The high-end down apparel brand Moncler SpA (MONC.MI) announced that it will change its new product release strategy and will no longer release new products through the catwalk. This means that the Gamme Rouge and Gamme Bleu senior designer product lines that hold two fashion shows each year will be removed. And the corresponding design directors Giambattista Valli and Thom Browne will all leave the group.
Instead, the strategy is to increase the frequency of new product launches in large independent stores to the fastest once every two months, and promote through other channels such as publishing activities and social media to bring young consumers closer to the consumer , while satisfying their demand for immediate purchase.
GlobalData analyst Maureen Hinton believes that the new strategy is more applicable to the casual wear-based Moncler brand because of the slower transition of fashion trends in this category. Coupled with Moncler’s core product down jacket style, skip the fashion show to launch new products more return on investment is more impressive.
In the first nine months of the financial report released in October this year, Moncler SpA has revealed that it is working on a series of “important projects.” In today’s press release, CEO Remo Ruffini stated that the group must make changes and open up its horizons.
Moncler CEO Remo Ruffini said in his earnings report that innovation based on the essence of the brand is the secret of Moncler’s sustainable development. He emphasized that in the era of consumer upgrades, especially in the luxury goods sector, brands must continue to introduce more new styles and innovative marketing models to satisfy consumers’ desire for freshness. The
Luciano Santel, Moncler’s chief commercial officer, pointed out in a conference after the publication of the financial report that the brand will invest more in digital and social media marketing in the future to promote communication between brands and consumers. He also revealed that Moncler’s sales in October have increased significantly as the weather has gradually cooled, and Moncler’s sales performance in November and December will continue this positive trend. The
At the same time, Moncler’s online sales growth has exceeded the growth rate of physical retail, but in order to maintain the positioning of Moncler luxury brands, the brand will strictly control the number of products available online. The
As of the end of the reporting period, Moncler had 195 direct stores and 48 wholesale stores. In the third quarter, Moncler added a total of 4 stores, including the first in Kazakhstan.
With down jackets emphasizing the strong warmth achieved by high quality down feathers, Canada Goose’s wool blouse category also emphasizes the quality of the material. According to the brand’s statement in the media statement, all its knitted products use merino wool, and it took 36 months for the wool to be selected and tested. At the same time, the brand also specifically introduced the process of making these jerseys.
All knitwear claims to reference the infrared heat spectrum to organize the texture to help the garment achieve maximum thermal performance and increase comfort. The Canada Goose also made a special advertisement for this purpose. It focused on the production process of the new sweaters. Anna Maria, owner of Fuzzi, an Italian woolen company who produced sweaters for Jean-Paul Gaultier in the 1980s, and Lee Turlington, quality manager, all appeared.
“The logical next step along the path we have been exploring for the next time is that we are starting to enter,” CMO Poriadjian-Asch of Canada Goose explained why the company’s high profile product line is being expanded at the moment. “Customers have looked forward to this category. For a long time, “Want to know how high the customer’s expectations are, you can refer to the market performance of Canada Goose’s main competitor, Moncler.
In 2016, Moncler’s sales officially broke through the billion-dollar mark when the performance of global luxury goods growth was not satisfactory, and it still maintained a growth of nearly 7%. Thanks to its multi-category, multi-branch brand strategy – to remove down jackets, Moncler Gamme Rouge, who has been invited by Giambattista Valli, will even launch lightweight dresses and claim to be haute couture; and Moncler Gamme Bleu, headed by Thom Browne There will be shirts, casual suits, and trench coats available, and it is these fashion-oriented sub-brands that bring a lot of new business opportunities.
“Every company must innovate, and the designers play a decisive role,” said Moncler chairman and chief executive Remo Ruffini. Moncler now needs a new project to draw energy. “This is a very difficult decision. For the sake of brand innovation, we must eliminate the already slightly obsolete brand strategy launched a decade ago.”
In fact, this is not Moncler’s unilateral decision. The designer also hopes to withdraw from Moncler’s design work and allocate more energy to his own brand of the same name. “The cooperation with Moncler over the years has been very smooth. Remo gave me maximum creative freedom, but now Thom Browne has a new growth strategy, and I realized that I need to focus more on my own brand.” Thom Browne said that when Moncler began to rethink the brand’s development path, our thinking coincided.
As we previously reported, Thom Browne began to seek global growth. In September of this year, Thom Browne opened the first flagship store in Shanghai, and will expand its footprint in the Chinese market. He will open five stores in the next four months and will open another in Milan in April this year. The first European store opened in London in June.
It is worth noting that the good results are particularly attributable to Moncler’s good performance in the Asian market, including Japan, China and Hong Kong, and South Korea, where sales in Hong Kong also benefited from the relocation of local stores. In addition, except for Italy, where only a 4% increase was recorded, all other regions recorded double-digit increases.
Previously, Moncler has adjusted the price gap between China and Europe for commodities, and the person in charge once said: “We have been monitoring prices and have narrowed the difference between the two markets to less than 50%.” Currently, the core Category down jackets account for 75% to 80% of Moncler’s overall sales. Luciano Santel, chief operating officer of the company, once stated that in the future, the brand will use knitwear as a key category to operate and develop. It is believed that this category has great potential and footwear Accessories such as handbags are yet to be developed.
Many people know Moncler because Ma Yun’s father has been wearing it for three consecutive years. Moncler’s supporters are also in various celebrity circles, including Madonna, Tom Hanks, Little Plum, Orlando Bloom, and Wang Shi and Ma Yun.
Moncler plans to launch a new design strategy that builds on the “human sea tactics.”
Moncler had just stopped the two deputy lines Moncler Gamme Bleu and Gamme Rouge who had been operating for ten years. The designers of the two sub-lines were Thom Browne and Giambattista Valli. After this change, President and CEO Remo Ruffini Preparing to implement a new creative strategy for Moncler. It is learned that this plan will focus on eight designers, each of whom will design a series for Moncler alone. Although it is currently impossible to know the list of specific designers, it is certain that some of them are not known.
Moncler officials declined to comment on the new strategy, but the first series of designers will debut in the fall of Milan Fashion Week, and will merge men and women. Moncler is not blind to the new strategy. The company has published publicity photos of this strategy on social networks and named “Genius at work” and “A new creative chapter”.
On Tuesday’s Capital Market Day event, Luciano Santel, the company’s chief corporate and supply chain officer, said that in order to cope with the youthfulness strategy, the company will not substantially increase its prices to ensure that young consumers can afford it.
Chief Operating Officer Roberto Eggs said that the company will accelerate the investment in the online market to support e-commerce channel growth. IT investment in the next three years will reach 30 million euros to boost online revenue to double its share to 9 percent of the industry. At present, the Group’s revenue from e-commerce accounts for about 3%. In 2025, it is hoped that e-commerce revenue will eventually reach 25%.
According to Roberto Eggs, the alliance may favor about one-third of current young users, lower than Italian counterpart Gucci Gucci, after Gucci owner François-Henri Pinault revealed that the world’s second largest luxury brand accounted for half of young users, while the same group Younger users of the Yves Saint Laurent brand from Kering SA (KER.PA) are 65%.
The alliance can be planned to achieve omni-channel coverage in the European market in early 2019. In the focused Chinese market, Roberto Eggs stated that there will be specific individual plans. According to Roberto Eggs, the Alliance can plan to enter two new markets each year, while opening at least 10 new stores, and the Moncler Genius plan is the group’s new beginning.
In recent years, Moncler has become one of the most stable luxury brands. According to its latest financial report for the 12 months ended December 31, sales continued its growth momentum, and the growth rate reached another two. number. During the period, sales rose 15% year-on-year to 1.19 billion euros, operating profit also rose 15% to 340.9 million euros, gross margin was 34.5%, and net profit rose 27.3% year-on-year to 249.7 million euros.
Among them, Moncler’s revenue in Asia and other parts of the world increased by 18% year-on-year to 495.5 million euros, accounting for 41.5% of total revenue. Among them, the performance in Japan recorded double-digit growth, and sales in China and South Korea also showed positive growth.
It is understood that Moncler, founded in 1952, initially focused on outdoor climbing products such as tents and sleeping bags. At that time, it had nothing to do with luxury fashion. After being acquired by Remo Ruffuni, a costume family, in 2003, he gradually became fashionable and officially entered the luxury goods industry. At that time, the brand had annual sales of only tens of millions of euros.
Remo Ruffini, chairman and chief executive of Moncler, said that last year’s performance was markedly improved again to prove the effectiveness of the Group’s strategy. In the future, it will accelerate the change of product design and continuously introduce new products to meet the changing shopping preferences of consumers.
In fact, each partition does have its own distinctive design features. For example, the collaboration series with Pierpaolo Piccioli is a colorful down coat, and the unique design that can be wrapped from head to foot but not easy to swing back and forth is called “Chess”; MonclerSimone Rocha series uses a lot of ruffles, Geisha, sequined petals, and other complex elements with feminine features, inspired by women in brave mountaineering in Victorian dresses in fancy dresses; the Palm Angels collection is designed to be far from the touch shops, creating a “starvation”. Feelings and so on.
Inviting eight designers to design clothing for the brand is part of the “Moncler Genius project” that Moncler launched in February this year. According to Moncler official, the brand will start on June 15 and put on a designer’s product every month. The designer of the first product series to be released in June is Fujiwara Fujihaka. In this show’s display, Fujiwara Hiroshi’s venue was designed as a Japanese garden. This series of products is mainly men’s clothing, and the main product is down. Shirts and other innovative items are most likely to become the next “explosion.”
“This new strategy marks that Moncler is ushering in a brand new era. This will be a true revolution. A bold leap will lead the company to a new direction of creativity.” Moncler Global CEO Remo Ruffini accepts “No. One Financial Weekly pointed out in an interview.
Moncler clearly showed his intention to make a big change since last year. On November 13, 2017, this brand, which relied on Gamme Bleu and Gamme Rouge’s two full-featured men’s and women’s clothing lines to receive more than 1 billion euros (1.169 billion US dollars) in annual revenue, suddenly announced that it would terminate the two series and end Collaboration with the two branch designers Thom Browne and Giambattista Valli. According to information officially disclosed at that time, the brand’s focus shifted from the fashion collection to more sustainable design production. The reason was that the current market environment had undergone tremendous changes when the two design product lines were opened, and consumers began to Look forward to more choices and fresh products. Moncler thinks it must start making changes.
Moncler’s income growth in Asia and other parts of the world is the most significant, which is an increase of 18% to 495.5 million Euros, accounting for 41.5% of total revenue. Among them, the performance in Japan recorded double-digit growth, and sales in China and South Korea also increased. Positive growth; At present, China is also the largest market for Moncler stores.
In Italy, Moncler’s revenue increased by 4% year-over-year to EUR 149 million. The reopening of the flagship store of the brand in Napoleon Avenue in Milan in the fourth quarter boosted the growth of the business.
In Europe, the Middle East and Africa, Moncler’s sales increased 16% year-on-year to 352 million Euros, accounting for 29.5% of total revenue. Both retail and wholesale channels achieved double-digit growth. The performance of the brand in France, the UK and Germany was particularly outstanding. ;
Moncler’s sales in North America increased by 14% to EUR 196 million, accounting for 16.5% of total revenue. The retail performance of the brand in Canada and the United States performed well, and the wholesale channel business also showed an improvement trend.