Making It with Jon Davids: Episode 180 - How This Family Business Blew Up the Industry | Canada Goose

Release Date: March 25, 2025
Host: Jon Davids (JD), CEO of Influicity
Podcast: Making It with Jon Davids

1. Introduction to Canada Goose’s Success

“There's this guy named Danny and he sells jackets. Last year he made a billion dollars doing it. He runs a company called Canada Goose.” [00:00]

Jon Davids opens Episode 180 by introducing the phenomenal success story of Canada Goose, a brand synonymous with high-quality, stylish winter jackets. JD sets the stage to delve into how this family-owned business transformed from modest beginnings into a billion-dollar empire, captivating both the fashion industry and consumers worldwide.

2. The Humble Beginnings: Metro Sportswear

Sam Tick founded Metro Sportswear in Toronto in 1957, focusing on heavy-duty coats, woolen vests, raincoats, and snowmobile suits. Initially catering to oil riggers, Arctic explorers, and winter sports enthusiasts, the company maintained steady growth, reaching approximately $2 million in annual revenue by 2001 under the leadership of Tick’s son-in-law, David Reese.

3. A New Vision: Danny Rees Takes the Helm

In 2001, Danny Rees became CEO, inheriting a business that had plateaued. Determined to invigorate the brand, Danny initiated a comprehensive rebranding strategy:

• Rebranding: Metro Sportswear was renamed to Canada Goose, a name that resonated more strongly with both Canadian heritage and global appeal.

“That's the story, guys. Let me know what you guys think.” [20:10]

4. Leveraging Hollywood and Celebrity Endorsements

Danny identified a lucrative subset of customers: Hollywood movie crews and celebrities who frequently donned their coats during shoots in frigid locations.

“Seeding is the practice of actually sending your product for free so that an influencer or a celebrity or a thought leader will wear it or showcase it in some way...” [05:30]

By strategically providing Canada Goose jackets to celebrities and ensuring their visibility both on-screen and off, the brand cultivated a powerful association between high-end fashion and functional excellence. This tactic led to increased brand desirability as celebrities like Jake Gyllenhaal, Rihanna, and Drake were frequently seen wearing Canada Goose.

A pivotal moment came in 2004 when the coat featured in the blockbuster film The Day After Tomorrow, propelling the brand into mainstream recognition.

5. Strategic Distribution and Exclusivity

Canada Goose maintained an exclusive distribution model, avoiding mass retail channels like Walmart or Target. Instead, the brand focused on high-end retailers such as Harrods, Saks, and Aspen ski shops. This approach reinforced the brand's premium image and ensured that Canada Goose products were perceived as luxurious and desirable.

“If you're trying to sell something high end... you sell it for $1000, $1500 or even more.” [06:45]

Key strategies included:

• Selective Retailing: Ensuring products were available only in upscale stores to maintain exclusivity.
• Minimal Branding: Utilizing a simple, iconic patch on the sleeve rather than overt logos, allowing for subtle yet effective brand recognition.
• No Discounting: Upholding full-price sales to preserve the brand’s premium status.

6. Pricing Strategy and Perceived Value

Canada Goose expertly leveraged pricing to influence consumer perception. By setting high price points, the brand signaled superior quality and exclusivity. This strategy ensured that customers associated the high cost with the product’s exceptional warmth, durability, and status.

“If I say, here’s a Rolex, you can buy it for $85, the first thing you're going to say is not, oh, awesome, I'll take that Rolex... what's wrong with that Rolex?” [07:50]

7. Creating Scarcity and Demand

The brand employed both manufactured scarcity and natural scarcity to heighten demand:

• Manufactured Scarcity: Limiting the number of jackets produced per style to create exclusivity. For example, limiting production to 50 jackets of a particular design ensures that each piece feels unique.

• Natural Scarcity: Utilizing time-bound offers or seasonal releases to maintain ongoing consumer interest and urgency.

“People want something that they can't really have.” [08:30]

These strategies led to long lines outside flagship stores in Toronto and New York, reinforcing the brand’s desirability and prestige.

8. Harnessing Customer Insights and Feedback

Canada Goose’s growth was fueled by a deep understanding of its customers. Danny Rees emphasized the importance of listening to influential customer segments—such as Hollywood crews—to tailor products that met their specific needs.

“There is no better way to grow your business than to find your best customer... and then just asking them.” [09:50]

By continuously engaging with customers, the company refined its offerings to better align with market demands, propelling sales from $2 million to $14 million within a decade and ultimately reaching $1 billion by 2020.

9. Front End vs. Back End Strategy

JD differentiates between the back end (the product itself) and the front end (the methods of bringing customers to the product). Canada Goose focused on expanding its front end through various channels:

• Strengthening Hollywood and celebrity partnerships.
• Expanding into international high-end markets such as Scandinavia and Japan.
• Opening flagship stores to create immersive brand experiences.

“If you're coming into the business with zero relationships and zero history and zero affinity, what would you do different today in your business...” [18:45]

This approach allowed Canada Goose to maximize its existing product’s potential without overcomplicating the business with unnecessary new products.

10. Lessons for Entrepreneurs and Business Builders

Jon Davids concludes with actionable insights for listeners:

• Think Small, Scale Intentionally: Focus on perfecting a single product and leveraging multiple avenues to market it effectively.
• Embrace Fresh Perspectives: Sometimes, bringing in new leadership or viewpoints can unlock untapped potential within a business.
• Utilize Strategic Scarcity and Pricing: Crafting the right perception around your product’s availability and value is crucial for premium positioning.
• Prioritize Strategic Distribution: Place your products where they enhance your brand image and reach the right audience.

“The biggest blocker in your business to growth... is you.” [15:20]

By adopting these principles, entrepreneurs can emulate Canada Goose’s success and drive substantial growth in their ventures.

11. Conclusion

Canada Goose’s transformation under Danny Rees exemplifies the power of strategic rebranding, targeted marketing, and maintaining brand integrity through exclusive distribution and pricing. Jon Davids highlights how a focused approach on understanding and expanding the front end can lead to remarkable business growth without the need to diversify excessively.

“Look no further than Canada Goose.” [20:10]

This episode serves as an inspiring blueprint for businesses aiming to elevate their brand and achieve significant market success.

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