Canada Goose’s stock plummets amidst Canada-China dispute
With Canada caught in the crossfire of a technology and trade war, consumers in China are being encouraged by Chinese media to boycott Canada Goose.
It’s being viewed as retaliation for Canada’s role in arresting Huawei’s Chief Financial Officer Meng Wanzhou.
“They know that this is a national champion, it’s a great Canadian company, it’s owned by Canadians and they’re at the cusp of enormous growth in China so they picked a company where the timing couldn’t be worse,” said Bruce Winder, one of the founders of the Canada Retail Advisers Network.
WATCH: Huawei CFO case strains relationship between Canada and China
Over the summer, Canada goose announced plans to open two stores and a regional headquarters in Shanghai.
The largest Canada Goose manufacturing plant is in Winnipeg, where the company aims to employ 1,700 workers in the next few years.
Global News reached out to Canada Goose for comment but have not yet received a response.
“Because of the number of affluent consumers in China, which would be in the tens or hundreds of millions, Canada Goose can’t mess up the whole China play and expansion,” Winder continued.
Since Wanzhou’s arrest, Canada Goose shares have seen massive losses.
Among big expansion plans in Asia, a Winnipeg World Trade Centre Advisor, Mariette Mulaire said Canada Goose should stay the course, and weather the political storm.
“Up to what point will this really have an effect on the bottom line for businesses is still out there, we don’t know,” Mulaire said.
It’s that kind of uncertainty many other Canadian businesses are also facing.
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