Canada Goose Holdings and its longtime Japanese partner Sazaby League Ltd. have reached an agreement to establish the Canada Goose Japan joint venture to accelerate DTC expansion, including retail stores. The agreement will replace an existing exclusive national distribution agreement between Sazaby League and the Canadian luxury outdoor brand. Beginning in April, distribution will be handled by the joint venture, in which each partner will own 50 percent. Current distribution includes a permanent Canada Goose retail store in Tokyo, a national e-commerce website and wholesale outlets across the country. The new operating model is expected to significantly increase sales and gross profit per unit from the existing business. Canada Goose Japan is expected to generate total sales of 60 to 65 million Canadian dollars in fiscal 2023, roughly double the contribution of that market in fiscal 2022.
“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 of 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.”
Retailer Sazaby League was founded in Tokyo in 1972 and carries around 40 brands, including originals such as Afternoon Tea, Agete, Estnation and licensed brands. The company operates more than 500 stores in Japan and internationally.
