Why Can Canada Goose Achieve 62% Strong Growth In The Asia Pacific Region?

In the face of structural changes caused by changes in consumer behavior, creating products and services that are more consistent with their value recognition will become a key driving force in the new stage. This is also a direction worth exploring for the luxury market and fashion industry in the future.

High end functional positioning,

Achieving consumer led growth

In the past, high-end used to mean following the trend and showing one's identity and status; Today's high-end consumers pay more attention to the authenticity of the brand, hoping to obtain a consumer experience that brings emotional resonance, and see brand actions that match consumers' personal beliefs.

When Canada Goose officially entered the Chinese market in 2018, it launched its brand with "high-end functionality". Therefore, consumers believe that Canada Goose can provide consumers with considerate protection, cope with the changing climate and environment, and travel to areas that have not been explored before. At the analyst meeting after the release of the financial report, Canada Goose said that during the third quarter of the 2024 fiscal year, the passenger flow in mainland China doubled, and the sales volume on the Double 11 holiday reached a record high. The cold weather promoted the significant growth of the brand parka category; During the "Black Five Year Plan" period, the customer flow of specialized stores broke records, and the comparable sales increased by 40%. These all confirm the trust of consumers in Canada geese.

On this basis, the brand strengthened its attention to female consumers and Gen Z, and delivered the core of brand value while achieving youth through joint branding. Co branded cooperation with the designer brand Pyer Moss, the trend brand OVO, etc., has constantly promoted the brand's attention and recognition among consumer segments. The second cooperation with Japan Chaopai Bape will become the best-selling co branded series of Canada Goose in fiscal year 2024.

Direct marketing mode transformation,

Key strategies behind growth resilience

If we say that the high-end functional genes of brands are the guarantee of brand growth in the period of industrial slowdown; In that case, DTC business is the key to keep Canada Goose resilient.

Since Canada Goose brand first entered e-commerce in 2014 and opened the first batch of flagship stores in Toronto and New York in 2016, Canada Goose has started a multi-year direct marketing transformation plan. From the data of the third quarter of fiscal year 2024, the direct marketing model continues to bring good benefits to Canada Goose. Global direct channel revenue increased by 14%, and the proportion of direct channel sales in total sales increased from 78% in the same quarter of the previous fiscal year to 84%.

It is worth mentioning that Canada Goose also focuses on "betting" on the Asia Pacific market. At present, the total number of Canada Goose global specialty stores has reached 65, and the mainland market alone accounts for more than one-third of them. In June 2023, Canada Goose will also upgrade its first store in mainland China, located in Taikoo Li, Sanlitun, Beijing, to a flagship store with the largest area in the world.

The direct retail model can directly face consumers, promote the brand to reshape people, goods and markets with consumers as the center, so that the brand side can fully understand consumer demand, and make a faster and more refined response from brand to commodity.

For Canada Goose, direct retail provides not only eye-catching financial data under the "low growth cycle", but also helps to achieve brand image management and better customer service, so as to achieve brand growth resilience.

Layout offline experience activities,

Canada goose releases signal of deep ploughing in China

In the face of the Chinese market with growing passenger flow and omni channels, Canada Goose has released a strong signal of deep cultivation in China through the layout of experiential retail space and more distinctive localization activities.

Take the world's largest flagship store located in Taikoo Li, Sanlitun, Beijing as an example. On the first floor of the single building, Canada Goose has set up a Cold Room low-temperature experience room, which simulates the low-temperature environment with snow, helping consumers feel the excellent functionality of Canada Goose products; In the exclusive experience area on the second floor, there is an open-air garden. In the exhibition area, there are symbolic pieces of the brand with a history of more than 60 years.

In other stores, the concept of the brand "Live in the Open" is also expressed through product and art displays to create a diversified consumption experience combining product performance and aesthetics.