People In China Are Boycotting Canada Goose And Their Stock Is Taking A Dramatic Hit
The Canadian company has seen a serious fall from grace in the stock market in the past week.
Over the past few years, Canada Goose has catapulted itself into being one of the most sought-after brands of luxury winter outerwear. As a result of local popularity in Canada, the company has been able to expand past just North America into markets such as London, Hong Kong and Japan.
While the coats have been a fan favourite in Hong Kong and Japan regardless of their significantly warmer climates in comparison to Canada's harsh winters, Canada Goose has seen a very rapid dip in their stock. The culprits of that dip are none other than Canada Goose's previous number one fans in Asia.
The dip hasn't been small either, with Canada Goose Holdings Inc. seeing a 20% dip over the course of only four days. A different parka company, Bosideng International Holdings Ltd, from Hong Kong, on the other hand, has seen their stock rise 13% in the past few years to a new high for the company for the first time in five years.
Canada Goose's dipping stock and Bosideng International's rising value aren't a coincidence. In fact, the market activity in the case of these two companies comes as a result of what happened earlier this week regarding Meng Wanzhou, an executive at Huawei getting detained in Vancouver.
It turns out it's not just the Chinese government that is currently angry with Canada over the arrest, but locals as well. So they're making it known where they can by not supporting Canadian products, including Canada Goose. It's definitely clear they aren't kidding around either considering Canada Goose's stock is seriously suffering as a result.
While it will be a while until Canadians will see the final results of the entire Huawei controversy that is currently causing the divide between Canada and China, it's definitely interesting that a parka company has found themselves caught in the crossfire.
Considering the company just invested in turning their changing rooms into freezers to accommodate their customers shopping in warmer areas of the world such as Asia, it's safe to say Canada Goose probably isn't very happy about this.
Source: Financial Post