This Year'S New Stores Will Focus On The Mainland Of China

Canadian geese stressed in the statement that new retail stores this year will be concentrated in the mainland of China, as compared with other markets, the Chinese market has recovered better and luxury consumption has returned due to international travel restrictions.

The new crown epidemic has brought unprecedented challenges to the global fashion industry. A large number of brand companies were forced to close their stores and announced layoffs and bankruptcies. BCG research shows that of all consumer goods industries, fashion and luxury goods are the hardest hit, with global sales expected to fall by 30% to 40%.

Canada goose, a Canadian down jacket producer, recently released its financial data for the first quarter of fiscal year 2021 as of June 28 this year. The total income from geese in Canada decreased significantly from $26.13 million to $26.63 million in the new season.

Canada geese said in a statement that the current situation strengthens the core of the company's direct selling (DTC) strategy, namely, direct business of Transnational E-commerce and omni channel innovation. Canadian geese have increased and accelerated investment in these areas to meet the critical autumn and winter. After a successful pilot in Canada, the company's boutiques in the United States also launched mobile Omni channel capabilities and promoted cross-border solutions to expand international users.

At the same time, the company will reduce its investment in retail and adjust its focus. Canada geese stressed in the statement that new retail stores this year will be concentrated in the mainland of China, because the Chinese market has recovered better than other markets, and because of international travel restrictions, "it is becoming more and more important to serve the world's largest luxury consumer group." The statement stressed. It is reported that the performance of new stores opened in June in Chengdu has been better than expected. In addition, several luxury goods companies such as Capri, LVMH and kering, the parent company of Versace, also said that China's demand was picking up.

"Like all businesses, we have experienced a reduction in customer traffic after the forced closure of stores and the resumption of opening. With the overall environment full of uncertainties, we focus on responding to the current situation and actively carry out strategic management during this period to move forward to our priorities. " Dani Reiss, President and CEO of Canada geese global, said in an exclusive interview with 21st century economic reporter recently, "there are too many uncertainties in the prediction of the future market in the world, but we have seen signs of gradual recovery of the Chinese market."

Geese Canada said it has now restarted production lines, plans to produce about one-third of its production in fy2020 and plans to significantly reduce inventory by the end of fy2021.

It is worth noting that new consumer behavior during the outbreak may become a long-term trend. Research by BCG points out that in the foreseeable future, consumers may reduce their spending, invest more in brands they trust, pay more attention to the quality, value and sustainability of products, care about where fashion comes from, whether its production is ethical, and whether it is as beneficial to the environment as much as possible. Reiss, in particular, is willing to interview and make a more positive impact on people's brand, especially in the world

In April this year, Canada goose released its first sustainable development report, promising to phase out disposable plastic products, achieve carbon neutrality, introduce recycled fur and stop purchasing new fur from 2022. "We will take steps to transform our business and ensure that we are doing everything we can to create a future that our brands and customers are looking forward to." Dani Reiss said.

Signs of recovery in Chinese market

21st century: the new crown epidemic has had a great impact on the fashion industry. What kind of impact does this have on the company's business? How is it different from past crises? Are you worried about this year's performance?

Dani Reiss: like all businesses, we have experienced a reduction in customer traffic after the forced closure of stores and the resumption of opening. With the overall environment full of uncertainties, we focus on responding to the current situation, and actively carry out strategic management during this period to move forward to our priorities. When the world stops and the demand for protective equipment is tight, we change production capacity, respond to the call, and actively adjust our business to cope with this challenging period. In less than three weeks, we coordinated the supply chain and manpower, and made every effort to provide protective clothing for front-line medical staff.

We learned from our distribution partners that our more influential brands can have a positive impact on the industry recovery. Our products have been tested and have performed well in uncertain times in the past. Consumers prefer this kind of functional, time tested and real wear products. The peak of the epidemic is in our off-season, so we have time to make adjustments. We believe that after the outbreak, our business and brand can still stand out in the market.

21st century: do you think the new crown epidemic will have a profound impact on the clothing retail industry? What will happen to the whole industry, especially the Chinese market?

Dani Reiss: we've all seen how this epidemic has greatly affected the pattern of the retail industry. I firmly believe that in the future, the retail industry will be dominated by truly dynamic brands, which will lead to practical changes and move towards a better future. Today, more than ever before, people expect enterprises to promote change, give back to society, and make positive contributions to their communities. Those who are silent in the challenges will be eliminated and forgotten. As for the forecast of the future market, there are too many uncertainties in the world at present, but we have seen signs of gradual recovery of the Chinese market.

Will continue to invest in all channels

21st century: how will Canadian geese cope with the great environmental changes? What adjustments has the company made in terms of business and strategy?

Dani Reiss: many of the challenges facing the industry are no longer new to us. In terms of corporate responsibility, in 2018, we increased investment and developed a series of plans to meet the more urgent challenges. The result was the release of our sustainable development report. This report, released in April this year, outlines our specific measures. Our commitments include the elimination of disposable plastic products, carbon neutrality, the introduction of recycled fur and the cessation of new fur purchases from 2022.

In addition, our production facilities in Canada have always been a strategic asset, especially at this critical time. Our investment in people, sustainability, technology and innovation is critical to our competitiveness. We have established a strong Omni channel foundation (including physical and e-commerce channels), and our e-commerce sector is not in a hurry. And given the importance of this part of the business, we will continue to invest.

21st century: Canadian geese recently said it would "adopt stricter control over the distribution of its products" and conduct its business more directly to consumers. Why is this? What strategies will be adopted?

Dani Reiss: we've been emphasizing the importance of facing the consumer directly, which allows us to engage more directly with the consumer. E-commerce platform is an important port for us to face consumers directly, and we have been investing in it for a long time.

We have also made a lot of changes in the store to ensure that we follow all the rules and take precautions to provide a safe shopping environment for consumers. More than ever before, it is important that we create a new brand experience for consumers. Last year, we opened a brand-new concept of "the young" and "the young" in the retail industry, and changed the concept of "the young" in the retail industry. Through the concept of inventory free retail, we provide one-to-one personalized shopping experience based on reservation service. Invite guests to explore the high-end functionality of our products by experiencing rich digital content, interactive product display and the new generation cold room fitting room.

21st century: during the epidemic period, people's worries about personal finance also affect purchase decisions, and there are a lot of discussions about sustainability. How do you see the importance of the transition to a sustainable business model? What do Canadian geese do?

Dani Reiss: we focus on making products that are very functional. Especially now, people want to buy more durable and practical products, and they are more willing to support brands that really make a difference and have a positive impact on the world. For many years, sustainable development has been an important issue in the world, and this epidemic has highlighted its importance. We made a commitment in our first sustainability report that we will take steps to transform our business and ensure that we are doing everything we can to create a future that our brands and customers are looking forward to.

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