Embarrassed China, Canada Goose Faces Backlash Yet Experiences Rapid Growth

Despite Discriminatory Return Policies for Chinese Customers, Sales and Net Profit Increase by 24% and 42% Respectively
Canada Goose CEO: "Chinese Market Continues to Grow, Collaborating with Chinese Designers"

[Asia Economy Beijing=Special Correspondent Jo Young-shin] Despite criticism of Canada Goose's discriminatory refund policy against Chinese customers, Chinese consumers' attachment to Canada Goose remains strong.

In China, controversy arose last December when Canada Goose's no-return and no-exchange policy became known. At that time, Canada Goose faced backlash following reports by Chinese media such as China Central Television (CCTV) accusing the brand of discrimination against Chinese people.

Chinese media Guancha.cn cited Canada Goose's third-quarter financial statements (October to December 2021, fiscal year ending in March), reporting that the brand's sales increased by 23.6% year-on-year to 586 million Canadian dollars (approximately 551.3 billion KRW). Due to the sales increase, the brand's net profit was recorded at 152 million Canadian dollars, a 42% increase compared to the previous year, the media reported.

Guancha.cn pointed out that although Canada Goose's discriminatory return and exchange policy against Chinese customers was criticized by Chinese consumers last December, it did not affect product sales at all. Furthermore, it added that Canada Goose's direct sales channels in China increased by 35.1% year-on-year in the third quarter of last year, and online sales grew by more than 60%.

Last December, there was a hostile atmosphere in China suggesting a boycott of Canada Goose, but it appears that Chinese consumers still prefer the Canada Goose brand.

The media reported that since Canada Goose opened its first store in Hong Kong in 2019, it operates about 20 specialty stores worldwide, the most in the world, and plans to open new stores in Dalian, Wuhan, and Ningbo.

It also reported that Danny Reiss, CEO of Canada Goose, stated at a recent conference call that "the Chinese market will continue to grow for years to come." He also mentioned plans to conduct marketing targeting the Chinese market as well as collaborations with local Chinese designers.

The media explained that Canada Goose's main markets are Canada, Asia-Pacific, and the United States, with most of the Asia-Pacific sales generated in China.

However, due to COVID-19 and other factors, the media added that Canada Goose's net profit for fiscal year 2021 (April 2021 to March 2022) is expected to be between 1.09 billion and 1.15 billion Canadian dollars, lower than the initially projected 1.125 billion to 1.175 billion Canadian dollars.

This content was produced with the assistance of AI translation services.