Moncler making headway in digital, anticipating industry shift
Luxury outerwear specialist Moncler is fast anticipating a future in which digital channels make up a vital and sizable part of the luxury retail market. According to consultancy Bain, they’re right to do so: today, it says, Ecommerce accounts for around 9% of sales. By 2025, it will account for 20% to 25%.
That’s a massive increase, and underscores the tectonic shift going through luxury at the moment. Where once Ecommerce was seen to have a cheapening effect, the proliferation of high-speed internet connections, and the rise to prominence of the digital-savvy Millennial generation has changed the game.
Moncler’s share price has soared recently – up 29% year to date
SOURCE: Yahoo Finance
On Monday Moncler announced that internet sales made up 8% of its total sales, and that it will be investing heavily to pick this figure up. Moncler is a great example of a brand that might once have wondered whether its goods, which include puffer jackets that sell for as much as €1,000, could find a place online. Today, it’s a brand in the process of conquering that space.
The company’s chief corporate and supply officer, Luciano Santel, spoke to the company’s increasing digital capabilities in a shareholder meeting yesterday. He said:
“Our direct e-commerce channel has grown 30 percent in the last two years. We are very happy but aware that we can do more. We want to invest more.” And noting that 8% of the company’s total sales were now coming from online, he said: “This is positive given that some years ago this was zero. But we can do much more.”
Dominion holds Moncler in its Global Trends Luxury Fund.
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