Header photo source: Edwin Zhang via Moose Knuckles.
“You won’t find authentic clothes like this unless you’re in Canada.”
The remark came as “L,” a cross-border trader speaking to 36Kr, swiped through recent WeChat orders. Among them, a ski jacket from Moose Knuckles—a Canadian luxury outerwear brand—was destined for a customer’s trip to the Daxing’anling mountains. The buyer later shared a photo grid, prominently featuring the brand’s scissor-like logo on the sleeve.
Founded on the rugged appeal of Canadian winters, Moose Knuckles has carved a niche in luxury outerwear. Following a 2019 minority equity investment led by Cathay Capital, the brand has capitalized on outdoor fashion trends, gaining prominence on platforms like Xiaohongshu. However, despite its increasing visibility, it still lags behind Canada Goose in sales.
In October 2024, Moose Knuckles’ expansion plans took a significant leap when Cathay Capital introduced Chinese apparel powerhouse Bosideng as a co-investor. With this move, Bosideng acquired over 30% of Moose Knuckles, becoming its largest shareholder. “Our collaboration with Bosideng will be a catalyst for our growth in Asia,” said Victor Luis, executive chairman of Moose Knuckles, highlighting the strategic importance of the partnership.
Currently, Moose Knuckles operates 36 stores outside Canada.
A fashion industry analyst told 36Kr that Bosideng’s acquisition of Moose Knuckles might stem from its ongoing struggle to elevate its core brand to a high-end market position. As premium down jacket brands like Canada Goose gained traction in China, Bosideng embarked on its high-end transformation in 2018. Despite promoting a year-round development strategy, the company’s premiumization efforts remain heavily reliant on winter apparel, with down jackets driving price increases. Bosideng CFO Zhu Gaofeng has publicly stated the company’s goal of raising the average price of its down jackets to over RMB 2,000 (USD 280).
By 2023, however, consumer preferences shifted toward greater price-performance value. During the 2024 Singles’ Day shopping festival, a shiny puffer jacket from Guvet—evoking Moncler’s designs—became a breakout hit, priced at RMB 1,599 (USD 223.9) in its Douyin flagship store and selling 57,000 units.
Raising the price of down jackets has proven more challenging than Bosideng anticipated. In its 2023–2024 fiscal year, the company’s gross profit margin dropped by 1.2 percentage points to 65%.
In contrast, outdoor apparel has emerged as a rapidly growing and lucrative segment. During the 2024 Singles’ Day, outdoor gear stood out as a key highlight in the fashion category, with high-end products priced over RMB 10,000 (USD 1,400) experiencing the fastest growth.
While down jackets provide warmth, they are not suitable for most outdoor activities. For instance, ski jackets prioritize windproofing and breathability in their outer layers, with synthetic insulation inside. They are lightweight, allow free movement, and wick moisture efficiently. In contrast, down jackets tend to be bulkier, lack waterproofing, and have inferior breathability, making them less practical for outdoor sports. Naturally, Bosideng, with its high-end aspirations, has also set its sights on this market.
The analyst further noted that Bosideng has a history of acquiring lesser-known brands, none of which have succeeded in gaining traction. By acquiring a well-established, high-end outdoor brand like Moose Knuckles, the company may finally have a chance to shift its fortunes.
36Kr has learned that traditional sportswear giants like Nike and Adidas are also eyeing the high-margin outdoor market, though their approach is to develop their own products rather than acquire established brands. In contrast, Chinese companies have been more ambitious in bidding for such brands. On December 11, 2024, news surfaced that Chinese apparel company Baoxiniao is set to acquire Woolrich, a high-end American outdoor brand. Around 70% of Woolrich’s sales fall in the range of EUR 600–1,000 (USD 624–1040). Baoxiniao previously announced in its financial report that it had allocated RMB 400 million (USD 56 million) for mergers and acquisitions.
Outdoor fashion, which gained significant momentum in 2017, has sustained its appeal for eight years. This is no mean feat in a consumer culture that thrives on constant novelty, and this enduring popularity can be attributed to the professional and technological merits of outdoor products.
In the 1960s, affluent middle-class families in Europe and North America, disillusioned with urban life, turned to nature for solace. This shift fueled the demand for functional apparel designed specifically for outdoor activities. Brands like Arc’teryx, Patagonia, The North Face, Teva, Columbia, and Birkenstock emerged during this time, valued for their technical features rather than their aesthetics. By the 1990s, Japanese designers began blending functionality with fashion, laying the groundwork for the outdoor styles prevalent today.
Arc’teryx, The North Face, and Mammut, once niche brands adored by outdoor enthusiasts, have since charted distinct courses. The North Face and Mammut entered the Chinese market more than a decade ago but have struggled to establish a strong foothold. Both brands changed distributors in 2024, effectively resetting their operations. Meanwhile, Arc’teryx, under the stewardship of industrial capital heavyweight Anta, has transcended its niche roots to become a coveted status symbol among business leaders. Its parent company, Amer Sports, has delivered double-digit growth in Greater China for consecutive quarters since going public, showcasing Arc’teryx’s rising prominence in the region.
RELATED ARTICLE
Achim Loeffler, global business leader at Gore-Tex, renowned for its waterproof and breathable membranes, told 36Kr that more Chinese clothing companies are showing interest in advanced materials like Gore-Tex. “Previously, our clients were primarily international brands like Nike and Adidas. Now, more local brands are collaborating with us, such as Bosideng and Kailas,” Loeffler said.
Waterproof and breathable membranes are the cornerstone of outdoor jacket fabrics. A high-quality jacket not only insulates but also expels moisture vapor to prevent hypothermia in extreme conditions. With a 70% market share in waterproof membranes, Gore-Tex garments are known for their high price points. “We only target the high-end market,” Loeffler said.
During a recent visit to China, Loeffler met with companies such as Kailas and noted shifting demands among Chinese partners. They are seeking shorter development cycles, a broader range of textiles, increased customization, and faster delivery times to remain competitive in the market.
Swedish outdoor group Fenix Outdoor’s Fjallraven brand has also accelerated its store openings in China through its long-time local distributor, Yangzhou Jinquan. Recently, Fjallraven renewed its partnership with Gore-Tex, leveraging a fluorine-free material developed by Gore-Tex to align with its strict environmental standards.
Whether through technological advancements or sustainability efforts, the vitality of a market is often defined by its capacity for innovation. While Bosideng may have entered the high-end outdoor apparel race later than competitors like Anta, the growing demand for premium functional clothing provides ample opportunities for expansion. Leveraging Moose Knuckles’ established reputation and craftsmanship, Bosideng seeks to address its current challenges in the luxury segment.
However, the company faces a delicate balancing act: preserving Moose Knuckles’ brand identity while managing costs effectively and safeguarding its prestige post-acquisition. Moose Knuckles’ appeal in Canada is rooted in its use of rare materials and distinctive designs, with its fox fur–trimmed hoods standing out as an iconic feature.
As “L” noted: “If they switch to other materials, they might still sell, but maintaining a sense of professionalism and exclusivity will depend on Bosideng’s finesse.”
KrASIA Connection features translated and adapted content that was originally published by 36Kr. This article was written by He Zhexin for 36Kr.