Why Canada Goose won’t ever manufacture offshore

Canada Goose Chief Executive Dani Reiss can now say, with certainty, he made the right bet for his family's business when he shunned the offshore manufacturing trend some 10 years ago.

Reiss recalls reading the newspaper about two companies -- one Canadian, the other American -- outsourcing the work to Asia in order to slash costs. At the time, Canada's manufacturing sector was melting before his eyes, but Reiss thought if the company could tough it out and keep making its product at home it would one day be a huge competitive edge.

"I remember reading and thinking to myself ... 'Man, everyone is leaving. If we can only stick around for a while and make a go of it for the next five years we'll be the only ones left,'" says Reiss, who took over as boss in 2001. "I think it was a tremendous turning point for us."

Now, there's basically no turning back. The company's product and brand is deeply rooted in the ability to boast made-in-Canada. Asked if anyone ever still lobbies to manufacture offshore, Reiss quips: "Not anymore."

Why would they. The Toronto-headquartered company has enjoyed 3,500 per cent growth over the past decade and now sells its product in 44 countries. Reiss foresees 25 per cent growth this upcoming year with sales close to $150 million. While other retailers are forced to sell their offerings at steep bargains, it is difficult to find a Canada Goose jacket on sale.

This week, the company opened a new factory in Winnipeg, a sprawling 57,000 square feet facility that employs some 160 workers. More workers are expected to be hired. In total, the company employs 1,000 people.

The iconic down-filled parka with a price tag of $600-plus can be seen on a range of people from ordinary citizens to scientists living and working in the coldest places on earth.

Ken Wong, a marketing professor at Queen's University, said the most important factor is that the product is authentic and delivers what its makers promise.

"The product is a great product," says Wong. "No one who's ever put on a Canada Goose jacket says, 'I still feel cold.'"

Keeping its promise

Part of keeping its promises, though, means controlling how big the company gets. Reiss, 39, is still trying to find that sweet spot.

"The bigger you get, the harder it gets to manage a brand," he says. If the company can control distribution properly and keep close tabs on margins, as well as run a responsible business and build on a responsible brand, there is "a lot of runway left" for growth, Reiss adds.

The brand's following has widened in recent years. In some locales Canada Goose has become a symbol of urban chic, worn by ordinary citizens and celebrities. Most recently, and arguably most famously, model Kate Upton wore a Canada Goose jacket for the cover of the Sports Illustrated swimsuit edition.

For his part, Reiss is not concerned about the brand becoming too trendy.

"A company has to remember who they are and not get caught up on being trendy. People buy our stuff because it's real and authentic. People will keep buying our stuff as long as we're real and authentic," he says.

"We're a performance brand and a performance company. We make the warmest jackets on earth."