Table of Contents
The Concept Behind the Shop Canadian Indie Beauty Collective
The Shop Canadian Indie Beauty Collective is a unique platform that aims to promote and support Canadian beauty startups. The concept is simple yet innovative: by listing these startups on a single website, the collective hopes to create a hub for like-minded entrepreneurs to connect, collaborate, and grow their businesses. This approach not only showcases the diversity and talent of Canadian beauty startups but also provides a valuable resource for consumers looking for unique and innovative products.
The Founding Members
The collective was founded by 20 brand founder members who contributed funds to set up the site. These members are passionate about promoting Canadian beauty startups and are committed to supporting their fellow entrepreneurs.
The Tariff Conundrum
The Canadian beauty industry is facing a daunting challenge with the impending US tariffs on Canadian goods. The tariffs, which are expected to take effect in the coming months, will significantly impact the industry’s exports to the US market.
However, the Canadian market is a unique beast. With a population of just over 37 million people, it’s a relatively small market, but it’s also highly competitive. In this article, we’ll explore the Canadian beauty market, its trends, and what new beauty brands need to know to succeed in this market.
Understanding the Canadian Beauty Market
The Canadian beauty market is a complex and dynamic entity, influenced by various factors such as demographics, consumer behavior, and cultural trends. With a population of just over 37 million people, Canada is a relatively small market compared to the US, but it’s also highly competitive. According to a report by Euromonitor International, the Canadian beauty market was valued at approximately CAD 13.4 billion in 2020, with a growth rate of 3.5% per annum.
Key Trends in the Canadian Beauty Market
Exporting to the US Market
For new beauty brands, exporting to the US market can be a lucrative opportunity.
We’re already a global company,” says Sahajan’s CEO, Rohan Suri.
The Rise of Sahajan
Sahajan is a relatively new company, founded in 2019 by Rohan Suri and his team. Despite its young age, Sahajan has already made a significant impact in the market, particularly in the realm of plant-based and vegan products. The company’s success can be attributed to its innovative approach to product development, its commitment to sustainability, and its focus on customer satisfaction.
Key Features of Sahajan
Smaller indie brands face significant hurdles in adapting to the new reality of the global supply chain.
The Challenges of Canadian Manufacturing
The COVID-19 pandemic has brought about unprecedented challenges for the global supply chain, and Canada’s manufacturing sector is no exception. Smaller indie brands with Canada-exclusive manufacturing will face significant hurdles in adapting to the new reality. According to founders and investors, these brands will struggle to shift operations as quickly as their larger, global counterparts. Limited resources: Smaller indie brands often have limited financial resources, which can hinder their ability to invest in new equipment, technology, and personnel. Inflexible supply chains: Smaller brands may have inflexible supply chains that make it difficult to adjust to changes in demand or production. * Lack of global expertise: Smaller indie brands may not have the same level of global expertise as larger conglomerates, making it harder to navigate complex international trade regulations.**
The Impact on Canadian Goods
The impact of the pandemic on Canadian manufacturing will be felt across the country. However, the extent of the impact is still to be determined, and questions remain about how de minimis exemptions will apply to Canadian goods. De minimis exemptions: De minimis exemptions allow for the duty-free importation of goods that meet certain criteria. However, it is unclear whether these exemptions will apply to Canadian goods. Tariffs and trade agreements: The pandemic has highlighted the importance of trade agreements and tariffs in shaping the global economy.
The Impact of Canada’s Retaliatory Tariffs on US Brands
The recent announcement by the Canadian government of retaliatory tariffs on US goods has sent shockwaves throughout the beauty industry, particularly affecting US brands operating in Canada.
The Detox Market is a Canadian e-commerce platform that specializes in clean beauty and wellness products.
The Rise of Clean Beauty
The clean beauty movement has been gaining momentum over the past decade, with consumers increasingly seeking out products that are free from harsh chemicals, artificial fragrances, and dyes.
Tariffs unlikely to drive manufacturing boom in US economy.
The Canadian Perspective
The Canadian founders of the company, who wish to remain anonymous, have expressed skepticism about the effectiveness of tariffs in driving a manufacturing boom in the US. According to them, the impact of tariffs on the US economy is likely to be limited, and the benefits will be largely confined to a small group of industries. The founders argue that the US economy is already highly integrated with the global market, and that tariffs will not have a significant impact on the overall economy. They also point out that the US has a large and well-established manufacturing sector, which will be less affected by tariffs than smaller industries. Furthermore, the founders suggest that the benefits of tariffs will be largely concentrated in industries that are already well-positioned to take advantage of the protectionist policies, such as aerospace and defense.
The Global Market Focus
Rather than focusing solely on the US market, the Canadian founders are likely to prioritize expansion to other markets more quickly. This is driven by the company’s global ambitions and the desire to tap into emerging markets.
Tariffs could make it harder for startups to innovate and grow in Canada.
The country’s startup ecosystem is already facing challenges due to the ongoing COVID-19 pandemic, and the imposition of tariffs on imported goods could exacerbate these challenges.
The Impact of Tariffs on Canada’s Startup Scene
Economic Challenges
The imposition of tariffs on imported goods could have a significant impact on Canada’s startup scene. Here are some of the ways in which tariffs could affect startups:
Share this article:
