Sep
14
Foreign retailers attracted to “undercompeted” Canada
Posted by: admin | September 14, 2011 | Leave a Comment
Foreign clothing retailers such as Topshop and Eileen Fisher are beginning to open their stores to the Canadian market, particularly in Vancouver, since the Canadian market is less competitive compared to the ones in their home country. As a result, our market is seen as an opportunity for great economic growth.
I think that this is a great opportunity for foreign retailers to expand their businesses internationally. However it could be risky since the article states that this trend is “prompted not so much by consumer demand, but by foreign retailers on the lookout for greener fields like Canada.” Although Vancouver is a cosmopolitan city, I wouldn’t consider the majority of Vancouverites or Canadians as materialistic people who can afford to spend money on luxury items (e.g. clothing) every season. If one compares a mall in Vancouver with one in Los Angeles in any given day, the malls in Vancouver are infinitely less busy then ones in Los Angeles. In conclusion, foreign retailers would probably make large profits early on in the Canadian market but their sales will steadily cool off once they are well-established within Canadian society.