Tuesday, November 17, 2009

Hudson's Bay: In the business of selling heritage

In light of the HBC's recent bad press over the outsourcing of Cowichan sweaters for the 2010 Vancouver Olympics, I felt the need to provide a different perspective in defence of our venerable trading company.

Despite what the media in general has made this out to be, the HBC didn't sell out Canada's Heritage. But yes, I won't pussyfoot around the fact that this was about making a quick buck off tourists in Vancouver who, in the spirit of the games, are overcome by an impulse to wear an ugly souvenir sweater. That tourist doesn't want a piece of Canadian heritage. That tourist wants a reasonably priced disposable souvenir. A Cowichan-like sweater made in China for $100 is just that. A $350 version made by a BC manufacturer? Maybe.

So, like any good business that smells a market full of suckers, the HBC sought to maximize profitability by outsourcing the manufacture of the low-end sweaters to China, and the high-end sweaters to a Canadian company. Not only is China capable of meeting the volume of demand, they're able to do it cheaply. Two key things that the Cowichans couldn't do - high volume, low cost. So, it's no wonder that the Cowichans didn't get the contract - they just can't deliver the goods.

Another thing, every apparel company out there is now pushing a Cowichan-like sweater. It's okay for American fucking Eagle to make a Cowichan-like sweater, but it's not okay for HBC? Let's stop hamstringing our own Canadian businesses, please - they've already got one foot in the proverbial economic grave.

The fact is, anyone who wants to spend the dollars to get a real Cowichan sweater can go ahead and buy one when they finally become available. There's no reason to deny the HBC access to the market full of people who want the sweater right now. Would we rather have the profits end up with another company? Because the profits wouldn't have gone to the Cowichans... they were unable to deliver the volume in the first place.

Fortunately, for HBC and the Cowichans, an outraged Canadian public has helped drive a market for genuine sweaters, in a classic case of fortuitous bad PR. Now, everyone wants a real Cowichan sweater, and is willing to shell out the cash for a piece of Canadian heritage.

Despite the fact that the sweaters are really ugly, I kinda want one now.

-d

5 comments:

Simon said...

HBC isn't even Canadian anymore. Why anyone cares is a mystery wrapped in an enigma.

Cammie said...

yea, i wanted roots to keep doing the olympic clothes cuz hbc designs are uglier. its funny though, i was just talking about finally buying a piece of olympic apparel this year since its actually in canada. haven't seen what they look like though, i may change my mind...and now dustin will yell at me if i go cheap haha.

Dust said...

I won't yell at you.

It's awesome for the 2 weeks during the olympics. After that, it's just plain unfashionable. Like, who still wears a Roots olympic beret???

The only thing that has lasting power are the mittens. And good luck finding those.

-d

ehbaba said...

I still wear my Roots 2004 Olympics jersey zip long-sleeve (can't remember what they're called but I think they were worn in the opening ceremonies). In some airport somewhere, someone asked me if I was in the Olympics! Priceless...

I didn't even know what a Cowichan sweater was. When I googled it, I recognized them but never knew they had a name or was made by a specific tribe...oops! They are pretty gross (just a slight step above the Crosby sweaters) but they might go well with my birkenstocks! haha

Dust said...

... if you also stopped washing your hair and shaving your legs, yes.