BEIJING, December 2 (TMTPOST)— The U.S.-listed shares of Canada Goose Holdings Inc fell as much as 6% before settling more than 4% lower on Thursday after recent news showed the luxury parka maker’s way to handle the customer’s complaint triggered a serious reputational risk in the world's biggest luxury market.
Source: Visual China
The Shanghai Municipal Consumer Rights Protection Committee expressed dissatisfaction with Canada Goose’s written clarification about its policy of refunds and replacements, and will summon the brand again for a meet to resolve the public concern next week, China Central Television (CCTV) reported that day earlier. According to the report, the local watchdog believed the clarification was so “vacuous” and lack of details that it didn’t give a straight answer to major issues emerged from the recent complaint dispute. Canada Goose just introduced a policy about how it can give customers a refund or free replacement within seven days of purchase, without explaining why it didn’t follow the policy in markets outside China that can provide such free refund or replacement service for 30 days from the date of purchase, noted Tang Jiansheng, the vice secretary general of the committee.
The regulator’s move came after Canada Goose rejected a consumer’s request for replacement fanned the public wrath on the brand’s quality and after service which have long been in question in the China. On Tuesday, a commentary of the state media China National Radio criticized the brand’s “haughty” attitude to deal with a Shanghai customer’s complaint. It stressed the buyer paid RMB11,400 (US$1790) for a winterwear with several quality woes including a wrong embroidered, and to make matters worse, Canada Goose refused the replacement with terms that all the goods sold at stores in mainland China are non-refundable. The event soon went viral online and Canada Goose’s special policy in mainland China became the most searched term on China’s popular social media platform Weibo on Wednesday. The brand responded that day later with a statement that said either refund or replacement is available at mainland China-located stores. Then, the Shanghai city’s Consumer Rights Protection Committee held a meet with it about relevant replacement term’s fairness and reasonability.