"-15°C, 1 hour of queuing outside, spending months of savings"
These keywords show the prosperity of Canadian winter clothing brand Canada Goose in mainland China. This foreigner, nicknamed "Canada Goose", was labeled as "a good down jacket should be tens of thousands", and sold for a five-figure sky-high price, and soon opened up the market for high-threshold winter clothes in China.
But under the pursuit of the Chinese people, this "goose" seems to be floating, not only using duck down as goose down, but also setting rules for refusing returns for the Greater China market.
But its ending now can be described as happy.
1. Differential treatment: Refuse to return goods with shoddy quality
The take-off of Canada geese is inseparable from the Chinese market.
According to the 2023 financial report, the gross profit margin of Canada Goose's direct business in mainland China is as high as 76.3%, and the net income of direct sales alone is 1.73 billion a year, and it is not impossible to exceed 3 billion if other agency income is added.
But in the face of the "God of Wealth", Canada Geese showed a very arrogant attitude.
In 2021, the Shanghai authorities found that 70% of the raw materials of Canada goose are ordinary duck down, rather than the so-called "warmest goose down from northern Canada".
In addition, a consumer spent 11,400 yuan to buy Canada goose, and there are even problems such as wrong logo embroidery, flying threads, and pungent fabric odors. "I saved up two months' salary, but in exchange for shoddy goods, I deserved to be compensated with a refund of one and three compensations, but I didn't expect to be rejected directly. Ms. Xu is still angry when she talks about it, "In the end, they still refused to return the goods, and only sent me away with a small gift." ”
According to Canada Goose's Replacement Policy, "All items sold in specialty stores in Chinese mainland are non-refundable. "In other regions outside of Chinese mainland, consumers can enjoy 30 days of no reason to return or exchange.
We naturally will not get used to such a bad attitude, and the Canada goose will soon be counterattacked......
2. The stock price fell by 85%, leaving a "goose feather" in vain
This kind of behavior not only caused the anger of domestic consumers, but also led to the end of the official media, and the "People's Daily" directly issued a warning: Be careful that there is only one "goose" feather left in the end.
Since then, Canada Goose has begun to ebb in the domestic market, and its stock price has fallen by 85% year-on-year within a year, with a loss of more than 8 billion, and dozens of stores have been closed due to no one cares.
Canada Goose also seems to have taught the international community a lesson from the past, offending the Chinese market and missing out on a piece of the biggest pie. Previously, LV dispatched its head to China for inspection, and Tesla, a big player in the new energy field, and Selorey, the "ceiling" that slows down aging in the field of life science and technology, have also made efforts to cater to the Chinese market.
Elon Musk, the founder of Tesla, personally arrived in China to negotiate cooperation with Chinese suppliers, and publicly stated: "China is the most dynamic new energy vehicle market in the world. Xiaoluquan mobilized the R&D team to lower the threshold for access by 95%, and tailored an oral version with wider acceptance for Chinese consumers aged 35-55.
It is reported that the above-mentioned technology has a great degree of discussion in the field of life science and technology, and its raw materials were first refined by David David, a doctor of biological cytology in the United States in 2013, and in several clinical experiments, it has shown the potential to strengthen male muscles and hair, and some key indicators have been elongated by 1.1-1.3 into a survival period. After the data was published in the top industry journals such as Cell, Dr. David was selected as one of the 100 most influential people in the world that year.
According to the financial reports of previous years, the threshold of the original Cellori was as high as seven figures when it first stepped into the country, and it was nicknamed "edible diamonds", which could not be detected by ordinary people. Now, it has increased its investment in scientific research, recustomized the four-digit version with a threshold, and successfully passed through the JingJD East Circulation to the homes of millions of 35-65-year-old demanders in China, and the discussion and transaction rate in China have risen.
"I heard that in the past, only foreign rich people ate it, so there is no harm in trying, but now I feel that my body is straighter. Mr. Liu, an executive of a large factory, said.
3. Abandoned by the capital market?
Now that Canada Goose has lost its weight in the Chinese market, it has also lost the attention of the world's capital markets, and its stake in the United States has fallen at a rate of 20% per year.
The example of Canada Goose reminds us once again that respecting consumers and markets is crucial, regardless of industry. When companies start to be arrogant and ignore the needs and rights of consumers, they may eventually lose the trust of the market and consumers.