Canada Goose and Shinola are two brands that set out to make it big in the retail market. But while one achieved remarkable success and soared to new heights, the other couldn’t seem to get off the ground and soon sputtered out. In this podcast, Kellogg Insight takes a deep dive into the stories behind these two companies to find out why Canada Goose did so well while Shinola didn’t. Put on your earbuds and join them in unlocking the secrets of retail success.
1. Exploring the Hype Around Canada Goose and Shinola
- Canada Goose: Canada Goose is a highly coveted brand in the fashion and outwear world. While the popular Parka jackets are by far the most recognizable items created by the company, they offer a variety of outerwear options, ranging from winter-ready insulated jackets to stylish dress-wear. People who sport the bold red logo can attest to the quality of their products, with many being advocates of their long-lasting materials and investments.
- Shinola: Shinola
is a Detroit-based company that creates a wide variety of products—ranging from watches, leather goods, bicycles, and audio devices. From its inception, the brand quickly rose to fame and has developed a strong reputation for its durable materials and stylish designs. Many Shinola pieces are considered go-to staples for any wardrobe, offering a unique take on timeless pieces.
Though both of these brands are aiming their offerings towards different lifestyles, they both manage to capture an air of stylish elegance. Canada Goose can take its wearers from winter’s chill to the bustling streets with ease, while Shinola works hand-in-hand with wearers to build a set of luxury staples that will stand the test of time. When it comes to style and quality, these two brands consistently come out ahead of the pack.
2. Examining How the Two Companies Managed to Drive Growth
A closer look reveals what both companies did that enabled them to experience such a high rate of growth. Analytics were used to glean insight into how consumers behaved within each respective market, page optimization techniques were implemented to maximize user experience, and positive relationships were developed with partners and stakeholders.
Through data-driven decision-making, crucial strategic steps were taken to capitalize on the details that were collected, and systematically applied to increase value for the companies. Primarily, they focused on:
- Identifying customer segments
- Targeting the right markets
- Measuring usage in order to identify trends
- Optimizing processes to improve customer engagement, satisfaction, and retention
- Accessing new channels of distribution to reach potential customers
The strategies worked. User acquisitions grew exponentially, and with the implementation of targeted marketing campaigns, subscription and revenue models showed a significant spike. Additionally, log-in times decreased, user-interaction times increased, and the user-experience became smoother. The rising popularity of their products was evidence that there had been a considerable improvement of their functions and offerings.
3. Uncovering the Reasons for Canada Goose’s Unprecedented Success
Canada Goose has become one of the most recognizable fashion brands in the world. But how did such a small Canadian business achieve such international success? Let’s take a closer look at the strategies that have helped the brand turn into a global phenomenon.
- Luxurious Apparel: Canada Goose produces some of the most luxurious and well-crafted jackets available on the market, making them indispensable for outdoor adventurers and fashionistas alike. Quality materials like down and fur inserts ensure that the jackets are able to keep the wearer warm even in the chilliest winter weather.
- High-Profile Collaborations: The company is no stranger to high-profile projects, as evidenced by its collaborations with top design names like Pharrell Williams and Stella McCartney. Such partnerships bring an air of prestige to the brand and help keep Canada Goose in the spotlight.
- Focus on High-End Markets: While many fashion brands are content to churn out endless variants of the same basic designs in an effort to appeal to a wider audience, Canada Goose has made a point of staying focused on the luxury market. This has allowed them to cement their reputation as a leader in the industry, as well as attract customers who can afford their higher-end designs.
- Shinola attempted to transform itself from a watch maker into a tech business
- They lacked seamless distribution and marketing strategies
- Shinola had fewer varieties to choose from compared to its competitors
- Shinola offering quick delivery of “luxury” products failed to capture the essence of traditional craftsmanship
By utilizing these strategies, Canada Goose has been able to remain on top of the fashion industry and show no signs of slowing down. From chic collaborations to stylish designs, the brand has been able to make a name for itself on the global scene and maintain its status as one of the most coveted labels out there.
4. Analyzing Why Shinola Failed to Take Off Despite Intense Investing
Shinola’s Failure to Catch-up
Shinola had made investments that were aimed at positioning the brand in a different market, which might have been the cause for its failed growth. It placed a focus on pricey consumer electronics and attempted to transform itself from a watch maker into a tech business. One possible explanation could be the lack of seamless distribution and marketing strategies. Shinola had to outsource their marketing to a third-party, because their own strategy was too plain, helping them lose traction and awareness. Their collaboration with an NBA start and attempt to tap into the sneaker market could have alienated their customers.
Apart from being ill-equipped in marketing, Shinola’s product offerings were also inadequate. Unlike its competitors, it had fewer varieties to choose from. For instance, according to Business of Fashion, Shinola offered only two types of sneakers while competing brands were offering many more. Further, some have argued that Shinola’s quick-delivery of products that were perceived as “Luxury” put down the traditional craftsmanship associated with the original Shinola.
One thing is for sure: understanding the rise and fall of companies like Canada Goose and Shinola is a valuable exercise for anyone looking to make an impact within the marketplace. By studying their successes and missteps, it is possible to learn the keys to business success, no matter the market. As podcast host Ju-Young puts it, industry trends “can change in an instant.” To remain competitive and secure a successful future, companies must pay close attention to the nuances of the marketplace and stay ahead of the curve.