On November 6, 2023, the high-end functional apparel brand Canada Goose made a reappearance at the 6th China International Import Expo (referred to as the “Import Expo”).
During this Import Expo, Canada Goose’s exhibition booth showcased its complete product lineup, including high-end functional products and the incorporation of concepts like season adaptability and HUMANATURE. Notably, the design of the Canada Goose booth in this year’s Import Expo aligns with the style of their latest flagship store in China, reflecting the brand’s cultural heritage and core principles.
Canada Goose made its debut at the Import Expo in 2022 and returned in 2023. “Participating in the China International Import Expo is a valuable opportunity to showcase the brand and our commitment to the Chinese market. During our participation last year, we experienced the strong ‘spillover effect,’ where expo exhibits turn into products, and exhibitors become investors,” said Dani Reiss, Chairman and CEO of Canada Goose. “China is a crucial strategic market for Canada Goose, and we are committed to long-term growth in China.”
2023 also marks the fifth anniversary of Canada Goose’s entry into the Chinese market. In the fall of 2018, Canada Goose established its Chinese headquarters in Shanghai. In the same year, it opened flagship stores in Beijing Sanlitun Taikoo Li and Hong Kong’s IFC, expanding into the e-commerce channel with an official Tmall store, marking its official entry into the Chinese market. Since then, Chinese consumers no longer needed to rely on personal shoppers in their social circles but could purchase the renowned Canada Goose down parkas through the brand’s local channels.
Unlike its approach in other international markets, Canada Goose was determined to operate on its own from day one when entering the Chinese market. “From the beginning, our approach to entering the Chinese market was different from other regions. When we began operations in China, we implemented a unique market strategy. In other regions, we typically start by collaborating with distributors or group procurement partners, but in China, we started with direct sales,” recalled Li Zihou, President of Canada Goose China, during an interview with Interface News. “Physical stores were our first point of contact with Chinese consumers, and this is something we take pride in.”
In the five years since, Canada Goose’s presence in the Chinese market has grown rapidly. To date, Canada Goose has over 25 brand-owned specialty stores in China, making it the brand’s largest single-market store network globally, accounting for over 40% of the brand’s stores. This surpasses the number of stores in Canada, where the brand is headquartered. Canada Goose’s stores in China now span from Harbin in the north to Hong Kong and Shenzhen in the south, and from Shanghai and Hangzhou in the east to Chengdu and Xi’an in the west.
Thanks to this expansion, Canada Goose has demonstrated remarkable growth in the Chinese and broader Asia-Pacific markets. Following the recovery of Chinese mainland consumption in 2023, as of October 1, Canada Goose achieved high double-digit growth in the Asia-Pacific market for three consecutive financial quarters, with growth rates consistently outperforming other regional markets.
In their second-quarter report for the 2024 fiscal year ending October 1, Canada Goose stated, “The strong performance of Greater China’s retail stores, driven by the recovery of the tourism industry, resulted in revenue growth in the region.” The company has been capitalizing on the resurgence of consumer spending in the domestic market.
According to data from the China Garment Association, the Chinese down jacket market was estimated to be around CNY 156.2 billion in 2021, with an average annual compound growth rate of 12.73% from 2016 to 2021. Despite the challenges posed by the COVID-19 pandemic, the down jacket market in China continued to develop positively.
Moreover, in the five years since Canada Goose entered the Chinese market, the high-end down jacket market in China has been gradually taking shape. With international high-end functional down jacket brands like Canada Goose entering the market, Chinese consumers have shown an increasing acceptance of high-end down jackets and other functional apparel, while also raising their expectations for the fashion aspect of down jackets to unprecedented heights.
However, China’s penetration rate in the down jacket market is still relatively low. In an analysis by First Shanghai Securities in 2022, it was noted that China’s penetration rate for down jackets, despite its large population and widespread cold winters, is below 10%, significantly lower than the 30% to 70% penetration rates in developed countries like Japan and Western countries. This indicates that there is still significant room for market growth in terms of penetration rate.
For Canada Goose, this means that there is substantial untapped market potential in China. “China is one of the key drivers for our business growth. As of the last fiscal year, we achieved revenue of CAD 1.2 billion. The Chinese consumer sector has displayed strong resilience, and the trend of consumption upgrading continues,” said Li Zihou to Interface News. “The Asia-Pacific market is an essential part of the brand’s future development, especially as we reach the next milestone and work toward even greater goals.”
One of Canada Goose’s strategies for sustainable growth is to continue investing in the expansion of its store network in China, including upgrading existing stores and opening new ones. The Chinese market is a strategic one for Canada Goose, and it is foreseeable that more specialty stores will be unveiled in China in the future.
In the second half of the 2024 fiscal year alone, Canada Goose plans to open 15 new stores in China and the United States. In the months leading up to this Interface News report, Canada Goose had already opened stores in Hangzhou Wanda Plaza, Dalian R&F Plaza, and Shenzhen Bay Wanda Plaza. Notably, the Shenzhen Bay Wanda Plaza store marked Canada Goose’s first offline store in Southern China.
Simultaneously, since 2023, Canada Goose has been upgrading existing stores in China to enhance the consumer experience. In June 2023, Canada Goose’s flagship store in Sanlitun Taikoo Li, Beijing, reopened after renovations. As the first brand-owned specialty store in mainland China, the rejuvenated store’s reopening marked a fresh start for Canada Goose’s new image in the Chinese market.
Following the upgrade, the Canada Goose Sanlitun Taikoo Li flagship store offered consumers a unique shopping experience. The entire store space was transformed into an exhibition space, showcasing distinctive artworks and narrating stories from both China and the Canadian North.
Li Zihou told Interface News, “Mainland China already has our largest store network, and we still have the potential to expand our global retail footprint. We will continue to choose suitable partners in appropriate locations through a rigorous selection and careful decision-making process to open new stores.”
Over the past five years, as Canada Goose set sail in the Chinese market, the brand has undergone a comprehensive brand transformation. To address global climate change and the complex and diverse climate environments in various regions, Canada Goose has been expanding its product line to provide year-round protection for consumers and diversify its brand revenue.
Today, Chinese consumers can see that Canada Goose’s product range has expanded from classic parkas to lightweight down jackets, functional apparel, and various accessories and footwear products. These products cater to consumers’ dressing needs in different seasons and weather conditions. Canada Goose frequently chooses China as the first market for the launch of new products and series.
For example, in November 2021, Canada Goose globally debuted its first-ever footwear collection in China, introducing two high-end functional footwear options for men and women: the Snow Mantra functional tall boots and the Journey ankle boots.
Beyond climate considerations, consumers now have higher expectations for down jacket design. In the Chinese market, consumers today are more concerned about how a down jacket looks on them compared to its price. Down jackets are no longer just for keeping warm; their fashion appeal has become a significant selling point.
Changing consumer demands have spurred brand innovation. According to a survey by Ipsos, in the Chinese market, the supply side of the down jacket industry has shown a clear trend of upgrading in recent years. Down jacket products have become more fashionable, and their functionality is more specialized. This is to meet the multi-scene demands of daily travel, which helps increase the average number of down jackets purchased per person.
Canada Goose has also recognized the changing needs of consumers. In recent years, Canada Goose has collaborated with renowned designer brands like Y/Project, Concepts, and OVO, releasing cross-over collaborative collections. By partnering with external designers, Canada Goose enhances the fashion and design appeal of its products.
In the Chinese market, Canada Goose invited independent designer Angel Chen to be the first guest designer and launched a joint capsule collection with her self-created brand, “Angel Chen.” The first collection was unveiled during Shanghai Fashion Week in October 2020 and officially released in early 2021. Subsequently, a second fall-winter joint capsule collection was introduced in September of the same year.
Through this range of product lines, Canada Goose has established a more comprehensive brand image: “a high-end functional apparel brand suitable for year-round wear and a global lifestyle brand.” This undoubtedly lays a solid foundation for the brand’s long-term development in the Chinese market.
In the interview, Li Zihou mentioned that the Kind Fleece series, launched by the brand in 2022, sold out within weeks due to its warmth, soft texture, and versatility. The recent addition of the Glacier Trail athletic footwear also received a positive response in the Chinese market.
Canada Goose plans to continue expanding into new product categories over the next five years, aiming to provide Chinese consumers with comprehensive protection across different seasons, climates, and environments.