Canada Goose is Going Public, Proving Slow and Steady Really Does Win the Race
Canada Goose has come a long way from their humble beginnings as Metro Sportswear Ltd – a small apparel company founded in 1957 in Toronto, Canada. Today everyone from Drake to Emma Stone wears their jackets and as soon as the temperature dips below +10 degrees in any metropolis, you are bound to see them everywhere. And now the company is reportedly going public. The company has been valued at $1.7 billon and will seek to raise as much as $300 million in the sale, according to Bloomberg. Shares are expected to sell for C$14 to C$16 and the company has filed in both Toronto and New York.
Despite being a jacket that is meant for arctic temperatures, they have become a high fashion status-symbol. With price tags ranging anywhere from $700-$1200, when a consumer is wearing one, it makes a statement. Although the company has long targeted Hollywood and celebrities as “Goose People”, the general consumer population has caught on and have catapulted them into winter wear legends. To spread the word of their product, Canada Goose has been a sponsor of the Sundance Film festival for years (with a free jacket given to VIPs), among other high-publicity partnerships.
As their name continued to circulate, Canada Goose has taken advantage, launching stores in New York and starting up an e-commerce division which has made up a huge amount of the company’s revenue. “We have rapidly grown our online sales to $24.8 million USD in fiscal 2016, which represented 11.4% of our consolidated revenue” says a Canada Goose representative. These growth markers have allowed them to expand revenue to $215.5 million and have a compound annual growth rate of 38.3% over the past three years.
There are a few things to learn from the trajectory of Canada Goose.
- Going viral is not the only way to make a business work. This rise to fame took more than 50 years.
- Making high quality products will never go out of style. If what you make or do is the best out there, you will capture attention.
- Partnerships are the key to open many doors. Taking a product and putting it on an platform which provides maximum exposure can catapult you to stardom. In the case of Canada Goose, their ticket to the big leagues was Hollywood. But it doesn’t always have to be quite that high profile. Look for ways to gain exposure through other avenues – get involved with Charity auctions, partner with publicity companies, approach music/arts/film festivals. There is always a way.