Moncler: specialization and diversification will bring growth
Earlier this month, Moncler released results that showed it pass the €1 billion mark in revenue for the first time ever. It beat analyst expectations, and – since 2014 – has more than doubled its revenues. It is also currently seeing strong performance across a wide variety of products in all of its geographic regions. That’s why, when Moncler’s CEO Remo Ruffini recently spoke to Business of Fashion, it was worth listening to what he had to say.
Moncler’s share price has risen by almost 21% so far this year!
SOURCE: Yahoo Finance
According to Ruffini, one of the keys to Moncler’s success is its store opening strategy. By opening stores in locations where its wholesale accounts have performed well, it can guarantee a certain amount of demand for its products.
Speaking about the company’s strategy regarding product offerings, he told Business of Fashion that:
“Our strategy is always very important. We try to be contemporary and modern, to always respect the past with new technology, new ideas and a new way of life. But respectful to the DNA of the brand. I think if you specialize in something very consistently, your customers really trust you, for me, I feel like it’s a good strategy.”
However, he also sees Moncler’s future growth coming from areas other than its famous ski jackets and outerwear brand:
“The other categories are growing and they are growing fast. With knitwear, we see a lot of interesting numbers and I think in the future, we can have the possibility to do the same with soft accessories. People ask for gloves, hats, scarves. I think it could be a very interesting number for us in the near future.”
While Ruffini believes there are geopolitical events you cannot control for – everything from Brexit to terrorism – he is firmly wedded to working within more predictable trends. This means that, for Moncler, the final piece of the puzzle is online:
“Digital is super important and we work a lot on that. In the next five years, we will change this dramatically. Now we have to make ideas, content, projects every month, talk with our customers and give energy to understand that the world is changing, that you are at least contemporary. We want more and more to accelerate this process in the future.”
Dominion holds Moncler in its Global Trends Luxury Fund.
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