Grant Daoust, CEO of Trends Electronics, reflects back on 35 years of CI distribution, shares insight on the socio-economic factors that have brought Daoust to the difficult decision to close the business and hints that this is not the end for him or the team.
“For 35 years, Trends Electronics was part of the fabric of the Canadian consumer electronics industry. Founded in 1990 by Mitch Irving and Grant Daoust, the company built its reputation on one simple idea: innovation matters, but only when it creates real value for customers. It is the relationship with these customers that was the cornerstone of the company. For over 35 years we have built relationships across the country. So many of these people have become lifelong friends. We are equally proud of all the great people who have passed through our company to become our best customers or friendly competitors.
From its earliest days, Trends was never content to follow. The company became one of Canada’s early adopters of high-end car audio, helping introduce premium mobile audio concepts long before the category matured. As the market evolved, Trends adapted quickly, pivoting into the custom installation business. Trends was one of the first companies to bring purpose built in-wall and in-ceiling speakers to the Canadian market. The company grew and expanded into the commercial market segment, increased opportunities in custom integration and home electronics, while maintaining a strong car audio presence across Canada.
By late 2018, it became clear that the Canadian distribution model was under pressure. United States manufacturers increasingly believed they could sell directly into Canada, bypassing long-standing distribution partners. Sometimes, when sales volumes reach a threshold level, some suppliers believe it may be in their best interest to bypass a distributor or sometimes acquire them into their U.S. organization. The rules were changing in a structural and permanent way.
Between 2020 and 2021, Trends entered one of the strongest growth phases in its history. By working with suppliers and importing products straight from China combined with direct manufacturing with focus on design, function, and value engineering, the company grew rapidly more than doubling in revenue in just two years.
With increasing changes in the Canadian distribution landscape, compounded with shifting market trends and additional tariff pressures resulting in higher costs, achieving the higher sales volumes become challenging. Trends did not fail due to poor execution, weak relationships, or lack of vision. It struggled because traditional distribution without control of manufacturing, direct from China pricing and control of direct-to-market strategy became challenging.
As Trends completes its wind-down process, expected to conclude by mid-January, we remain optimistic about what comes next. There are so many good people here, Paul McCann has worked as part of our organization virtually since day one, and as COO of the company, McCann is excited about the next chapter for everyone and expresses immense thanks for all the relationships with suppliers, logistics providers and customers that have been forged over his career. I would also like to thank the great team members such as Grant McFatter (Mobile Director), Derek Vendrasco (marketing and branding), Robert Price, Earl Grundy, Megan Bevacqua (from our customer experience team). The accounting team of Janice Lou and Jenny Zhou and so many more who have with us like family for many years.
This is not the end of the road. I will remain in the industry and hope to make Canada stronger with some exciting new opportunities. We have been fortunate to have so many great people that have been part of our company throughout the thirty-five plus years, and many are still in the industry today. I am so thankful for them, and our partners, both suppliers and customers. The people behind Trends will emerge in the industry again.
We truly are grateful to all our fantastic customers and suppliers who supported us for 35 years.
Sincerely,
Grant Daoust
CEO, Trends Electronics