Canadian lifestyle brand Canada Goose Holdings has created a joint venture (JV) with its long-term partner, Sazaby League, to expand its business in Japan.
As part of the agreement, the companies will each own 50% of the Canada Goose Japan JV.
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From next month, the JV will replace an exclusive national distributor arrangement between Canada Goose and Sazaby League.
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.
In addition, Canada Goose plans to expedite its direct-to-consumer (DTC) expansion, including opening retail stores in the country.
Canada Goose president and CEO Dani Reiss said: “Japan is one of the world’s largest and most influential luxury markets and has long been an important consumer market for Canada Goose.
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By GlobalData“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 increase its revenue and gross profit for each unit compared with its existing business.
The JV expects to generate total revenues of between C$60m ($47.7m) and C$65m ($51.68m) in the next fiscal year (FY23).
Canada Goose Japan CEO Yoji Hirai said: “We are proud to partner with Canada Goose and to be part of their continued growth in Japan.
“Canada Goose is a global performance luxury lifestyle brand, known for their unparallel product and industry-leading sustainability commitments.
“We look forward to continuing to tell their story in Japan and are excited about the future together.”
Last year, Canada Goose announced plans to stop using animal fur in its products by the end of this year.
