Now known as the successful Louis Garneau Group (LGG), this Quebec-based company sprang

from humble beginnings: Louis Garneaus fathers garage served both as head office and

production site. In 1983, after 13 years as a cyclist and Canadian champion, Louis Garneau was

ready to embark on a second career. But he was not ready to leave the cycling world behind.

Instead, Garneau channelled his frustration with the cycling gear then available on the market

into building his own sports apparel company, which now boasts over $50 million in annual

sales. Garneau used his experience to design and manufacture top-line cycling shorts for

Canadas elite and recreational cyclists, and in 1989 he was able to move out of his fathers

garage and into his first manufacturing plant.

LGG employs more than 400 staff and has more than 2,500 clients in North America and

more than 20 distributors worldwide. The plant in St. Augustine de Desmaures near Quebec City

sprawls over 85,000 square feet. Another manufacturing facility is located in Vermont.

Distribution is accomplished using a specialized sales team with extensive local promotional

support in each country of export, and sponsorship of elite international teams.

LGG expanded from cycling shorts to a fully coordinated line of accessories for cyclists

and triathletes, including clothing, helmets and shoes; childrens clothing and bathing suits;

cross-country skiing and active wear; a line of downhill suits; and most recently snowshoes. The

firm is now among the top manufacturers of high-quality bicycle helmets in the world, and

dominates the Canadian market.

The expansion was based upon a strategy of emerging technology and design for a highgrowth market. By the mid-1990s the firm was eager to expand outside the North American

market. Demographic research confirmed that the cycling market was hot in many other

countries; however, the company faced some roadblocks. Overseas customers often wanted 30

days with the product before payment, a demand impossible for the small company to fulfill. In

addition, communication technology was not always up to par, and the legalities surrounding

collection on defaulted loans seemed impossible to overcome. The firm contacted Export

Development Corp. to determine how it could help. With Accounts Receivable Insurance

Case D: Louis Garneau Group 2

provided by EDC, the firm was able to reduce its risks associated with exporting. The firm now

exports to more than 30 companies, on every continent.

The vision of the founder is reflected in the quality of every product produced. As

testament, Garneaus apparel has been worn by members of the Canadian and American Olympic

cycling teams and by world champion triathletes. The company continues to pursue innovation,

with the introduction of new products. The Prologue Helmet was introduced in 2002, and

enabled cyclists and triathletes to gain seconds without sacrificing safety during races. In 2009,

the company debuted a line of snowshoes to the North American market, and in 2010, the

company was the winner of the Editors Choice Award for Best Womens Short under $100 by

Bicycling Magazine.

Questions

1. How important do you think the promotion through events was to the successful

expansion of Garneau products? How else could the product be promoted?

2. What problems did the company encounter introducing the product to the international

market?

3. What features of the product line should be emphasized in promotion and advertising?

4. Discuss the distribution channels used by Garneau and why they are effective in the

international marketplace.

Questions 1. How important do you think the promotion through events was to the successful expansion of Garneau products? How else could the product be promoted? 2. What problems did the company encounter introducing the product to the international market? 3. What features of the product line should be emphasized in promotion and advertising? 4. Discuss the distribution channels used by Garneau and why they are effective in the international marketplace