Reference no: EM132900528

Technology Helps Canada Goose Keep Flying High "Is It Real or Counterfeit?"

That's the title of a page at Canada-Goose.com where anyone can paste a URL and find out if it belongs to a legitimate reseller of the company's famous winter coats. Along with this high-tech approach, Canada Goose offers tips for spotting fakes-such as smelling the filling and checking for the hologram the company began sewing into its parkas in 2011. (The hologram features "images or elements that can be seen from different angles.") The website also provides links to police for people who discover they have accidentally bought knock-offs instead of the real thing. Founded in Toronto as Metro Sportswear in 1957, Canada Goose began as a manufacturer for other companies. When many other clothing manufacturers started moving their factories out of the country in the 1980s to make use of cheaper labour, the family-owned company wasn't ready to abandon its workers. Instead, by doing what it does better than any other company, Canada Goose has transformed itself to serve the high end of the market. Its parkas continue to be made in Canada-a key marketing point for a coat that sells for $1,400. The livelihoods of more than 1,000 Canadian employees rely on the quality reputation of the brand. Knock-offs diminish that reputation. The fake parkas are found all over the Internet. An unsuspecting buyer might think that the company is getting rid of its old stock somehow or that a retailer has gone out of business, but that's highly unlikely given the demand for the coats. Canada Goose revenues grew from less than $5 million in 2001 to over $200 million in 2014. That kind of revenue produces interest-unfortunately also interest from criminals and cheats. Fake Rolex watches have been around for decades. The fake watch business is so widespread that you can even find a shop outside the ruins of the ancient city of Ephesus in Turkey with a sign saying "Genuine Fake Watches." Of course, if you shop there you are not expecting the quality of Tag Heuer, Timex, or Rolex. When you shop online, whether it's for a Coach purse or a Canada Goose coat, you may think you are getting the real thing. If you are paying $700 for a $1,400 item, the price just seems like a good deal. Unfortunately, it may be as fake as the website. The Counterfeit Report website lists dozens of Canada Goose complaints from online shoppers and offers some tips. For example, authorized dealers of Canada Goose never sell the coats at a discounted price. So in addition to the high-tech solutions, such as the URL checker and the hologram, Canada Goose offers the consumer one more line of defence against the fake coat-if the price is below retail, it's not a real Canada Goose parka. The real Canada Goose coats have been worn comfortably in Northern Canada and in Antarctica. Dani Reiss, the CEO of Canada Goose and the grandson of the company's founder, says the greater worry for him is the possibility that someone might get hypothermia because they think they have bought a Canada Goose coat when they have actually got a cheap imitation.

Thinking Critically

1. How do you make decisions as to what websites to trust when you shop online? Have you ever bought something that wasn't what was advertised?

2. What other techniques do companies use to prevent counterfeiting? Do some Internet research to see what Rolex, Gucci, and other high-profile brands do.

3. The hologram is an obvious form of high-tech fraud prevention. What other techniques are available that would be more difficult for a counterfeiter to notice and copy?

4. Does technology make it easier or more difficult for fraudsters to steal from consumers? Explain.