Keeping it real with Canada Goose’s Dani Reiss

Share

This is an excerpt from Business Insights, by Robert Gold, FCPA, FCA, and Andrew Z. Brown. The book is published by the Chartered Professional Accountants of Canada (CPA Canada) and is available at cpacanada.ca/bizinsights

In a world that has grown used to seeing expensive name-brand merchandise manufactured in Asia, Canada Goose is an anomaly. In the early 2000s, when the exodus of clothing manufacturing from North America was helping international brands dramatically lower costs and increase profitability, Canada Goose made a conscious decision to keep its manufacturing force in Canada.

A commitment to keeping it real. While other manufacturers continue to believe that cost-sensitive customers really don't care where their goods are made, Canada Goose has taken what many would see as a radically different approach. According to Canada Goose president and CEO, Dani Reiss, "You can't make a real Swiss watch in China. So, why would you expect that you can make a real Canada Goose jacket in China either?" For Canada Goose, that fundamental commitment to authenticity has fuelled their rapid rise to the top of the winter clothing industry.

In fact, authenticity and determination helped Canada Goose truly distinguish itself from the competitors. They decided that in order to be a market leader they needed to "change the game" on competitors rather than competing with them on their terms – and that's what Canada Goose did with the decision to continue manufacturing in Canada. They knew that if they could hold this position, they would find themselves in an industry where the competitors had left, leaving them with a point of distinction that could be turned into a powerful competitive advantage – and that's exactly what happened.

Hiring for real. At Canada Goose, maintaining authenticity is how they live, but making an authentic product in Canada is just the beginning. The culture of authenticity is part of the company's DNA, and it shows in the way it hires people and manages performance.

When Reiss meets with applicants for managerial positions, he shares with them exactly how it is – potentially scaring them off by telling them they won't do well at Canada Goose unless they are comfortable at managing chaos. That way, people understand what they are getting into. When they do join the company, they find that Reiss was telling it like it is – it is a fun place to work, fast paced and performance driven, but it's also hectic!

Building products for real. Even though "fashionistas" around the world can now be seen showing off the latest Canada Goose products – on city streets, in fashion magazines, and on fashion runways – Canada Goose remains true to its core and sees itself as a maker of functional clothing designed to keep people warm in cold weather.

Their product line expansion reflects this focus by building on its core expertise, which is the use of natural down as powerful insulation. In fact, recognizing that not everyone needs the extreme insulation Arctic adventurers require, Canada Goose has created its own proprietary "Thermal Experience Index," which allows wearers to choose the type of warmth they need, i.e., whether it's a lightweight jacket for active pursuits or a field-tested parka for the coldest places on earth.

Listening to real people. Canada Goose sees its customers as real people – as everyday heroes who strive for excellence. They climb mountains, lead expeditions, race dogsleds and live extreme lifestyles – and they do it all wearing Canada Goose clothing. They know firsthand what is essential in the clothes they wear in extremely cold conditions, so the company seeks their feedback when testing new products.

Garments that are being tested as potential new entries in the product line are sent out to these real "Goose People," as well as to employees and other Canada Goose fans who are designated gear testers. They are asked for feedback, which is then built into the product development process. This lets the company validate products before they go into full production. Some items never make it to market because the gear testers have shown that for one reason or another they don't work because they don't pass the test of meeting the real needs of real people.

Marketing real When Dani Reiss took over Canada Goose, he realized there were amazing stories of people who wore the company's gear: people who lived and worked in the coldest places on earth.So he began to tell these stories of real people.

He saw, for example, that film crews working in Antarctica often wore Canada Goose gear. He pointed out to these crews that people who live in Antarctica wear Canada Goose jackets too. So, he asked the filmmakers, "Why not have them in front of the camera as well as behind?"

As it turned out, this was a critical moment in Canada Goose history, leading to its sponsorship of major film festivals around the world, including the Toronto International Film Festival and the Sundance Film Festival. Telling Canada Goose stories through film in this way increased their visibility by putting the company's brand of authenticity in front of more people around the world.

The real patriot. The "Made in Canada" label has served Canada Goose well as it has expanded in the world marketplace. Reiss sees that Canadians are well positioned to compete globally because growing up in a multicultural society means they have a much-desired understanding and appreciation for cultural diversity that is unique in the world.

But even so, successful international growth takes time. According to Reiss, going into a new marketplace for a year isn't enough. You must plan to be there for at least three years before you decide it hasn't worked. He also advises potential global players to pay close attention to pricing. The myriad international tax issues and import duties can easily lead a company to overprice its products or have too wide a spread between its prices in different markets.

The real family business. Canada Goose is successfully managed by the third generation of the Reiss family, a status that many family businesses would envy. Reiss credits much of this success to the attitude of his father, who had allowed his son to run the business in his own way.

In fact, nobody was more surprised than Dani when he not only stayed in the family business, but grew it into the international success story it is today. As he says, "I never thought I could become passionate about parkas." But, he found more than passion for parkas. He found a passion for authenticity … and for a way to build that into a thriving company in a highly competitive and international industry. His advice to new generations of family businesses is not to join the business because it's expected of you, but because you believe that it is really who you are and who you want to be.

KEEPING IT REAL

• Build your vision on deeply held values. Hold firmly to these values as they help establish a strong foundation for profitability and guide you to make difficult decisions.
• Articulate your competency – one that allows you to make a profit. Build on this competency so you stay with those things that you do exceptionally well and sustain your profitability.
• Find something that you are truly passionate about and build it into your day-to-day business operations. It will help to carry you through the tough times that you will face when growing a company.

Original BusinessCast episode: http://bit.ly/BCCanadaGoose 13.41 minutes

Follow us @GlobeSmallBiz, on Pinterest and Instagram
Join our Small Business LinkedIn group
Add us to your circles
Sign up for our weekly newsletter