SOURCE / COMPANIES
Canada Goose delays store opening in Beijing as consumers protest Huawei arrest
Published: Dec 16, 2018 09:03 PM

Logos of Canada Goose are covered up at the entrance of its store in Sanlitun, Beijing on Saturday. Photo: Zhang Hongpei/GT



The debut of the first brick-and-mortar store of Canada Goose in the Chinese mainland was delayed from Saturday amid tensions between China and Canada.

The market generally attributed the postponement to the ongoing tensions between China and Canada over the arrest of a senior executive of Huawei.

According to the customer service office of Canada Goose's online flagship store on Alibaba's Tmall platform, they were informed that the store in the north area of Sanlitun in Beijing will be opened around the end of December.

In a reply to a netizen on the official Weibo account of Canada Goose on Friday, the retailer said the delay was due to construction work. However, it is generally assumed that construction is an excuse and the delay is related to Huawei CFO Meng Wanzhou's arrest in Canada early in December, which has reportedly caused some people to boycott the brand in the Chinese market.

Some Weibo users said it was wise for the brand to delay its opening at this sensitive moment. The Global Times found the distinctive logo of Canada Goose had been covered up at the entrance of the store in Sanlitun on Saturday. Some clothing was already displayed on the second floor of the store, and this could be seen by looking through the window. Ad boards that had information about the store's opening had been removed.

The parka brand took off in China in recent years since celebrities including Alibaba's founder Jack Ma Yun and China-based Victoria's Secret fashion show model He Sui have worn the coats in public.

In May, Canada Goose announced a big step in investing in China via a regional headquarters in Shanghai, flagship stores in Beijing and Hong Kong, as well as an e-commerce store on Tmall in September. The Hong Kong outlet was opened in October.

During this year's Singles' Shopping Festival on November 11, Canada Goose's transaction volume was 10 million yuan ($1.45 million) within about one hour after sales kicked off.

However, the coat company's shares have obviously been hit by likely boycotts among Chinese consumers over the Huawei case.

As of Friday's closing, shares of the Toronto-based company had plunged 26 percent in eight trading days on the New York Stock Exchange since December 4, losing $2 billion in market cap, media reports said.

In comparison with the troubles of Canada Goose as reflected in the capital market, domestic down brand Bosideng saw its shares rise 6.58 percent on Tuesday, a record price since November 2013.

The Canadian luxury retailer has to deal with pressure from its competitors in the winter jacket segment.

As the Global Times observed in the north area of Sanlitun on Saturday, Canada Goose's strong competitor - Italian fashion brand Moncler, located not far from the Canada Goose store - had a dozen Chinese consumers who were trying on or buying its popular jackets.