Chinese Shoppers Are Boycotting Canada Goose
Since its launch, Canada Goose has been one of the most popular outerwear brands. Despite some controversies, the brand has seen steady growth — going from hard-to-find and sold-out-in-seconds, to being sold in every major luxury retailer, as well as its own stores that see lineups out the door.
Canada Goose shares have been down five days in a row.
CBC News reports that Canada Goose shares have lost 20% of its value in less than a week. And the reasoning behind why actually has very little to do with the brand itself.
Chinese consumers have vowed to boycott Canada Goose after the daughter of a Chinese business magnate was detained in Vancouver.
Meng Wanzhou is the daughter of Huawei Technologies’ founder. She is also the chief financial officer of the company. Recently, she was detained by Canadian police during a layover in Vancouver. The detainment came at the request of U.S. authorities, and Wanzhou is being charged with “conspiracy to defraud multiple international institutions.”
The list of allegations is made up of multiple charges, each carrying a maximum sentence of 30 years in prison.
As word of the arrest travelled, users on Chinese social media site Weibo proposed to boycott Canada Goose.
The boycott was proposed as retaliation for Wanzhou’s detention in Canada. However, the movement only really picked up when Global Times, a Chinese state-run newspaper, reported on the boycott.
According to retail consultant Bruce Winder, “the state is going to use whatever it can from an [influence] standpoint to get its citizenry mobilized.” And right now, that means going after a recognizably Canadian company.
What does this mean for Canada Goose?
With net profit jumping over 60% in its fiscal third quarter, should the Canadian-made brand be worried?
According to Bloomberg analysts Deborah Aitken and Maxime Boucher, no. In fact, the two believe that the boycott will blow over soon, also noting that the Chinese market only makes up about 10% of Canada Goose’s global sales. While the future is uncertain, it’s likely Canada Goose will continue its steady growth.
But for now, we’ll just have to wait and see if there’s any damage done to Canada’s national treasure.