International Trade Committee on Nov. 24th, 2016

[Josh Fine]

Yes, and we've worked with the Trade Commissioner Service. We've done trade shows in Germany in particular. It has one of the largest European footwear shows. Our brand does really resonate. Overall, yes, consumers like our goods. The challenges have been with the costs of opening those new markets.

[Gerry Ritz, Conservative, Battlefords—Lloydminster, SK]

Right. There are the economies of scale.

[Josh Fine]

Yes, it's really a matter of scale, and that's where e-commerce is really changing that. Even the cost of entering the U.S. in a serious way on the retail front is something that we as a small business can't afford, but e-commerce has changed that, so it's a really successful piece for us.

I'd like to see CETA break down the tariff and non-tariff barriers with regard to consumer purchasing via e-commerce, and not just apply to big businesses.

[Gerry Ritz, Conservative, Battlefords—Lloydminster, SK]

We'll see the Josh Fine site in Winnipeg going head to head with Jack Ma and Alibaba at some point That's something to shoot for.

There's a tremendous amount of potential throughout this agreement. Trade draws trade. It also draws investment from other countries, using Canada as a portal into the European market.

Karl, do you see any advantage, or do you see any products coming into Canada being further processed? You're talking retail, but you have access into the wholesale side too. Do you see the potential of retail going to Europe as well?

[Karl Littler]

Prospectively it could, if we were to gain enough scale, especially obviously in the online commerce space.

[Gerry Ritz, Conservative, Battlefords—Lloydminster, SK]

That's on specific products.

[Karl Littler]

Yes, and that would require working quite closely with our manufacturers. Currently some are both manufacturers and vendors. Canada Goose is a case in point. There's more of a trend in that direction whereby manufacturers are leveraging their brand presence into a retail offering. It's moving up the scale, if you like.

[The Chair, Liberal, Mark Eyking]

I don't think there's enough time. You have only 10 seconds.

[Gerry Ritz, Conservative, Battlefords—Lloydminster, SK]

Thanks.

[The Chair, Liberal, Mark Eyking]

Save your thought for Mr. Van Kesteren. Maybe he can ask the question. We're going to have to move over to the Liberals now.

Ms. Ludwig, you have the floor for five minutes. Go ahead.

[Karen Ludwig, Liberal, New Brunswick Southwest, NB]

Good morning, all of you. Thank you for your excellent presentations.

I'm going to be a little more focused than my colleagues were with Ms. Pohlmann and Mr. Fine, specifically on the area of trade preparation. I have quite a few questions.

Mr. Fine, after listening to Ms. Pohlmann's presentation—which was excellent—I'm wondering how you first found out about opportunities to buy and sell goods and services to the EU. Was it through business contacts? Was there a government contact?

[Josh Fine]

It was through business contacts. My background is actually working with Canada Goose, so it was really some of that experience and history that led me to pursue those markets.

[Karen Ludwig, Liberal, New Brunswick Southwest, NB]

Thank you.

Listening to your presentations and your responses to the questions, I see that you clearly understand trade. Did you gain your training primarily through working at Canada Goose, or do you have a background that involved studying trade?

[Josh Fine]

No, my background was industrial relations through university, and then I've been in business my whole life with various businesses on the international export side. I'd say it's just business experience.

[Karen Ludwig, Liberal, New Brunswick Southwest, NB]

From your business experience, what advice would you give to a first-time exporter?

[Josh Fine]

I think my advice would be to just start exporting. Find a customer and start selling. A lot of the government advice I've gotten when I've participated with EDC, BDC, or a trade commissioner has made me aware of all the complexities and maybe some of the ways to break down those complexities. When you hear about all those complexities, it's overwhelming. I think it's about breaking down the overwhelmingness of all of that and just saying, “Hey, it's not really that hard.”

I have a 13-year-old son. Most of his purchasing happens directly from a factory in China. Whether he's buying toys, drones, or other goods, he's shopping abroad; he's not shopping domestically. I think sellers are not there yet; they're not seeing that the new generation of consumers doesn't care where you're located. You're just one click away.

[Karen Ludwig, Liberal, New Brunswick Southwest, NB]

On that, in terms of your experience, you've entered into 48 different countries. If you were working with the virtual trade commissioner of the Trade Commissioner Service, I'm sure they would have said to contact EDC. At any point, are you purchasing export insurance?

[Josh Fine]

Yes, we are.

[Karen Ludwig, Liberal, New Brunswick Southwest, NB]

Is that consistent? Do you always purchase it?

[Josh Fine]

No, sometimes it's too expensive and doesn't make sense for our market.

Again, a lot of our export now is through e-commerce, so we're actually getting paid for the goods before we ship them. Foreign receivables aren't even an issue anymore.

[Karen Ludwig, Liberal, New Brunswick Southwest, NB]

Thank you.

On the e-commerce part, have you integrated any part of the supply chain into your own business, such as on the shipping side or the trucking?

[Josh Fine]

Absolutely.

[Karen Ludwig, Liberal, New Brunswick Southwest, NB]

Was it a strategic decision to be based in Ottawa for the marketing and sales versus being based in Manitoba?

[Josh Fine]

No, it's just because I'm from here and I brought that piece of the business to the partnership, and Sean is from Manitoba and built the manufacturing and operation end there. That's just how it ended up.

[Karen Ludwig, Liberal, New Brunswick Southwest, NB]

That's great.

Right now you have 80 to 100 employees, and with the ratification of CETA, you're looking at some further opportunities for market expansion. Do you see those jobs being more in Manitoba or more in Ottawa?