In recent years, with the advent of the winter cold wave,Down jacketsThis warm winter artifact has become a must-have item in people's wardrobes. However, Canada in the spotlightDown jacketsbrand".Canada goose"But because of the stock price** has attracted widespread attention. AlthoughCanada goose's sales have been climbing, but its stock price has been declining. Since its listing in 2015, the share price has grown from 72$27 The stock fell to its current 11$72 shares, the market value has evaporated by $6.2 billion (about 44.6 billion yuan).RMB）。The market is rightCanada gooseGradually losing confidence, what happened to this once fashionable brand?
Canada gooseis an unpretentious oneDown jacketsThe brand, born in Canada in 2000, focuses on the production of polar cold clothing. With its simple design and good warmth,Canada gooseQuickly became popular. Well-known movie star Matt Damon,Emma WatsonAnd so onCanada gooseFans. Especially under the influence of Hollywood, this oneFashion trendsIt was also quickly introduced to China. Canada gooseThe name became synonymous with fashion and quality. At the end of 2018, the first in ChinaCanada gooseOpened in Sanlitun, Beijing, consumers did not hesitate to queue for hours in the cold wind in order to see the style of the "big goose". Canada gooseThe ** is expensive, but it is still warmly sought after by young people in China and has becomeFashion trendsThe representative item in .
with othersDown jacketsBrands are different,Canada gooseAdopted a direct-to-consumer model to enter the Chinese market. The direct sales model refers to the investment in opening physical stores, which is slower to expand than the wholesale model, but can give consumers a better shopping experience. As of now,Canada gooseIt already has 27 directly-operated stores in China, and it also has ** sales on major e-commerce platforms. According toCanada goosefinancial report data, direct businessGross marginUp to 763%, much higher than the 49 percent in the wholesale business7%。Canada gooseBy 2028, direct sales are expected to account for 80% of total sales. It can be said thatCanada gooseWe are confident in the sales prospects in the Chinese market.
However,Canada gooseThere have also been many times when controversy has been caused by some misconduct. In 2021,Canada gooseBecause of false propaganda and refusal to return goods, it has been on the hot search. What's even more infuriating is thatCanada goosein foreign countriesDown jacketsEnjoy "30 days no reason to return", while the products sold at the China counter are "once sold, no return or exchange". These strange operations have caused dissatisfaction and anger among many consumersPeople**have published articles saying that if the quality of the product is poor, they will not return the goodsCanada gooseIt could end up going bankrupt.
The financial results for the second quarter of 2023 were exposedCanada gooseThe current decline. In the first half of this year,Canada gooseCumulative revenue was 3C$6.6 billion, up just 548%。The net profit attributable to the parent company was a loss of C$77.2 million, an increase of 30% from the loss in 202263%。Although the second half of the year forDown jacketsBusiness is the main sales season, butCanada gooseIt has lowered its revenue guidance for the full year 2024. This news makes:Response** more than 10%.
In order to restore market confidence,Canada gooseDanny Rhys, chairman and chief executive officer, said that China, as the region with the largest contribution to the profit of the direct business, is still optimistic about the potential and development space of the Chinese market. To this end,Canada gooseA series of measures have been taken to boost market confidence, such as the introduction of 24 interest-free instalments. However, for consumers, it takes two years to pay off a piece that is not worn very oftenDown jacketsConsumer loans are not ideal. In addition, withCanada gooseThe domestic market is flooded with more and more high-imitation goods, one pieceCanada gooseIt only costs a few hundred dollars. This promiscuous counterfeiting has led to the spread of the phrase: "The rich."Bosideng, the poor wear big geese".
However,Canada gooseThey don't show enough concern about counterfeiting, and they seem to be just trying to reap the rewards while the brand is still hot. However, this overly greedy approach will only let youCanada gooseLosing the future. At this point, the capital market is better thanCanada gooseCEOs are more sensible. Young Chinese are no longer the "leeks" that are easy to harvest for foreign brands, and they are more willing to support truly excellent domestic products.
However,Canada gooseIt's not that there is no chance of turning over. Witty netizens gave some suggestions, suggestionsCanada gooseFocus on the European market. Since cheap energy from Russia is no longer reliable, Europe will definitely be cold this winter, rightDown jacketsThe demand is sure to increase.
Finally, for many brands, it is often difficult for them to grasp opportunities in a huge market like China. Some brands put too much emphasis on how to make money quickly and ignore the importance of providing quality products and services. It turns out that being too greedy will only make brands go faster.