You’ll
never guess who owns Canada Goose now
Summary
Bain
Capital, a private-equity firm co-founded by Mitt Romney, who became
famous for losing 2012 presidential election to Obama, is making a bid for
a majority stake in Canada's retail darling Canada Goose, a
maker of high-end winter jackets. Bain is known to squeeze
profits out of companies they acquired by stripping off parts deemed
non-performing non-profitable. Most of which will be oblivious to most
consumers. Dani Reiss will continues to run his company
with a minority stake.
Opinion
In his
recent video, Dani Reiss talks about his greatest lesson ever learned
was 'trust'. He says he has been too trusting in his
business. Dani then chose Bain Capital to expand Canada Goose in
Asia, specifically, China. By
charging as much as a thousand dollars for a ‘Made-in-Canada’ winter
jacket, Canada Goose has moved into the luxury market. Reiss
needed a company with business connections, deep pockets and a reputation
to boot to tackle China market.
Canada Goose is completely made in Canada. Reiss often describe
his business motto using the word authentic. Not surprisingly, Canada
Goose sued Sears for copycat their trademark jacket. China
loves luxury brand. How long do you think China, a mecca for
knockoffs to target Canada Goose? (If not already?) I believe Reiss made an excellent choice
by selecting Bain Capital to shoulder most of weight, allowing Reiss to
concentrate on what he does best, creating the brand. A brand that
has made his company a household name.
Not too shabby, when one of Canada's most powerful cabinet minister
invites Reiss to sit on his economic advisory council. When the
Prime Minister of Canada posted the tour he took at your Toronto
factory, Dani, you have arrived!
Questions
and Feedback
Do you
believe Dani Reiss made the right choice by signing with Bain
Capital? If yes, what would you think his challenges would be in his
fight against counterfeits in China?
References:
- Steve Kupferman (2014, December 10), You'll
never guess who owns Canada Goose now, Toronto Life, Column: RADOM STUFF, Associate
Editor at Toronto Life.com Twitter @SteveKupf, “Tags” Bain Capital, Canada Goose, Dani Reiss, Mitt Romney, RADOM
STUFF, Toronto Life. Retrieved
from URL: [Online Magazine] http://www.torontolife.com/style/random-stuff-goods/2013/12/10/bain-capital-canada-goose/
- Amina Ligaya (2013, December 10), MADE-IN-CANADA
still key for Canada Goose after sell to U.S. private-equity firm Bain,
CEO says, Financial Post, Column: Retail & Marketing, Reporter at
Financial Post, Twitter @arminaligaya, “Tags” Investing, Retail, Marketing, Bain Capital, Canada Goose,
Dani Reiss, Retrieved
from URL: [Online Newspaper] http://natpo.st/1fhdb6P
- Department of Finance Canada (2014, July 16), Harper
Government remains committed to strengthening the economy for all
Canadians, Finance Department: Minister Oliver Announces his Economic
Advisory Council, Retrieved from URL: http://www.fin.gc.ca/n14/14-093-eng.asp
Video/Images:
- johnr a.k.a. John Richardson (2013, March 1), In-Text
Citation: Goose Goose: Everyone in T. Dot wears the same dame coat, Toronto
Life, Column: RADOM STUFF, Retrieved from URL: [Video
file] http://youtu.be/2_tBxsXVlhs Twitter @johnrvideo
- Matthew Sherwood (2013, December 10), In-Text
Citation: Dani Reiss will remain president and chief executive of the
company that started in a small warehouse in Toronto 55 years ago, National Post,
embedded on Financial Post Column: Retail & Marketing, Retrieved
from URL: [Online Images] http://natpo.st/1fhdb6P
- Peter J. Thompson (2013, December 10), In-Text
Citation: None. (Hand full of Canada Goose circular patches) Financial
Post, Column: Retail & Marketing, National Post, embedded on Financial
Post Column: Retail & Marketing, Retrieved from URL: [Online Images] http://natpo.st/1fhdb6P
- Peter J. Thompson (2013, December 10), Financial
Post, Column: Retail & Marketing, In-Text Citation: Canada Goose
parkas on display, National Post, embedded on Financial Post Column:
Retail & Marketing, Retrieved from URL: [Online Images] http://natpo.st/1fhdb6P
- Stephen Harper, Prime Minister of Canada (2013,
November 8), In-Text Citation: Prime Minister Stephen Harper tours the
Canada Goose Inc. manufacturing facility, Retrieved from URL: [Online
Images] http://www.pm.gc.ca/eng/media/prime-minister-stephen-harper-tours-canada-goose-inc-manufacturing-facility