Canada Goose expects top-line growth of 60% this year based on hot sales of its trademark down feather parkas, but president and chief executive Dani Reiss said Friday that the made-in-Canada approach can't work for everyone.
Reiss told a Toronto business crowd at a luncheon hosted by the Economic Club of Canada that Canadian apparel manufacturing is on the rise again.
"People working in the fabric industry and different areas are all telling me their business is up. It's fantastic," he said.
Reiss suggested Canadian companies toying with the idea of returning production to home soil tear a page from the Canada Goose playbook.
From the start, Canada Goose understood its made-in-Canada gear couldn't compete on price.
"I think that it's more and more difficult to compete on the commodity level, for sure," he said. "For Canadian manufacturers it's important to look at value-added."
Canada Goose has build a cult-like following over the past 50 years, warming everyone from weather researchers working in the South Pole to A-list celebrities like Matt Damon. The jackets, with coyote-fur-trimmed hoods, typically retail for north of $500.
"Our belief is that everything that we make must be the best of its kind in the world," Reiss said.
"Without being the best, it's hard to be more expensive."
Roughly 10 years ago, Reiss -- a third-generation company president -- made the decision to keep Canada Goose made in Canada as well as source as many materials as possible in Canada, and it has paid dividends.
They company posted 85% growth last year, completely selling out of many of its most popular styles. Reiss projects growth of 60% this year and 50% for 2012 due almost entirely to increased production.
"To me, a Canada Goose jacket is like a Swiss watch - you can't make a Swiss watch in China. You can't make a Canada Goose jacket in China either."
The company has branched off into hats and gloves but doesn't have plans to expand its product lineup much further for the time being with discount moncler jackets.
"We have quite a long way to go before we have to start thinking about extending," he said, adding that there are still cold-weather markets in Asia he'd like to tap.
A shortage of skilled labour could also keep Canada Goose from broadening its product line.
Reiss said there's a lack of qualified sewers in the country, and the company has had to invest in intensive training for workers.
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