Case Study Business Strategy
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Strategic case study on Canada Goose’s growth trajectory, examining market positioning, business model, and customer psychology to uncover strategies for sustaining brand loyalty and long-term growth.
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Year: 2021
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Question to Answer: Is Canada Goose a successful brand?
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By definition, a successful company is a business that provides all shareholders value in some form of another, has a dominant strategy, with a clear vision (Wright, 2012). Therefore, yes, I believe that Canada Goose is successful.
Canada Goose is a Canadian outdoor luxury brand leading a differentiation strategy with a strong brand history and culture dating from 1957. They have undeniable quality products to justify their very high price tag and became a luxury brand when more high earning and high-status individuals started wearing them. Canada Goose’s mission is to Free People from The Cold and create an immersive culture of great values – inspired by relentless innovation and uncompromised craftsmanship, recognized as a leader for its Made in Canada commitment (Canada Goose, 2022). Instead of Elitist Luxury, Canada Goose’s authenticity creates an image of “New Luxury” that contributes to their strong brand image which in turn diminishes the threat of new entrants to compete with them.
Figure 1. Canada Goose China Market Buyer Persona
To become a global brand, Canada Goose’s key activities lies heavily in partnerships with the entertainment and film industry as well as Canada Goose Beyond – collection of collaborations with brands (Vetements, OVO, NBA), activism causes (Polar Bears International), and independent designers (Inuk designers for Project Atigi, Glenn Martens, and Angel Chen) producing fall and winter coats and knitwear. They also acquired Baffin in 2018, a footwear company in efforts to broaden their product mix beyond winter parkas into an all-season apparel brand.
Backed by Bain Capital since 2013, Canada Goose’s revenue comes from their multichannel distribution through their wholesale and DTC segment of 56 national e-commerce markets and 41 directly operated retail stores across the world. After surging online sales and strong Chinese demand in 2021, Canada Goose’s DTC segment contributes to 528 million CAD (62% of their total revenue) while wholesale contributes to 321 million CAD. This presents an opportunity to grow even more in the DTC space, especially with the uncertainty of offline shopping, pandemic pushing digitalization quicker.