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Canada Goose Inc. in the South Korean Market Case Study

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Updated: Jan 21st, 2021

Six important factors about the culture and four important factors about the ethic in the South Korean market

The Korean culture

In South Korea, business hours for retailers are longer than those of retailers in North American states. The shops in South Korea stay open for longer hours than the shops in North American states. This directly translates to increased daily sales and high monthly turnover. South Koreans mainly eat seafood, especially spam. This means that the major occupation in the country is fishing. As a result, there is a high demand for jackets, similar to those sold by Canada Goose. Korean food is the best slimming diet, and a study done on the diet of South Korea placed it at the top of all the best slimming diets (Batra, 1993). This information is very useful for Canada Goose, as they review the best fashion styling and fitting, that best suits the Korean market.

The country has a very big population and since it shares a border with China, they share cultures and similarities. The population of China is among the highest in the world and so is that of Korea. This means that the potential market for jackets is big. South Korea is joined to the rest of Asia by China, and they use either boats or airplanes to import and export goods to and from the country. The country resembles an island, and this has a definite influence on the expected costs of exporting products from Canada or Japan to Korea. English is taught in schools and they do not have a strict religious policy. The country has got Christians, Buddhists, and people from other religions, and this will have a direct effect on advertising and design considerations (Batra, 1993).

The market ethic

The South Korean market is not new to business deals with Canadian firms. For example, there is a recent deal that involved buying beef from a Canadian company, by a South Korean company, where both companies benefited a lot. The country has long business hours for shops because the shops close at half-past seven o’clock in the evening. Also, the banks open at half-past nine o’clock in the morning and close at four o’clock in the evening during weekdays.

There are counterfeit products sold in the market, and this demonstrates a lack of strict product monitoring policies and organizations. The counterfeit products reduce the sales made by the retailers who sell original goods. Bearing in mind the problems in production capacity in Canada Goose, these products threaten the growth strategy of the company. All the commonly used credit cards can comfortably buy goods and services in the Korean Market. This fact proves useful when considering how transactions in the country proceed (Schott, 2001).

List five advantages and five disadvantages for Canada Goose Inc. to enter this market and provide rational

The advantages

Increased sales

The CG company can take advantage of the growing population of South Korea (forty-nine million and ten million in Seoul, the capital city as of 2007) to make more sales in the Asian market. Despite the growing population, high growth was measured at six percent in 2010 and four percent in 2011. This was despite the worldwide recession experienced. The South Korean market is growing, and this is an advantage for individuals planning to trade there (Schott, 2001).

Increased turnover

The sales made in South Korea on average in a day, are high. This is evident because of the long shopping hours, high population, and high economic growth (Schott, 2001). Also, the Korean government’s trade policies, accommodate trade with Canada and Europe, which is evident in the previous dealings with Canadian firms (Schott, 2001). A free trade agreement by South Korea with the EU resulted in reduced import tariffs and reduced duties and taxes. South Korea has no natural resources and is the 10th largest importer in the world. The South Korean economy has overcome major economic crises, the key being the worldwide recession. South Korea has a low national (state) debt and high national reserves, which can cushion any economic emergencies (Schott, 2001).

The disadvantages

Risky international political zone

The country is located in the area of the world, with the heaviest military activity. The war with (communist) North Korea makes the country a place at risk of war (Schott, 2001). Also, the South Korean economy is a free trade economy, which always makes trade agreements with the parties that have the best deals (Schott, 2001). This places many competitors in the market and consequently reduces the section of the market controlled by each competitor.

Risk of losing out in the market to cheaper counterfeit products

The market does not have strict regulations to prevent counterfeit products, and these kinds of products dent the expected income for the CG Company. The country also faces the risk of losing originality in clothing design. The designs, when used in producing counterfeit jackets by counterfeiters in the Korean market, lose authenticity. Also, there is great competition from synthetic clothing products. In South Korea, there is no legislation governing the use of synthetic raw material in the manufacture of clothes. Consequently, the production of similar jackets may be less costly and in effect, more affordable.

SWOT Analysis


A strong client base in America, Japan, and Europe, provides a guaranteed income.

A strong brand name that has been in the market for a long time.

A reputation for making environmentally friendly products.

A visionary CEO (Dani), who has plans to expand the market for the business (Schott, 2001).


A low production capacity outmatched by demand.

Lack of jackets customized for the South Korean market.

Lack of a South Korean company representative.


A large market in Korea, due to the large population.

A chance to grow the business along with the fast-growing economy and population of South Korea.

A chance to change the location of the factory, to take advantage of cheap labor, and a stable economy (Schott, 2001).


The unpredictability of the open market often leads to unexpected policy (taxation, import, or export policies) changes that can lead to heavy losses or large profits (if the policy is in your favor).

There is a constant threat of attack from North Korea, due to a war between the two countries.

There is an increase in counterfeit jackets in the market (Schott, 2001).

Marketing Strategy

The CG strategy for marketing the products must involve a high profile entry into the market, in line with its target market, since CG is a brand for the affluent in society. Sponsoring magazine issues for airplanes and cruise ships to and from South Korea by CG comes across as a good idea. The marketing should target fashion shows, and the company should sponsor high profile events, such as tennis and golf tournaments, involving high profile individuals like American, Asian, and South Korean celebrities. If possible, CG marketers should secure tenders with the Korean government, to dress the high-ranking government officials. The following are the marketing components for the company.

Word of mouth

This is where an individual, who sees the product being worn by another person, enquires about it because he/she likes it and wants to own a similar one. The idea that the brand is associated with a select group of individuals of a specific ranking in society, makes the product exclusive, and this facilitates discriminative pricing. The best way to maintain the reputation of these products is by discrete advertising using word of mouth.


The company discreetly appeals to clients by advertising in magazines that it sponsors. The magazine should be made for the target market that CG intends to capture. In the magazine, previous events that CG sponsored are conclusively published to capture the attention of potential clients. Sponsoring high profile events such as fashion shows, tennis and golf tournaments, discreetly advertises the product to potential clients. Sports and the showbiz sectors have become very popular in today’s world, and many people are getting involved in sports and showbiz related activities. To advertise their products and popularize themselves to potential customers, many companies have been sponsoring sports events and showbiz related events, since many people are getting involved in sports and showbiz related activities. Through this, the companies have been able to increase their sales volumes, due to the expanded market.

Electronic media

The company should make use of TV and traditional electronic media, to advertise the CG product line. A deal with movie producers, agreeing to dress the cast in exchange for publicity, would work well. This ensures discreet advertising of products without affecting the brand’s reputation. Also, electronic media has a large and wide network; hence it reaches very many people. Adverts made through the use of electronic media are also more convincing to potential customers.

For example, TV advertisements are usually very persuasive to potential customers, because of the audiovisual appeal. In the modern world, the popularity of electronic media has been on the increase; hence this kind of advertisement has become very effective.

Should Canada Goose Inc. continue to manufacture its products in Canada?

The production of products is better done in Canada. The availability of raw materials for clothes makes this a better choice. Canada has cheap and readily available furs and the organic raw materials, used by the clothing industry. Secondly, the political stability of Canada as well as its location in the world provides growth without the risk of disruption by eminent fighting and war. Furthermore, Canada’s central position is to serve the company’s main markets (Europe and North America).

As a Junior International Specialist for CG Inc., you need to provide two other markets that Canada Goose Inc should consider entering

Russia and Scandinavia

Russia has cold weather patterns many times of the year. Above all, society is structured with the existence of a large middle and upper class in society. This translates into a market segment yet to explore. Furthermore, the country is easily accessible from Europe, where CG already has operations. The fashioning of the Jacket design does not need alteration, since the European and Russian clothing designs are very similar. Also, Scandinavia has a long cold season like Russia, and It is easily accessible through Europe, where CG already has operations. This makes it easy to run operations in Scandinavia from Europe, which is an untapped market.


Batra, R. (1993). The myth of free trade: a plan for America’s economic revival. New York: Scribner’s Sons.

Schott, J. J. (2001). Prospects for free trade in the Americas. Washington, DC: Peterson Institute.

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