By Justin Walford 

A few months ago, I was shopping for a new set of kitchen knives. Like most consumers, I compared reviews, looked at materials, watched comparison videos, and eventually narrowed my decision to two nearly identical stainless steel sets.

One came from Wusthof, a heritage brand that’s been making knives for centuries. The other was a no-name manufacturer selling what appeared to be almost the same product, with the same materials and functionality, for roughly $300 less.

I bought the cheaper set, but afterwards found myself wondering if I’d made the right decision. Sure, the products were remarkably similar and their functionality appeared nearly identical. Plus, I was saving money.

Yet the premium brand’s higher price represented a layer of value that didn’t show up on a product comparison chart. More than two centuries of craftsmanship, confidence the company would stand behind its product, and the quiet satisfaction that comes from owning something built to last. None of that showed up in the specifications. Yet that’s exactly what the extra $300 was buying.

That experience got me thinking about a question retailers today are facing in almost every category. When consumers can easily find and validate lower-priced products with comparable functionality, what allows some brands to continue charging more?

I’ve spent much of my career across outdoor apparel, jewellery, retail, manufacturing and now chocolate, operating businesses in both Canada and the United States. What I’ve seen is that a premium usually can’t be defended by product quality alone. Instead, it’s validated by how much augmented value a brand can build around a strong product that also aligns with the desires of its core customer.

Here are some key lessons every retailer can learn from some of Canada’s premium brands.

The Best Brands Don’t Follow Trends. They Filter Them.

There’s no shortage of marketplaces for Canadians to access trending products at a fraction of the premium price. According to an Omnisend survey, 73% of Canadians bought from at least one Chinese marketplace such as Temu, Shein or AliExpress within the past year. 

To me, the rise of this kind of consumerism is the antithesis of a brand. It’s also evidence of just how comfortable consumers have become buying a lower-priced substitute when the functionality is good enough. 

Yet, some Canadian brands are still doing exceedingly well at gaining global market share at a premium price. Take Canada Goose for example. The premium outerwear and apparel company reported C$1.53 billion in revenue for fiscal 2026, up 13.3% year over year, while direct-to-consumer revenue grew 15.9%. 

Canada may be a relatively small luxury market, but Canada Goose has excelled at identifying global consumer trends and interpreting them through its distinctly Arctic identity. Unlike fast-fashion competitors that chase whatever is trending, Canada Goose is intentional about finding alignment between global trends, what matters to its core customer and the Arctic heritage its products and reputation have been built upon.

That alignment creates value that goes well beyond the product itself. A Canada Goose parka still needs to perform, but consumers aren’t paying a premium for warmth alone. They’re also buying into the trust, reputation and identity the brand has built around the product. When those elements reinforce one another, they create an augmented layer of value that a lower-priced substitute can’t easily replicate. 

Premium Brands Aren’t Better Everywhere. They’re Better Where It Counts. 

The quality of a premium brand’s product isn’t always dramatically better than the cheaper alternative. Canada Goose’s jackets aren’t necessarily 50% warmer than say a North Face competitor. Just as the no-name knives I purchased on Amazon, weren’t 50% less sharp than the Wusthofs. What successful premium brands understand well, however, is who their customers are and where those customers expect differentiation. 

Aritzia has mastered this art. Not only does the Canadian-based fashion retailer understand its core customers, it knows which nuances in product design and marketing will matter most to them. It’s no doubt part of why the company reported 35% revenue growth in fiscal 2026 and a 27% increase in comparable sales.

Take the Super Puff, one of Aritzia’s signature jackets, for example. Uniqlo and other global retailers make less expensive puffer jackets with comparable basic functionality and design. But Aritzia continues to evolve the product each year based on the trends that matter most to its customer. Depending on the season, the cut might become slightly shorter or boxier as silhouettes change. Those nuances may be meaningless to one consumer and immediately noticeable to another. Aritzia then reinforces those choices with an exceptional marketing machine that’s equally focused on the customer it’s trying to reach.

Being five per cent better doesn’t mean much if it’s in an area your customer doesn’t value, but being five per cent better in exactly the place your core customer cares about can be enough to keep a familiar product relevant and worth paying more for.

Your Customers May Be Telling You Where Your Next Premium Is

At a time when inflation and tariffs have made consumers increasingly conscious of price, some retailers have managed to continue raising prices while still gaining market share. Arc’teryx is a great example. Over the past decade, its flagship Gore-Tex jackets have tripled in price, while its sales have only accelerated. Amer Sports reported its technical apparel segment, which is led by Arc’teryx, grew 32% year over year in Q2 to $674 million.

One way Arc’teryx has been able to charge more is by expanding its relevance beyond climbers, skiers and outdoor enthusiasts without losing them. Its 2020 collaboration with Virgil Abloh’s Off-White runway at Paris fashion week famously bridged the gap between extreme outdoor gear and haute couture by featuring Arc’teryx jackets on the high-fashion runway.

That streetwear credibility has helped Arc’teryx reach new customers without sacrificing the technical performance its original customers value. For retailers, the lesson is to pay attention to where customers are already finding new value in your brand. When that opportunity aligns with what your brand already does well, expanding into it can create another layer of augmented value that customers are willing to pay for.

Going back to that no-name knife set I purchased on Amazon. In hindsight, I kind of wish I’d spent the extra $300. Not for a sharper edge, but for the certainty and social validation of a name that’s earned its reputation. A small regret, but it signifies what we’re seeing play out in every product category right now. A product alone might be good enough to win a sale, but it’s the augmented value brands create that keep customers wanting more.

Justin Walford is President of Totally Chocolate and Totally Chocolate Promo. Over the past 20 years, he’s led consumer goods, retail, and manufacturing businesses through growth, operational change, and brand evolution.