Can you name the top Canadian fashion brands? We are reviewing the top fashion brand’s online stores.
Fashion And Apparel Are Among The Top Growing E-Commerce Categories In Canada
Can you name the top Canadian fashion brands? We are reviewing the top fashion brand’s online stores.
It might find you by surprise how big the apparel industry is in Canada. We spend $5.8 billion dollars annually. (1) It is often underlooked, but it has an enormous potential for growth in the future especially the Omnichannel experience. (2)
Which are the most used eCommerce platforms by the top 5 Canadian Fashion brands?
The most surprising factor is that 4 out of the 5 use the Demandware eCommerce platform. It is interesting to see how the same platform is implemented across multiple stores but functions very differently. Demandware is a very powerful platform with the main advantage being its omnichannel capabilities.
It is a weird coincidence since only 1.2% (3) of the top stores worldwide use Demandware but 80% of the top Canadian apparel stores use regardless of its very high cost. (4)
eCommerce Platforms Market Share in March 2016 (3)
Demandware Cost Overview
Demandware customer that has annual sales between $20 million and $500 million (Demandware’s target client) can expect licensing fees starting from around $200,000 and in some cases closer to $700,000 a year and an additional $250,000 to $600,000 a year for other services. (5)
eCommerce Platform Pricing by Target Market Segment
| eCommerce Platform Breakdown | Shopify | Bigcommerce | Magento | Demandware |
|---|---|---|---|---|
| Target Persona | Micro and small business | Midmarket Business | Midmarket to Large Business | Large Enterprises |
| Value Metric | None/Flat Rate | Number of Orders | Support or Revenue Tier* | Percentage of Sales |
| Price about Competitors | Average | Low | High | Extremely High |
| Key Differentiator | Ease of implementation. Great for small business |
Best for emerging and established business | Customization Capabilities. Used by the most retailers | Shared Success Business Model** |
Annual License Fee Comparison By Platform and Retail Persona
| Annual License Subscription Fees Comparison Per Persona |
Shopify | Bigcommerce | Magento | Demandware |
|---|---|---|---|---|
| Persona 1 250K Annual Revenue |
$11,940 $2,148 |
$2,388 | $18,000 | N/A |
| Persona 2 5M Annual Revenue |
$11,940 | $6,000 | $24,000* | $50,000** |
| Persona 1 20M Annual Revenue |
$48,000 | $24,000 | $70,000* | $200,000** |
* There are no fees for the Magento Community Edition license. Merchants have to pay for the support, maintenance, and the server hosting. Magento introduced tier pricing based on revenue for the Enterprise Edition subscription. The minimum price is US$24k per annum and does not include hosting. The price increases with each online sales value tier. Customers also have to pay separately for the Magento hosting. The Magento customization flexibility makes the hosting more expensive. Magento needs extra computing power to support fast search, dynamic page building, and extensions.
** Demandware applies the concept of “shared success” in their pricing model and they tied their performance (revenue) to the retailer performance (gross merchant value).
Top 5 Online Canadian Fashion Brands Review
Hershel
Hershel is a lifestyles brand of finest quality backpacks, bags, travel goods, accessories and limited types of clothing. It is more of a niche brand that is starting to gain momentum in the marketplace.
It is the smallest brand we are reviewing. They are planning a big expansion but its success is till be seen. (6)
Year established
2009
Public/Private
Private
Head Quarters
Vancouver
Online Platform
Shopify
Omnichannel
There are no brand specific physical stores for this brand. Their merchandise is available at the selected stores.
Customer Service
No easy way to find the customer service phone number, requests are directed to a form
Return Policy
Customers are responsible for the return shipping cost
Stand Out Features
Top Navigation – really original and cool to navigate
Disappointing Features
Search – impossible to narrow down your search with filters
Canada Goose
Since being acquired by a U.S. private equity firm the brand is poised for a massive expansion including opening own retail stores.
Year established
1957
Public/Private
In December 2013, Boston-based private equity firm Bain Capital bought a majority stake in Canada Goose for an estimated $250 million. (7)
Head Quarters
Toronto
Online Platform
Demandware
Omnichannel
They are starting to open physical stores but there is no click and collect options.
Customer Service
Many options of contact are available including address, phone, and email. There are also different types of contact options for warranty and online orders.
Return Policy
Free shipping and returns
Stand Out Features
Size finder is extremely well done.
Disappointing Features
Find it in store features does not actually show any inventory available it just shows the closest stores that sell Canada Goose products.
Sorrel
Has gained back popularity in the last few year. Unfortunately, the brand has not been owned by a Canadian company for the last 16 years.
Year established
1962
Public/Private
In 2000 bought by Columbia Sportswear.
Head Quarters
Kitchener
Online Platform
Demandware
Omnichannel
There are no brand specific physical stores for this brand. Their merchandise is available at selected stores.
Customer Service
Very prominent and contact is encouraged through the site
Return Policy
Paid Shipping and Returns
Stand Out Features
Social Integration into product page from Instagram that showcases everyday people wearing the product
Disappointing Features
Find a store – it could not locate a store near the postal code I have typed. I know that there is a store nearby that sells Sorel products.
Aritzia
It is the most interesting company. They are not only a retailer but also a company that created many own fashion brands that they sell only in their stores.
Year established
1984
Public/Private
Public in October 2016
Head Quarters
Vancouver
Online Platform
Demandware
Omnichannel
It is shocking to see that there is no online pick up options from this retailer. They have a lot of stores and could easily arrange the popular “click and collect” option for the majority of its products.
Customer Service
Contact number can only be found at the bottom of the page in tiny print, but there is a sticky menu that allows viewing FAQs and additional contact information.
Return Policy
Paid Shipping and Returns
Stand Out Features
“What are you wearing” which allows seeing all the products that are featured in the same picture so that the shopper can always buy the additional items.
Disappointing Features
Size information – there should be a much more comprehensive size guide especially since they carry their custom brands
Roots
It is one of the few Canadian retailers that offers a True Omnichannel Experience. It is definitely among the most innovative retail brands in Canada.
Year established
1973
Public/Private
Private, majority of the stake is now held by Searchlight Capital based in the UK.
Head Quarters
Toronto
Online Platform
Demandware
Omnichannel
It provides omnichannel experience. You can buy something online and pick it up in the store. You can even see the quantity available which is so convenient when you are looking for a particular item and size.
Customer Service
Very prominent and found through the site, including the checkout process which is very convenient to solve any last minute issue.
Return Policy
Customer responsible for shipping cost or the merchandise can be returned to the store.
Stand Out Features
Click & Collect. It is certainly good to give the shopper options for purchasing items online and pick up in-store. A lot of time you want to try something on, but they might not have your size. This feature guarantees the product availability.
Disappointing Features
Available product description information is limited and the sizing chart is very basic.
Top 5 surprising things majority of brands have in common
- Use Demandware eCommerce platform
- Do not have or provide limited omnichannel experience
- Originated more than 30 years ago
- Received outside funding to grow the business
- Ship outside of Canada
Fashion is ever changing but always relevant. There are plenty of amazing Canadian brands that could become a Global leader by having great online stores. To adapt to the tastes of the new generations for more than one season innovation in design is not enough. The brands should invest in a real Omnichannel experience to able to reach the mass market and stay relevant.
References
- Why Is Canada Killing Its Fashion Industry?, http://www.huffingtonpost.com/jedannah-vieira/why-is-canada-destroying-_b_10917714.html
- An exclusive snapshot of Canadian e-commerce by the numbers, https://www.canadapost.ca/web/en/blogs/business/details.page?article=2016/02/29/snapshot_of_canadian&cattype=business&cat=shipping
- Magento, WooCommerce Lead Ecommerce Platform Market Share: Report, https://www.thewhir.com/web-hosting-news/magento-woocommerce-lead-ecommerce-platform-market-share-report
- MAGENTO ENTERPRISE VS DEMANDWARE – ECOMMERCE PLATFORM COMPARISON, https://paulnrogers.com/magento-enterprise-vs-demandware-ecommerce-platform-comparison/
- SaaS Pricing Teardown: Ecommerce Platforms, http://www.priceintelligently.com/blog/ecommerce-platform-pricing-bigcommerce-shopify-magento-demandware
- How Vancouver’s achingly hip Herschel Supply Co. backpack became so ubiquitous, http://business.financialpost.com/executive/c-suite/how-vancouvers-achingly-hip-herschel-supply-co-backpack-became-so-ubiquitous
- Canada Goose (clothing), https://en.wikipedia.org/wiki/Canada_Goose_(clothing)
