Canada Goose forms joint venture with Sazaby League for Japan expansion
Toronto-based outerwear company Canada Goose announced on Wednesday that it is teaming up with its longstanding partner Sazaby League to create the joint venture, Canada Goose Japan.
The move is part of the company’s plans to accelerate its direct-to-consumer expansion in Japan, including retail stores across the country, and replaces a current national distributor arrangement between Sazaby League and Canada Goose.
Under the new agreement, as of April, existing distribution will be assumed by the joint venture, of which each partner will own 50 per cent. The existing distribution consists of a permanent Canada Goose retail store in Tokyo and a national e-commerce site, as well as wholesale points of distribution across Japan.
“Japan is one of the world’s largest and most influential luxury markets and has long been an important consumer market for Canada Goose,” said Dani Reiss, president and CEO, Canada Goose.
“This new agreement sets the stage for the acceleration of our growth in Japan, across both DTC and wholesale. We are excited to expand our existing operations with Sazaby League and know their successful history building strong consumer brands in the market will help drive us forward.”
Canada Goose expects the new operating model to significantly increase its revenue and gross profit per unit from the existing business. Canada Goose Japan expects to generate $60 to $65 million in total revenue in fiscal 2023 — roughly double the contribution from this market in fiscal 2022.
“We are proud to partner with Canada Goose and to be part of their continued growth in Japan,” said Yoji Hirai, CEO Canada Goose Japan. “Canada Goose is a global performance luxury lifestyle brand, known for their unparallel product and industry-leading sustainability commitments. We look forward continuing to tell their story in Japan and are excited about the future together.”
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