Canada Goose is the second fastest growing luxury brand in the world. They have created an amazing store experience that at the same time makes it easier to manage the store and reduces inventory costs. And it is easy to do. David Young: Welcome to the Empire Builders podcast, teaching business owners the not so secret techniques that took famous businesses from mom and pop to major brands. Stephen Semple is a marketing consultant, story collector, and storyteller. I'm Stephen's sidekick and business partner, Dave Young. Before we get into today's episode, a word from our sponsor, which is, well, it's us. But we're highlighting ads we've written and produced for our clients, so here's one of those. [Tapper Jewelry Ad] David Young: Stephen Semple, you're in Canada. Stephen Semple: I am, proudly. David Young: And I know you wanted to brag a little bit about a Canadian company in this episode. Stephen Semple: Absolutely. It's about time we brought a little bit of Canadian to this whole thing. I actually feel bad it's taken this long. David Young: Well, tell me your Canadian story. Stephen Semple: I want to talk about a company called Canada Goose. And it's not necessarily super well-known. So the first thing I want to add is that they are, right now, the second fastest growing luxury brand on the planet. David Young: Wow. Stephen Semple: So, when somebody's the second-fastest luxury brand on the planet, I think it's worth paying attention to what they're doing. And what I specifically want to talk about is they have a very interesting business model in terms of how they've managed to marry brick and mortar in their online presence that only works for consumers, but actually makes their business a lot easier to manage. And these guys have done just an amazing job building this empire. But let me tell you a little bit about the story of Canada Goose. They make these big puffy like Michelin Man style puffy winter coats, right? David Young: A parka. Stephen Semple: Yeah. David Young: As one wears in Canada. Stephen Semple: Right, that is stuffed with goose down. David Young: Uh-huh (affirmative). Stephen Semple: Surprise, surprise, right? And they were founded in 1957 by a Polish immigrant, Sam Tick. And they originally started as a company called Metro Sportswear, and they were making clothing for police and municipal workers and private labels. So basically, high volume, low margin stuff. And by 1985, they grew to 50 employees and they started their own brand at that point because what they wanted is they wanted to have more control over their destiny. And they called it Snow Goose. David Young: Okay. Stephen Semple: And in the early nineties, they ran into some issues with the name Snow Goose because of other companies and whatnot, and they changed their name to Canada Goose. And then here's when it gets kind of interesting because in 1997, under Canada Goose, they sold $3 million worth of product. David Young: 87. 3 million. Stephen Semple: Yep. Some 3 million. Not a lot, but by 2008, 17 and a half million dollars. Five years later, 70% of the company was sold to Bain Capital, Mitt Romney's company, for $250 million. So Bain Capital came along and bought 70% of the company for that price. But there was an interesting thing, stipulation. Sam Tick stipulated that that was great, they were going to sell the company, but manufacturing had to be maintained in Canada. David Young: Okay. Stephen Semple: And these coats are still made in Canada, they're not made in China or anything along that lines. That's part of the deal. 2014, sales hit $200 million. 2016, they went public. And by 2018, they were doing $591 million worth of sales. And today, second fastest growing luxury brand. David Young: So, what's the key? Stephen Semple: Here's the key. Here's what they're doing.
No transcript available.
POWERED BY BLUBRRY
