Canadian Goose Strike Purchase Is Lacking Sincerity. China Price Spreads Exceed 50%

Following the layout of China's Hongkong and online channels, it was literally plated as a famous Canadian geese.

Canada Goose further locked in the Chinese market and opened a 8 day interactive exhibition in Sanlitun, Beijing in November 23rd.

Canadian goose president and chief executive officer Dani Reiss announced at the scene that the first flagship store in mainland China will open in taiguli, Sanlitun.

However, compared with the brand's intention to crack down on China's purchasing channels, the Beijing Commercial Daily reporter saw in the flash shop that the product styles were basically synchronized with the international market, but the price in China was much higher than that in Canada.

People in the fashion industry say that the canadian goose's current pricing in China does not seem to be effective enough to shake up the purchasing market. At the same time, it may also be a deliberate intention of the company.

China's pricing spreads exceed 50%

From a small warehouse in Toronto, Canada, to the top down clothing brand sought after by young people, canadian goose products and layout have attracted considerable attention in recent years.

So that the chairman of the board of directors of Shandong Ruyi holding group

They all said with emotion, "now some young people prefer to buy 20 thousand yuan, one with a canadian goose brand.

It is not willing to spend 2000 yuan to buy a very good domestic down jacket.

It can be seen that the purchasing power of young Chinese consumers and their ability to pursue new things are far beyond imagination. This also stimulates Canada geese to focus their performance on more developed China.

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However, the canadian goose, the first to test Tmall flagship store, did not set the price of China more close to the people, but chose the relative "high cold" pricing direction.

By comparing the brand stores and the official flagship stores in China, the Beijing Commercial Daily reporter found that the price of Chinese geese in Canada is generally higher than the price of the country of origin by 3000 yuan, and the difference between some products is even as high as 5000 yuan.

Take the "CHATEAU Black Label Parker" as an example, the product sells for 8600 yuan in the country and sells for 995 Canadian dollars (about 5225 yuan) in Canada, and the product price in China is 65% higher than that in Canada.

The European product price is 950 euros (about 7484 yuan), compared with the European price is lower than the domestic 1200 yuan.

Although the price is so, there are many consumers in the flash shop.

Beijing Commercial Daily reporter noted that although canadian goose Beijing flash store is rare, it is basically synchronized with international style, including Parker coats and other popular products.

On the day of the interactive experience, the canadian goose flash shop lined up, and some young consumers tried it on and bought it.

One of the consumers told reporters that compared to the network channel, try out the store can see whether the style is suitable for itself.

Pressure on purchasing agents is lacking sincerity.

Although Canada goose has entered China late, it has not been slow to announce its strategy since May.

In addition to the headquarters of the Greater China group in Shanghai, there are also boutiques in Hongkong, China, and the sales channels of Tien cat platform and official website. Next, Beijing Sanlitun Taigu flagship store will be officially opened before the end of this year.

For the first store in the mainland, Canada goose not only played a "flash" game, but also invited stars to help set up a 8 day interactive exhibition.

It can be seen that the brand attaches importance to the Chinese market and expects the performance of the mainland stores.

At the same time, as a "mainstream" channel to introduce canadian goose into the Chinese market, purchasing will be a cake that the brand hopes to suppress and take back to its own hands.

Overseas media quoted the company executives as saying that Canada geese entered the Chinese market in addition to valuing the development space, and also wanted to take this opportunity to crack down on purchasing behavior.

However, Zhou Ting, President of the luxury goods field and the Research Institute of guests, said: "at present, the pricing of Canadian geese may not really shake the Chinese purchasing market."

According to the data of Tmall platform, as of November 25th, the number of fans of Tmall goose Tmall official flagship store was 178 thousand, of which the sales volume was the first, and its monthly sales volume was 389.

Beijing Business Daily reporter found that with the Taobao platform, a shop named "small canadian goose", the first month sales volume was 337, and sales volume was directed to the official flagship store.

At the same time, the top selling product is EXPEDITION, the price is 4680 yuan, and the shipment is displayed in Canada.

In the trend of high demand, Canada goose's performance has been rising. According to the two quarter earnings report released in mid November, the turnover increased by 33.7% to 174 million US dollars and net income reached US $37 million 700 thousand.

The brand will therefore raise its revenue forecast for fiscal year 2019 to at least 30%, 10 percentage points higher than the level it had anticipated.

Data also showed that the two quarter of the brand's physical store and online sales increased by 150%, prompting the brand share price soar.

Interest driven behind

Industry experts said that the foregoing part of the young people willing to shop in the store is the target of brand high pricing. Entering the Chinese shop in addition to hoping to crack down on purchasing channels, there is a huge commercial interest behind it.

Therefore, China's pricing can be described as "deliberately".

For Canada goose in the Chinese market to choose the pricing level, Zhou Ting believes that the brand is not not aware of the gap between China and Canada, but actually wants to seek greater interests in China.

For Chinese consumers, the influence of this brand seems much greater than the actual value of goods.

Chinese consumers have always had a misunderstanding, that is, "tariffs affect prices".

In fact, tariff is only a fraction of the brand cost, even less than the 1/10 of the product cost. However, most consumers still believe that the high price of luxury goods is caused by China's excessively high import tax.

What's the core significance of opening Canadian geese in the Chinese market? Zhou Ting said that stores can make the brand face the majority of consumers in regular channels, which will help build brand credit and reduce the risk of consumers buying fake products. The brand side also hopes to further squeeze the purchasing market through formal channels.

"However, this is only limited to the brand's self owned stores. The data we have surveyed show that 85% of the luxury goods on the electronic business platform are fakes, and these fake goods are also frequently found in purchasing channels."

She said, therefore, the brand wants to use formal channels to suppress the purchasing market, and solve the problem of the prevalence of counterfeit goods, but for now there is still a long way to go.

(author: Wang Xiaoran Chen Yunzhe)