Canada Goose Holdings, Inc. SWOT & PESTLE

SWOT

SWOT Matrix for Canada Goose Holdings

Detailed SWOT Analysis of Canada Goose Holdings

The detailed SWOT analysis for Canada Goose Holdings, Inc. is presented below:

Strength

1. Expansion through multichannel distribution: Canada Goose targets and reaches out to its customers based on how and where they want to shop, through its two distinct and complementary channels (Direct-to-Consumer (“DTC”) and Wholesale), backed by its impeccable distribution strategy. The company has evolved its distribution channel from distributing its products on a wholesale basis for resale by others to a multi-channel distribution model, which includes retail and online stores directly operated by the company. Canada Goose's wholesale channel plays a significant part in extending the reach and diversity of the group's business. To ensure the highest standards of customer experience and brand storytelling, the company closely works with a network of best-in-class partners and distributors. Whereas with its DTC channel the company penetrates most important markets, having direct and unfiltered relationships with the potential customers besides having a well-disposed margin. In a digitally evolving world, Canada Goose's eCommerce platform is strong and dynamic, offering a broad portfolio of products that are available anytime. The company's retail stores are exclusively for customers who enjoy physical and immersive experiences, in both exceptional service environment and multi-brand environments. As of 2020 the company has 12 national e-commerce markets, 11 Direct Operating Stores (DOS) and 2,227 points of wholesale distribution. Driven by this expansion, alongside continued growth in the company's wholesale channel, total revenue increased to $958.1m million for fiscal 2020 from $403.8 million for fiscal 2017, at a Compound Annual Growth Rate (“CAGR”) of 43.4%.

2. Authentic and strong brand recognition: Canada Goose is an authentic brand that is inspired and informed by the demands of the Arctic for more than 60 years now. Since its inception the group has served explorers, scientists, athletes, and film crews embrace the elements in some of the harshest environments in the world. Canada Goose aspires to make products that work besides looking good, that inspire and enable people in all walks of life to engage with the outside world. Goose People, the company's brand ambassadors share their real stories through the unfiltered lens. The journeys, achievements, and attitudes of these incredible adventurers are so engaging and inspiring that it spontaneously influences the customers to chart their own course. Canada Goose enjoys a truly global demand and brand affinity in the coldest places on Earth to the world’s fashion capitals. Besides the company is also a pioneer in social entrepreneurship with Project Atigi collection designed and handmade by Inuit seamstresses. It is a Long-standing partner of Polar Bears International, with $3M+ of contributions to date and nearly 2M+ meters of fabric donated to northern communities through Resource Centres Program.

Weakness

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Opportunity

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Threat

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POLITICAL

1. Political uncertainty with increasing trade protectionism: International brands are finding it increasingly difficult to operate profitably in this current age of high political uncertainty and increased trade protectionism. The US China trade war is also having its effect on the Toronto based manufacturer of winter apparel, Canada Goose with the company shares seeing a drop of over 7% in January 2019. The company’s increasing dependence upon the Chinese market has also affected the company in the face of the worsening economic and political tensions surrounding China. The company has the upper- and middle-class Chinese consumer representing a major portion of bits international sales and Canada’s move of arresting Huawei chief financial officer, Meng Wanzhou, led to Chinese consumers boycotting the brand which resulted in severe financial impacts for the company. The North American Free Trade Agreement (NAFTA) being changed to Canada-United-States-Mexico Agreement (CUSMA) is also likely to affect the operations of the company.

ECONOMIC

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SOCIAL

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TECHNOLOGICAL

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LEGAL

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ENVIRONMENTAL

1. Multiple initiative for sustainable internal operations: Canada Goose has been striving towards incorporating sustainable practices in all its operations. It has been trying to find better ways to care for the world. It is guided by the philosophy of “Less Waste. Fewer Resources. More Reuse.” It is determined to achieve more with less and serve humanity along with nature. It is committed towards net zero direct and indirect greenhouse gas emissions by 2025 or sooner. It also pledges to eliminate single use plastics in all the facilities owned or controlled by end of 2020. It also commits to offset its annual carbon footprint by 200% on the journey till 2025.