What happened: Days before a three-way collaboration with BAPE and Concepts, Canada Goose is experiencing a media frenzy in China – for all the wrong reasons. Earlier this week, the winter clothing brand came under fire after refusing to reimburse a customer in Shanghai for a damaged parka, saying all products sold in its mainland retail stores are non-refundable. The customer, whose purchase was close to $ 1,800, complained of loose threads, an extra red line embroidered on the logo, and a pungent odor.
After the incident was posted online, the Shanghai Consumers Council accused Canada Goose of “bullying” customers and called in representatives for the brand to explain. On December 2, the luxury puffer jacket maker submitted a statement committing to offer refund or return services on all products sold in its mainland stores within 14 days of purchase (provided it there are issues with the craft) as well as implement a seven-day unconditional refund. policy for e-commerce orders. Another round of talks is expected next week.
The Jing socket: The big question that comes to my mind is, why doesn’t Canada Goose allow refunds in China? As one staff member said Beijing news, this is because consumers already have the option of checking out the items in person. In fact, when the aforementioned customer purchased her jacket, she had signed the brand’s exchange policy acknowledging that all products are “strictly non-refundable.”
However, this explanation – if you can call it that – has failed to appease Internet users. In addition to finding it difficult to return items, they also called the mark for “double standards,” noting that online purchases in global markets are eligible for refunds within 30 days of purchase instead of seven. only. As the Consumers Association of China wrote, “If you don’t do what you say, see yourself as a big brand, behave arrogantly and in a superior manner, adopt discriminatory policies, be patronizing and intimidating customers, you will for sure lose the trust of consumers and be let down by the market.
And Canada Goose cannot afford to lose the Chinese market. In the three months ending Sept. 26, sales have jumped nearly 20% thanks to its direct-to-consumer business in mainland China, which is up 86% from a year ago. But this latest controversy adds to a growing list of offenses there: just three months ago, the Toronto giant was fined $ 71,000 for false advertising.
While many luxury brands end up bouncing back in China after controversy, now is not a good time for Canada Goose. In the midst of its peak sales season, the news has ignited nationalist anger and calls for a boycott of the brand. Without a clear explanation of its refund policies, which the Shanghai Consumers Council still demands, and showing remorse, the parka maker could be the one to chill out this Christmas.
The takes jing reports on major news and presents our editorial team’s analysis of key implications for the luxury industry. In the recurring column, we analyze everything from product drops and mergers to heated debates arising on Chinese social media.