FMCG Eight Talks Consumption Canada Goose Hot Search Due to quality problems, Canada Goose is on the hot search again. On December 12, Canada goose, which was sent to the hot search because consumers reported that they were suspected of buying defective products, and the store refused to compensate. Although consumers and the brand finally agreed on a treatment plan for exchanging Canada Goose for small gifts, the quality problems of Canada Goose that were frequently complained about were unavoidable. When the Chinese market, which accounts for a quarter of its revenue, gradually declines, will Canada Goose's goal of $3 billion in five years be successfully achieved?
Frequent crises
On December 12, "Canada Goose 9,500 yuan down jacket was suspected of being defective" appeared on Weibo's hot search. According to Ms. Xu, a consumer, she found a piece of fabric in the pocket of a Canada goose down jacket she bought at a store in Xuhui District, Shanghai, that it looked like it had been cut from a dress. Based on this, Ms. Xu suspected that the garment was a defective repaired product.
Ms. Xu said: "I bought the down jacket at the original price, not to buy discounted goods or defective products, and the store's behavior is to deceive consumers with shoddy quality." According to the provisions of the Consumer Protection Law, one should be refunded and three should be compensated. Ms. Xu's request was rejected by the store and asked her to prove that the product was defective.
In this regard, a reporter from Beijing Business Daily called the store in Xuhui District, Shanghai for verification, and the sales staff of the store said that he was not a professional of the company and had no right to respond, and there would be a special person from the company to contact and reply later. Subsequently, the reporter called the official customer service staff of Canada Goose, who said: "If the product is defective, the consumer can return it according to the purchase receipt." Other questions cannot be answered, and a special person will be contacted in the future. However, as of press time, the reporter has not received a response from Canada Goose officials.
It is understood that at present, Ms. Xu agrees to the treatment plan of Canada goose exchange and compensation for small gifts, and the two parties have reached an agreement.
Although the incident ended with a settlement between the two parties, the quality problem has always been the existence of Canada goose that has been constantly criticized.
Previously, Canada Goose has been on the hot search many times due to issues such as quality and service attitude. During 2021, some consumers reported that Canada Goose had problems such as trademark embroidery, rough stitching, and threaded heads, and at that time, Canada Goose's response strategy of "all goods sold in specialty stores in Chinese mainland are not allowed to be returned" was questioned by consumers, and under the continuous fermentation of ** and interviews with relevant departments, Canada Goose made a commitment that "under the condition of complying with relevant laws and regulations, all products sold in specialty stores in Chinese mainland can be returned for refund".
At the same time, the quality was not up to standard, and Canada goose was once deeply involved in false propaganda. During September 2021, Canada Goose was fined 450,000 yuan by the relevant departments for claiming that the down clothing fillings contained the best and warmest Canadian down, but it was confirmed that there was no factual basis.
The frequent ** crises and the official "arrogant" service attitude continue to consume the goodwill of Canada Goose in the hearts of consumers. For the service attitude of Canada Goose, consumer Luffy has a deep experience: "When the first store in China opened, I bought Big Goose, which can be regarded as the first batch of customers. However, in the case of lack of lint in the product, the official refused to fill the pile on the grounds of 'not meeting the replacement standard', and the whole maintenance experience was very poor. ”
Xiaomei directly gave a negative evaluation of Canada Goose's after-sales reviews. "The lifetime warranty of the whole network blowing is in vain, and the normal use of wear and tear has to pay 1200 yuan for maintenance. Xiaomei said. On the Xiaohongshu platform, many consumers complained about the double standards at home and abroad after the after-sales of Canada Goose, and the poor after-sales attitude.
Cheng Weixiong, a senior brand management expert and founder of Shanghai Liangqi Brand Management, said that as a mid-to-high-end brand, there are frequent quality problems, and the brand should attach great importance to product quality problems. As an international brand, Canada Goose has a condescending attitude and does not really pay attention to the consumer experience. As a leading brand, whether it is product quality, after-sales service or user experience, it is necessary to keep up with the best in order to reflect the brand premium.
Is it losing consumer favor?
When the quality of a product cannot keep up, and the service is difficult to match the price, consumers will have their own choice.
According to Canada Goose's latest financial report, in the second quarter of fiscal year 2024, Canada Goose's total revenue increased by 1% from the previous year to 2$800 million, compared to the year-ago quarter, total revenue growth slowed and decreased 3% in constant currency terms. At the same time, Canada Goose's overall net profit attributable to the parent has been declining year-on-year since the fourth quarter of fiscal 2022 and continues into the first quarter of fiscal 2024. In the three months ended July 2 this year, the net loss of Canada goose parent widened to C$85 million from C$63.6 million in the same period last year.
In addition, Canada Goose expects total revenue for the third quarter of fiscal 2024 to be $5Between $7.5 billion and $700 million. For the full fiscal year, Canada Goose expects total revenue to be in the range of $1.2 billion to $1.4 billion, down from the company's original forecast of $1.4 billion to $1.5 billion.
In October, UBS downgraded Canada Goose, saying the brand was losing favor with consumers.
It is losing the favor of consumers in the Chinese market. Affected by the double standard of Canada Goose's return policy and false publicity, Canada Goose will be in fiscal year 2023.
1. Revenue in the Asia-Pacific region continued to decline in the second fiscal quarter. However, in the second quarter of fiscal year 2024, Canada Goose's revenue in the Asia-Pacific region increased by 13%, but it slowed down significantly compared with the growth of more than half in the first fiscal quarter.
The business expansion of directly operated stores may be hindered
Wu Daiqi, CEO of Shenzhen Siqisheng Company, said that Canada Goose in the Chinese market is mainly based on direct sales, but does not pay attention to word of mouth, which will have a negative impact on the brand to a certain extent, such as the difficulty of business development of directly operated stores.
In fact, for the Chinese market, Canada Goose continues to emphasize its importance and continues to increase the layout of direct channels. It is understood that as of July 2, 2023, Canada Goose has a total of 54 stores around the world, and 27 specialty stores in China, accounting for more than 51%. In February this year, Canada Goose announced a five-year strategic growth plan - it will achieve revenue of C$3 billion in fiscal year 2028, and the DTC (direct) business will account for 80% of total sales. For Canada Goose, the realization of this goal is inseparable from the Chinese market.
But I have to admit that the prosperity of Canada goose in the Chinese market that was once squatted overnight and queued up to buy it is no more, and Canada goose seems to have ushered in its own winter.
As far as the current Chinese down jacket market is concerned, competition is also intensifying. In June 2022, Moncler, a French down jacket brand positioned in the mid-to-high-end market, officially entered Tmall to open a brand*** At the end of May this year, Remo Ruffini, CEO of Moncler Group, visited Beijing, Chengdu, Hangzhou, Hong Kong, Macau, Shanghai and other places in China, which also shows its determination to lay out the Chinese market. In addition, Moose Knuckles, a high-end down brand with the same belt and birthplace as Canada goose, has also made frequent moves. Last year, it launched a co-branded autumn collection with Li-Ning1990, a fashion brand under Li Ning Group, and successively selected domestic stars Wu Lei and Chen Feiyu as brand spokespersons.
In addition to international high-end brands, domestic down brands have also frequently explored high-end product lines, such as Bosideng's launch of a series of light luxury down jackets, priced at 10,000-1More than 30,000 yuan. Sky people launched a down jacket with a price of more than 7,000 yuan, determined to be a domestic high-end down jacket brand.
The development of Canada Goose in the Chinese market is still relatively orderly, although many brands, such as domestic down jacket brands represented by Bosideng, benchmark Canada Goose, and even want to surpass Canada Goose, this idea is understandable, but it will take some time at the practical level. At least in terms of brand premium, domestic brands still have some way to go, but in terms of product quality and consumer experience, domestic brands are not too bad. Cheng Weixiong said.
Beijing Business Daily reporter |Guo Xiujuan, Zhang Junhua.
Canada Goose Weibo.
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