Understanding Remo Ruffini’s Moncler transformation
Remo Ruffini, iconic outerwear fashion brand Moncler’s boss, has his sights set on the future of fashion. Three years ago, Ruffini decided fashion was at crucial juncture: the industry still organised itself around seasons, catwalk shows, and fashion weeks. But its audience had already embraced the much shorter cycles of social media. For these young and digitally-savvy consumers, Instagram is often more important than the traditional mechanics of the fashion world. With this realisation came another: Moncler would have to be different if it wanted to prosper.
Moncler’s share price has risen by 36% year to date
SOURCE: Yahoo Finance
Explaining his insight, Ruffini says: “The client wants to see something new every day. Every day they open Instagram and they want to see what’s up with Moncler, with Vuitton, with Gucci. They’re not going to wait six months to see what’s going on. That means I need a new story every month at least to give news to my customer. So I said, Why don’t we link the whole business to this attitude?”
Ruffini’s terms his new organisation of the brand The Genius Building. Moncler is the building, and the ‘Geniuses’ are an ever-changing roster of designers, brought in to keep things constantly fresh and interesting for millennial attention spans. Their designs are dropped regularly, with far faster rotations than you’d find in the traditional journey from catwalk to high street.
Moncler’s evolution is not a reflection of ill-fortune, but of prescience. In 2013, its revenues stood at $800 million. By 2017, they had increased to $1.43 billion. Profits increased by an even greater percentage, and the company’s share price has risen by 145%, since it went public five years ago. Rather, Ruffini made a bold play to predict the evolution of the fashion landscape and beat his competitors to the punch. It’s working.
But Ruffini understands the importance of constant innovation. To court it, he has a surprisingly simple routine: “It’s very important to do nothing. You see thousands of people walking across the street, and you notice the differences. Maybe the Genius Building is good for today, maybe it can last three years, maybe it can last 10 years. You must be ready to make something new.”
Dominion holds Moncler in its Global Trends Luxury Fund.
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