COMPANY SUMMARY COMPANY PROFILE HISTORY CORPORATE STRUCTURE MISSION STATEMENT GROWTH PROJECTIONS
COMPETITIVE ANALYSIS SWOT ANALYSIS BRAND IDENTITY MATRIX PRICE ACCESSIBILITY MATRIX DISTRIBUTION
COMMUNICATION & PROMOTION IN-STORE / ONLINE/ CATALOGUE ADVERTISING EXPENSES
MARKET OVERVIEW CHILE IN THE GDRI MARKET ANALYSIS-CHILE PESTEL ANALYSIS TARGET CUSTOMERS KEY PLAYERS DIRECT COMPETITORS INDIRECT COMPETITORS
STORE LOCATION AREA/SHOPPER LIFESTYLE SALES POTENTIAL AREA FACTORS/ATTRACTIONS
STORE DESIGN
INSPIRATION & MOOD BOARD STORE & VISUAL DESIGN COST SHEET FOR FIXTURES
PRODUCT PLAN MERCHANDISE PLAN
PROMOTIONAL PLAN OMNI-CHANNEL MARKETING PLAN
FINANCIAL PLAN SALES FORECAST INCOME STATEMENT
CONCLUSION BIBLIOGRAPHY
FOUNDED IN 1952 BY RENE RAMILLON AND ANDRE VINCENT, THE MONCLER BRAND WAS INITIALLY DEDICATED TO SPORTING GARMENTS FOR MOUNTAINEERING. THE BRAND TOOK ITS NAME FROM THE ABBREVIATION OF MONESTRIER DE CLERMONT, A MOUNTAIN VILLAGE NEAR GRENOBLE FRANCE. TODAY, MONCLER IS LOCATED IN ITALY AND IS RECOGNIZED FOR BEING A LUXURY APPAREL MANUFACTURER AND LIFESTYLE BRAND, THAT MERGES STYLE WITH ONGOING TECHNOLOGICAL RESEARCH.
IN 1954
THE FIRST MONCLER DOWN JACKET WAS MADE AND ITS OUTSTANDING TECHNICAL PERFORMANCE MADE IT AN INSTANT HIT
IN 1968
MONCLER BECAME THE OFFICIAL SUPPLIER OF THE FRENCH SKIING TEAM DURING THE WINTER OLYMPICS
IN 2003
REMO RUFFINI BOUGHT MONCLER AND IMPLEMENTED THE STRATEGY OF THE GLOBAL DOWN JACKET. WORKING ON FIT AND MATERIALS, WAS THE START OF A PROCESS TO REPOSITION THE BRAND. QUICKLY THE UNIVERSAL SPIRIT OF MONCLER BECAME INCREASINGLY IDENTIFIABLE
IN 2006
WAS THE LAUNCHED THEIR FIRST HIGH-END WOMEN’SCOLLECTION COLLECTIONNAMED NAMEDGAMME MONCLER LAUCHED OF THEIR FIRST HIGH-END WOMEN’S GAMME ROUGE, THE PURPOSE OF THIS LAUNCH WAS TO CONTINUING DIVERSIFYING ROUGUE, THE PURPOSE OF THIS LAUNCH WAS TO CONTINUE DIVERSIFYING THE RANGE THE RANGE OF EXCLUSIVE PRODUCTS OF EXCLUSIVE PRODUCTS. (HIGHEST CRITERIA : QUALITY, DESIGN AND ATTENTION TO PRODUCTION)
(HIGHEST CRITERIA: QUALITY, DESIGN AND ATTENTION TO PRODUCTION)
IN 2007
THE FIRST FIRST URBAN URBAN MONCLER MONCLER BOUTIQUE BOUTIQUE OPENED WAS OPENED IN PARIS. SHORTLY AFTER OPENING THE IN PARIS. SHORTLY AFTER THE THE OPENING IN IN PARIS, THE COMPANY EXPANDED AND OPENED NEW STORE IN KEY CITIES CITIES PARIS, THE COMPANY EXTENDED AND OPENED NEW STORES IN KEY CITIES THROGHOUT ITALY, THROUGHOUT ITALY, EUROPE, ASIA, JAPAN AND AMERICA EUROPE, ASIA, JAPAN, AND AMERICA.
IN 2008
THE CARLYLE PRIVATE EQUITY FUND MADE ITS ENTRY INTO MONCLER, THEREBY CONTRIBUTING TOWARDS THE BRAND’S GROWTH PLANS.
IN 2009
PURSUING THE STRATEGY OF DIVERSIFYING ITS RANGE OF PRODUCTS, THE FIRST MONCLER BRAND COLLECTION FOR MEN, GAMME BLEU, WAS LAUNCHED.
IN 2010
MONCLER LAUNCHED THE FIRST COLLECTION DESIGNED FOR BOTH MEN AND WOMEN AND DESTINED FOR OUTDOOR SPORTS CALLED GENOBLE, IT FEATURED BOTH TECHNICAL AND FASHION ELEMENTS
IN 2011
MONCLER SIGNED AN AGREEMENT WITH EURAZEO, AN INVESTMENT COMPANY, PART OF THE GROUP’S GROWTH STRATEGY IN THE LAST FEW YEARS
IN 2013
MONCLER (MONC IM; MONC MI) STARTED TRADING IN THE ITALIAN STOCK EXCHANGE, TOPING A 47% INCREASE AT THE END OF ITS FIRST TRADING DAY, BECOMING THE MOST SUCCESSFUL IPO IN EUROPE IN 2013
4
MISSION
STATEMENT
MONCLER MISSION IS TO PURSUE DEVELOPMENT OF THE BRAND IN THE SEGMENT OF LUXURY GOODS WORLDWIDE, BY KEEP WORKING TO STRENGTHEN THE IDENTITY AND UNIQUENESS OF THE BRAND’S MONCLER’S MISSION IS TO PURSUEAND DEVELOPMENT OF THE BRAND INMARKETS, THE SEGMENT OFSELECTING LUXURY GOODS POSITIONING, BY DEVELOPING CONSOLIDATING STRATEGIC AND BY AND WORLDWIDE, CONTINUING TOINSTRENGHTEN THE IDENTITY AND UNIQUENESS OFBRAND’S THE EXPANDINGBY THE RANGE OF WORKING PRODUCTS, SEGMENTS WHICH ARE COMPATIBLE WITH THE BRAND’S POSITIONING, BY DEVELOPING AND CONSOLIDATING STRATEGIC MARKETS AND SELECTING DISTINCTIVE CHARACTERISTICS.
AND EXPANDING THE RANGE OF PRODUCTS, IN SEGMENTS WHICH ARE COMPATIBLE WITH THE BRAND’S DISTINCTIVE CHARACTERISTICS.
DEVELOP ITS OWN DIRECT RETAIL DISTRIBUTION NETWORK BY OPENING NEW DOSs WORLDWIDE EUROPE (Russia, Eastern Europe and Middle East) AMERICA (Canada and Brazil) ASIA (China) JAPAN
EXPAND THE RANGE OF CLOTHING PRODUCTS THAT ARE COMPLEMENTARY TO THE EXISTING MERCHANDISING. THESE PRODUCTS INCLUDE, KNITWEAR FOOTWEAR LEATHER ACCESSORIES EYEWEAR
INCREASE TARGETED PENETRATION OF THE PRODUCT IN EACH INDIVIDUAL STORE OF THE WHOLESALE SEGMENT
DEVELOP DIRECT SALES STRUCTURES AND COMMERCIAL BRANCHES IN ORDER TO BE CLOSER TO THE CUSTOMER AND PROMOTE GROWTH OF MARKETS YET TO BE DEVELOPED,
MANTAINING SELECTIVENESS & CAREFULLY MANAGING THEIR CLIENTELE
POP-UP SHOPS
-UNIQUE POSITIONING IN THE LUXURY SECTOR -EXCELLENCE IN PRODUCT QUALITY AND INNOVATION -STRONG DISTRIBUTION NETWORK, BY CONTROLLING BOTH
-MAINTAINS CONTROL AND CONDUCTS INSPECTIONS
OVER SUPPLIER TO GUARANTEE HIGH QUALITY STANDARD AND ANIMAL PROTECTION POLICIES.
WHOLESALE, THROUGH
DIRECTLY MANAGED SHOWROOMS, AND THROUGH RETAIL.
-STRONG BRAND HERITAGE AND DNA (RECOGNIZABLE LOGO-PRODUCTS -CONSOLIDATED PRESENCE IN EUROPE, EUROPE AND USA
AND REPUTATION)
-STRONG MULTIMEDIA COMMUNICATION AND MARKETING STRATEGIES -STRONG RETAIL CONCEPT AND SPACES (VISUAL MERCHANDISE AND PRODUCT DISPLAYS)
-SUCCESSFUL COLLABORATIONS
WITH ARTIST AND ESTABLISHED DESIGNERS SUCH AS THOM BROWNE, MARY KATRANZOU
-LIMITED PRODUCT RANGE -LOW MERCHANDISE ASSORTMENT -LACK OF MIDDLE MARKET EXPOSURE. -SLOW IMPROVEMENTS IN DIGITAL AND
TECHNOLOGY PRACTICES LIKE WEARABLE TECHNOLOGY
-MORE AFFORDABLE BRAND COMPETITORS -EXTREMELY COMPETITIVE SEGMENT -INCREASED COUNTERFEIT ITEMS ARE ENTERING THE MARKET -ENVIRONMENTALLY SUSTAINABLE BRANDS ARE CONTINUOUSLY
GROWING (CANADA GOOSE}
-EXTEND GLOBAL EXPANSION IN EUROPE ( RUSSIA, EASTERN EUROPE AND MIDDLE EAST), -ATTRACT MILLENNIAL CUSTOMERS THROUGH PRODUCT EXTENSION -EXTEND THEIR PRODUCT OFFER AND PRICE RANGE. -SOCIAL MEDIA EXPANSION: TWITTER, FACEBOOK, INSTAGRAM, YOUTUBE, TUMBLR. -EMERGING LUXURY MARKETS IN EMERGING ECONOMIES -CATER THE ON-THE-GO SHOPPERS I N HIGH TRAFFIC TOURIST DESTINATIONS -IMPLEMENTING ART AND CULTURE INTO THEIR RETAIL SPACES -CELEBRITY ENDORSEMENT
-INCREASINGLY HIGHER CONCERN FOR ANIMALS RIGHT (PETA) -INCREASING AVAILABILITY OF KNOCKOFFS -LEADING COMPETITOR’S PRESENCE IN NEW POTENTIAL LOCATIONS
AMERICA (CANADA AND BRAZIL) AND ASIA (CHINA) AND JAPAN .
THE BRAND DNA IS MADE OF HERITAGE, QUALITY, AND UNIQUENESS. THE BRAND MOTTO “BORN IN THE MOUNTAINS, LIVES IN THE CITY” EXPLAINS HOW THE MONCLER BRAND EVOLVED FROM A RANGE OF PRODUCTS DESIGNED FOR SPORTING PURPOSES TO MORE VERSATILE PRODUCTS AIMED TO TARGET A HIGH-END CUSTOMER THAT ENJOYS THE LIFESTYLE OFFERED BY THE BRAND.
THE BRAND DNA IS MADE OF HERITAGE, QUALITY AND UNIQUENESS. THE BRAND MOTTO “BORN IN THE MOUNTAINS, LIVES IN THE CITY” EXPLAINS HOW THE MONCLER BRAND EVOLVED FROM A RANGE OF PRODUCTS DESIGNED FOR SPORTING PURPOSES TO MORE VERSATILE PRODUCTS AIMED TO TARGET A HIGH-END CUSTOMER THAT ENJOY THE LIFESTYLE OFFERED BY THE BRAND.
•
WORLDWIDE RECOGNITION
•
PUBLICLY TRADED
•
EUROPEAN- FRENCH HERITAGE
•
60-YEAR-OLD ANNIVERSARY
•
EXPERIENCED
•
DETAIL-ORIENTED
•
CONTINUOUSLY GROWING COMPANY
• CORPORATE SOCIAL RESPONSIBLE 1,407 FULL-TIME EQUIVALENT EMPLOYEES
1.MONCLER PERSONIFIED WOULD IDENTIFY A POLISH AND POWERFUL BUSINESS MEN 2.HIS FRENCH HERITAGE IS A BIG PART OF HIS LIFESTYLE. 3.OUTDOORS AND SPORTS ARE A BIG PART OF HIS LIFE. 4.HE HAS A MOUNTAINEER SOUL WITH A WEALTHY BACKGROUND OF OLD MONEY. 5.HIS HAS A CLASSIC, CONTEMPORARY AND SOPHISTICATED SENSE OF STYLE. 6.HE APPRECIATES HIGH QUALITY LUXURY PRODUCTS, STATUS PIECES AND EXCLUSIVITY WITH HIS PURCHASES
-WELL-KNOWN
SYMBOL OF MONCLER’S LOGO .
-THE BLUE, WHITE & RED TRIMS USED TO EMBELLISH THEIRS SHOES, OR AS A
FEATURE IN THEIR ZIPPER PULLS.
-THE USE OF THIS COLORS REFERENCE THE FRENCH FLAG , THIS FEATURE IS PRESENT IN MOST OF THEIR PRODUCT, COATS, GLOVES AND ACCESSORIES.
-THE LOGO IS PRESENT IN ALL OF THEIR STYLES AND PRODUCTS, IN CAN BE PRINTED IN SOME OF THE SKIWEAR PRODUCTS OR IN THE FORM OF A PATCH
-THE BRAND IS WELL KNOWN ALSO FOR THE DIFFERENT QUILTING TECHNIQUES THEY USED IN THEIR LACQUERED NYLON DOWN JACKETS, OR IN THEIR WOOL AND LEATHER COATS.
8 PRICE
PRICE ACCESSIBILITY MATRIX
ACCESSIBILITY
09
DISTRIBUTION
Vo l u m e o f S a l e s a n d N u m b e r o f S t o r e s
167 Directly Operated Stores (DOS). Italy EMEA (excl. Italy) Asia & Rest of the World Americas
19 53 79 16
33 WHOLESALE MONO-BRAND STORES (SHOP-IN-SHOPS) TOTAL: 200
OPENING STORES
In October, Moncler, signed two important lease agreements to open respectively a store in London (Old Bond Street) and a store in New York (Madison Avenue)
Moncler achieved store sales growth in line with management expectations after outstanding results in the first quarter of the year and the solid performance of the SS 15 collections in second quarter. The wholesale channel recorded revenues of $301.7 which include the impact of the conversion of the Korean business from wholesale into retail, from January 2015. Excluding Korea, wholesale grew 1% at constant exchange rates and 5% at current exchange rates, due to an excellent performance in the United States and despite the reduction of some doors mainly in Italy and Europe.
Excluding Korea, wholesale grew 1% at constant exchange rates and 5% at current exchange rates, due to an excellent performance in the United States and despite the reduction of some doors mainly in Italy and Europe. FINANCIALS IN USD (MIL) EXCHANGE RATE (PERIOD AVG) 0.753374 FILED CURRENCY EUR
JOINT VENTURE In January 2015 Moncler converted all of its 12 Korean wholesale mono-brand stores into Directly Operated Stores.
EYEWEAR LICENSE AGREEMENT On September 2015, Marcolin Group and Moncler S.p.A. announced the signing of a worldwide exclusive license agreement for the design, production and distribution of Moncler branded men’s and women’s sunglasses and eyeglasses, as well as ski masks for men, women and children. The license will be effective from January 2016 until December 2020 with the possibility of renewing for an additional five years. The launch of the first eyewear collection is expected by March 2016.
PRODUCTION UNIT ACQUISITION On August 2015, Moncler acquired a small production unit in Romania that manufactures apparel products and that was already a Moncler supplier. This production unit, which is today not significant in the context of the Group, represents the first step in a project aimed at partially integrating production.
10 01
AD C A M PA I G N S
Moncler tells a story beyond clothes in its Aw 15 advertising campaign inspired by Nordic, Russian and Slavic folklore.
This storytelling campaign has opened up opportunities for the brand to engage with consumers on an emotional level as it gradually releases more of the story online.
02
MARKETING STRATEGIES
Communication and Promotional Activities
PA R T N E R S H I P S
In 2015 The brand partnered with explorer Michele Pontrandolfo, who wore Moncler in his solo exploration of the South Pole, to promote its Grenoble AW 15 collection. In 2013 Moncler partnered with Federazione Italiana Sport del Ghiaccio. The fashion house provided short track and speed skating teams with the official uniforms for the 2013/2014 season.
This partnerships align Moncler with impressive accomplishments and promote the products as high performance technical clothing.
03
CAUSES
The brand curated a traveling photography exhibit and capsule collection that emphasized the brand’s relationship with the outdoors. The “Blackout” project featured 21 images of mountain terrain in Iceland captured by artist Dan Holdsworth. These were reproduced on jackets, pants and accessories in its AW 14 collection.
This was an effective opportunity for Customers to live and experience the brand’s VALUES in a very real and visible way.
04
C O L L A B O R AT I O N S
Moncler frequently reinvents its jackets through art, giving a classic winter item a new spin and spurring new purchases from its loyal consumers. In 2015 the brand collaborated with Los Angeles art collaborative FriendsWithYou. The collection featured parkas with prints of FriendsWithYou’s recurring characters giving them a playful touch.
D I G I TA L
In 2011 Moncler partnered with creative agency, Wednesday, to work on a range of digital initiatives, including the re-design of the brand’s e-commerce flagship on the Yoox platform.
06
DESIGN
ADVERTISING EXPENSES
05
According to the latest annual financial report published in 2014 advertising expenses posted a total of $61.2 for the year. Then in the first 9 nine months of fiscal year 2015 Moncler reported advertising expenses of $52.6 representing 7.0% of revenues compared to 7.4% in the same period of 2014. Because a considerable amount of the Group’s costs are euro-denominated, the improvement in profits and margins is also due to the currency’s rate trends. FINANCIALS IN USD (MIL) EXCHANGE RATE (PERIOD AVG) 0.753374
FILED CURRENCY EUR
The fashion house launched the Gamme Bleu men’s line, designed by Thom Browne, in 2009 and Grenoble, a more innovative technical collection, in 2010. The collections have become known for their spectacular sports-themed catwalk shows with the purpose of driving marketing efforts rather than sales.
07
MOBILE
08
SOCIAL MEDIA
2014 was the year Moncler introduced its first mobile application to better reach its technology driven consumers. This new Channel allows them to shop easily on a mobile devices through a contained experience.
In 2015 Moncler introduced a new mobile application through Facebook that allows users to create their own digital snowfall and capture it with photos. This strategy was a playful tool for customers to engage with the brand online and to reinforce Moncler’s current advertising strategy.
SOCIAL MEDIA
According to GRDI (Global Retail Development Index) findings Latin-American as a region has begun trending downwards in their rankings, thanks to poor economic performance and political instability in some leading countries the GPD growth of the region sank to roughly 3.4% in 2014. However, by 2022 Latin America should account for 7% luxury brands’ total sales, up from 3-4% now. Nevertheless, retailers can take advantage of the still expansion of the middle class as well as the growing class of highly educated professionals that is aware of global brands and trends and is becoming part of the global elite (high earning educated professional) which in developed markets accounts for 20% of the population
CHILE IN THE GRDI Even though Chile dropped two spots in this year GDP due to a slower grow of 1.8%, its fundamentals are still strong and there is a lot of room for opportunity. According to the A.T. Kearney study, years of economic and political stability have helped the country build one of the most sophisticated retail environments of Latin America. Chile’s fundamentals are still strong and there is a lot of room for opportunity with a strengthening middle class and an increasing GDP growth of 4% in 2013 and is expected to grow through 2015. After steadily rising in the ranking for several years, Chile stills maintain its position as the top 3 country rank this year.
Chile retail market is one of the most mature retail markets in Latin America. Although the Chilean retail market only represents 3.9 % of Latin America’s total retail sales, the southern cone nation of 17.1 million people has established itself as a sophisticated regional retail destination . The STATISTA Report explained that the apparel retail industry had total revenues of $4.4 billion in 2015 and is expected to increase 13% in the next four years. Consulting experts stated that Chile continues to maintain its position in the index, as a growing middle class offers lucrative opportunities, in 2011 the retail market grew by 10 % as result of increased middle-class purchasing power, a younger, urban population, and government incentives to stimulate retail consumption. As for Chile, the luxury market has seen a 15% growth from last year. In 2014 Sales of luxury items reached over $30 million. This was mostly because Chile’s economic growth has led to rising household incomes and changes to consumer purchasing behavior in the past years. Rising incomes combined with reduced birth rates have led to increases in both essential and non-essential consumer spending. Insurance company Allianz (FRA:ALV) revealed in a report that Chileans are, on average, the richest Latin Americans, with a median per capita household income of $23,000. Many luxury brands have opened their first store in Santiago between 2013- 2015. The brands include Salvatore Ferragamo and Ermenegildo Zegna, among others, like Louis Vuitton and Hermès, which already firmly planted in Santiago’s wealthy Vitacura district along as in La Avenida Alonso de Cordova. After analyzing all of the data above there is no doubt that the economical growth in Chile is high and that all the luxury brands have it on their radar. If this economy keeps growing and the estimates are right, MONCLER will need to start making a presence in this emerging market because some of our competitors such as Louis Vuitton, Hermes and few others mentioned in the key players section already have a competitor advantage.
PESTEL ANALYSIS POLITICAL
STRENGTHS
South America’s most stable, secure, and prosperous nation
Performs very well in terms of government efficiency and low levels of corruption.
SOCIOCULTURAL STRENGTHS
The richest 10% of the population obtains 46.1% of the national income. Growing middle class. Chileans are, on average, the richest Latin Americans, with a median per capita household income of $23,000.
Market oriented economy characterized by a high level of foreign trade. Chile has negotiated 26 trade agreements covering 62 countries such as Canada, Mexico, South Korea, the USA, and the European Union
Median age is 33.3 years which indicates a demographic advantage in terms of number of people of working age.
Chile has undertaken reforms in health care, social security and poverty reduction policies
Rising incomes combined with reduced birth rates have led to increases in both essential and non-essential consumer spending.
CHALLENGES
A recently approved redistributive tax reform will increase the cost of doing business
ECONOMIC STRENGTHS
Ranks high on international indices relating to economic freedom, transparency, and competitiveness GDP 259 billion GDP growth rate 3.8% In 2014 average disposable income per capita CLP 5,663,000 (US$9,930). In 2015, the indicator grew by 1.8% The retail sector was boosted by the opening of the Costanera Center, South America’s largest shopping center. Exchange rate (per US$) of the Chilenean peso was 654.13 in 2015
CHALLENGES
Apparel sector showed weak growth in consumer expenditure between 20092014, but recorded real growth of 13.0% on 2015. The Chilean peso has lost 3.2% of its value in 2016
4.5 of GDP on education expenditures
CHALLENGES
Chile still shows a predominance of lower social classes, a situation that is expected to persist over the long term.
LEGAL
STRENGTHS
Foreign companies can operate in Chile without needing a local partner A majority holding interest in the capital of a local company is legal, as long as Chilean procedures and agreement formalities are respected Foreign companies established in Chile can benefit from privileged access to regional markets through different free trade agreements Foreign investors benefit from a moderate income tax on companies and their capital can be repatriated without being taxed at the level of the invested funds
CHALLENGES Chile ranked 22nd on the 2013 Transparency International Corruption Perceptions Index with a score of 71 out of 100 (where 100 is very clean and 1 is very corrupt) Work needed on enforcing intellectual property rights
TECHNOLOGICAL
STRENGTHS
ENVIRONMENTAL
STRENGTHS
Number of internet users per every hundred: 60
Chile’s nature conservancy is working to ensure sustainability
Mobile celular subscriptions per every hundred: 130
The organization is working with local communities, government agencies and private corporations to conserve and restore natural lands in which people and wildlife depend on
Chile continues to embrace and rely on the Internet and mobile technology
CHALLENGES
69% of Chileans access the Internet daily via a mobile device 76% of Internet users in Chile use social media, awarding Chile the 2nd highest social media usage in Latin America 20% of Chileans engaged in M-commerce for mobile banking, 11% as mobile wallets and 15% for mobile shopping
CHALLENGES
Regarding research and development output, Chile underperforms compared to leading countries
Conservation of critical lands Water security is critical in the areas of agriculture and for human consumption. Untreated sewage poses the major threat Deforestation Pollution of air, water and land from industry and transportation Endangered species
Chile’s steady economic growth has transformed Santiago into one of Latin America’s most modern metropolitan areas, with extensive suburban development, dozens of shopping centers, and impressive high-rise architecture. It is home to many multinational regional headquarters, a developed financial centre and very modern transport infrastructure Santiago lies on a plateau between the Andes, just 50 km away from ski centers and the coastal Mountain Range of the Pacific, 120 km away from the coast
The city population is very influenced by the internet and e-commerce shopping is growing. Broadband internet penetration among Chilean households reached 42% in 2014, equal to the highest rate in Latin America. In addition, many Chilean consumers are becoming increasingly familiar and comfortable with internet retailing. Chilean people also enjoy socializing in café, bars nightclubs as well as shopping is one of the most frequent leisure activity especially since it evokes image and status. Santiago its very popular attraction for outdoor adventure seekers, thrilled by the idea of being able to ski in the morning and surf in the afternoon. Snowboarding and snow-skiing are two of the most popular and frequent outdoor activities
Santiago de Chile is the capital and largest city of Chile with a population of 6.4 million in Greater Santiago equivalent to approximately one-third of Chile’s total population (17.5 million). Nearly 90 percent of Chile’s population lives within 200 miles of the Greater Santiago area. The population density in the city is 8,464 inhabitants/ km2. Santiago’s residents predominately have Spanish ancestry, though some have French, German, Italian, or Croatian ancestry. American Indians and people from the Middle East and Korea also have significant populations in Santiago as do people of mixed white and Indian ancestry, or mestizos. Santiago has a diverse, cosmopolitan culture, influenced by the different groups of immigrants arriving from Europe, Asia, the Middle East and the rest of Latin America which result on 2% of the population. 15.88% of the population is 15-24 years old and 43,2% is from 25-54, what makes it perfect for our pop-up shop opening
HISTORY & DESCRIPTION
HISTORY & DESCRIPTION
SCOPE & SIZE
SCOPE & SIZE
-PART OF THE KERING GROUP -FOUNDED IN FLORENCE IN 1921 -FEMENINE, ITALIAN HERITAGE, LUXURY -CRAFTMANSHIP
-FOUNDED IN 1854 -PART OF THE LVMH GROUP -HERITAGE, LUXURY, GOODS -CRAFTMANSHIP, TREVEL/JETSETTER -$9.4-2014 -3,708 LOCATIONS -PRIME LOCATION ALONSO D COR -2013, BOUTIQUE IN PARQUR ARAUCO
-$4 B-2003 -278 STORES -SEPTEMBER OF 2015, 1ST BOUTIQUE
HISTORY & DESCRIPTION
-FOUNDED IN 1837 IN PARIS -”LUXURY, CRAFTMANSHIP & TIMELESS FRENCH HERITAGE”
SCOPE & SIZE
- €4.1B-2014 -311 STORES -PRIME LOCATION ALONSO D COR. - SOCIALITE EVENTS
HISTORY & DESCRIPTION
-FOUNDED IN 10975 IN MILAN BY GIORGIO ARMANI SOPHISTICATION, ELEGANCE, ITALIAN HERITAGE AND MINIMALISM
SCOPE & SIZE
-€2.4 B. BY 2014 -250 STORES IN 34 COUNTRIES -OPENED ARMANI CAFFE AN EXCLUSIVE RESTAURANT OFFERS A MENU THAT TRIBUTES THE ITALIAN CUISINE
HISTORY & DESCRIPTION
-FOUNDED IN 1856 -HERITAGE, LUXURY GOODS, CRAFTMANSHIP, FAMOUS FOR ITS TRENCHCOAT
SCOPE & SIZE
-£ 2.3 B- 2014 -497 LOCATIONS -JUNE 2015, FIRST BOUTIQUE -SOCIAL MEDIA PLATFORMS CAMPAIGNS
MONCLER’S TARGET CUSTOMER IS BETWEEN THE AGES OF 28-60. HE/ SHE SHOPS FOR HIGH QUALITY ITEMS, AND SEEKS INNOVATION AND TIMELESSNESS. WITH A SALARY OF 100K+ THE CUSTOMER HAS AN EXTENSIVE AMOUNT OF DISPOSABLE INCOME FOR HIGH-END FASHION PRODUCTS. THE MONCLER CUSTOMER IS PASSIONATE FOR SPORTS AND IS WELL INFORMED ABOUT THE LATEST NEWS IN THE REALM OF SOCIAL MEDIA.
AREA LIFESTYLE Moncler’s pop-up shop will be located in the city of Santiago, Chile. The specific location selected for the shop is the Distrito de Lujo (luxury district), in Parque Arauco Shopping Mall in order to cater the high-net-worth customer living around the area and toursits as well. Parque Arauco is the only shopping destination in Chile showcasing the majority of our direct competitors, major luxury fashion brands and the finest restaurants. Distrito de Lujo is a sector that combines luxury shopping with the commodity of shopping in a mall. This space is located in the Boulevard’s third level, and is home to brands like Burberry, CH Carolina Herrera, Dolce & Gabanna, Emporio Armani,Emporio Armani Cafe, Ermenegildo Zegna, Louis Vuitton, Mont Blanc, Omega, and Salvatore Ferragamo. Distrito de Lujo, Parque Arauco is part of a very selected group of shopping malls the world that is home to this type of brands. For this, the mall positions itself as a tourist’s destination must-have. In addition, the selected location is within the region of Los Condes, one of the richest living neighborhoods in Santiago. Around this area there’s a variety of medium to high-end restaurants, bars, and social clubs that cater to our target customer and increases the store’s exposure and the chances of achieving our project’s goal.
SALES POTENTIAL
The store will open during winter season at the beginning of July. Moncler’s pop-up shop will be open to public for 8 weeks, all through the season. The highest ski season in Chile begins mid July and ends in the midst of October, for this the city is expected to welcome a high number of visi tors that could turn into potential customers. This period represents a sales potential for our store for the high demand of winter and ski outerwear.
Parque Arauco, receives aproximately from 2 to 2.5 million visitors monthly. Said’s group chain, which administers Parque Arauco and other important malls claimed an increase in traffic since 2012 due to innovations being offered to customers. We see an opportunity for brand exposure by locating the pop-up shop next to our direct competitors. Distrito de Lujo, is an area with high traffic of established upper-class consumers that will be exposed to Moncler when visiting the shopping area.
ESTIMATING COMPETITION Direct competition could represent a threat for Moncler’s pop-up shop. Luxury brands like Burberry, Gucci, Hermes, Louis Vuittton, and Armani are all located in Distrito de Lujo in addition to other area attractions withing the mall that represent indirect competition for us. The variety of stores and choices for the consumer can be very influential in their shopping behavior and our target customer’s disposable income might be disposed somewhere else.
AREA ATTRACTIONS/ FACTORS
Parque Arauco Shopping Center hosts night sales twice a year during the months of July and November. This innovative purchase fashion has revolutionized the market and represents a seasonal advantage to us. Customers are offered a unique shopping experience, with amazing discounts, prizes, and lots of entertainment. This event drives traffic to the store that could potentially turn into sales. Boulevard del Parque is another area within the shopping the center that carries the highest level and varied gastronomic, with exclusive stores, entertainment activities, and outdoor music. Customers are able to eat, drink, and socialize among the 20+ restaurants available. Another major attraction of this area, specially for tourists, is the isabel Aninat Art Gallery. This is home to a wide selection of Latin American artists’ expositions. In addition, the shopping center houses a theater, movie theaters, a bowling center, ice skating track, and the design floor, a space dedicated to home and decoration. Other important factors to take in consideration for our upper-class target demographic includes the valet parking service and the premium parking spots offered for customers to have instant access to Distrito de Lujo. The shopping center counts with 2035 parking spaces and one annex deck with 1910 spaces available to satisfy the demand. The mall is car accessible by the Ave. Kennedy or the Cerro Colorado street. It also offers Arauco Pass and Arauco Chip, which are two prepaid cards for parking fees to enhance the customer’s shopping experience and have them avoid the long lines at the tolls.
Parque Arauco also offers services like banks, drycleaners, tailors, and taxi services. A key factor for our tech-savvy customers is the unique mobile app “Arauco Mapps”. This app optimizes the customer’s shopping experience by complementing him with information about the stores, shopping experience by complementing him with information about the stores, restaurants, and services on his/her phone. Customers have instant access to maps, store directions, and even allows them to mark their parking spot so they can easily find their car at the end of their shopping trip.
AVAILABILITY OF HR & PHYSICAL SPACE The pop-up shop will be a direct control operation for the eight weeks that we will be present. The selected location, Distrito de Lujo, in the 3rd floor of the shopping center gives us brand exposure due to the direct competitors that neighbor our shop. We will be located right next to Salvatore Ferragamo on the right side of the mall. Mall visitors walking towards the luxury district will be able to reach our store directly before reaching any other of the stores which increases our chances of driving traffic into the store. Moncler’s pop-up shop will be 1,076 Sqft and the monthly lease negotiated will be US $7,213 with utilities included. Given this is a commercial space, this location eliminates the need for any commercial permits. After researching the average salary of a sales associate for luxury retail stores, we concluded that selected employees will have a monthly salary of US $696. We are hiring a human resources agency in Chile called the TMF Group to for recruiting our staff, and outsourcing a Store Manager and Assistant Manager from Moncler Miami Boutique, they will be in charge of running operations and trainning the qualified staff to ensure that the human resources agency and the store are meeting Moncler’s standards.
SMELL THE POP-UP WILL SMELL LIKE FRESHLY-CUT PINE TREES WITH A TOUCH SWEET SCENTS. THANKS TO OUR FIRE PLACE WE WILL BURN SOME PINE CONES AND DRY APPLES TO HAVE SWEET SMELLING SCENT THAT FILLS THE AIR IN OUR POP-UP SHOP
SIGHT OUR HUGE WINDOWS WILL CATCH NATURAL SUN-LIGHT
TASTE WILL OFFER OUR SHOPPERS GODIVA HOT CHOCOLAT, VEUVE CLICQUOT AND EVIAN WATER DURING THEIR VISIT
TOUCH OUR CUSTOMER WILL ENJOY INTERACTING WITH THE BRAND THROUGH OUR TOUCH SCREENS WERE THEY WILL FIND VIDEOS OF MONCLER, HISTORY OF THE BRAND, PRODUCT INFORMATION AND MORE
HEAR
OUR CUSTOMER WILL ENJOY THE MUSIC WE OFFERED DURING OUR FASHION SHOWS. A MIX OF CLASSIC FRENCH MELODIES WITH URBAN TECHNO
ONCE IN THE FITTING ROOM, A SHOPPER CAN STILL BROWSE THE ONLINE CATALOG, AND REQUEST THAT ADDITIONAL ITEMS BE BROUGHT TO THEM.
PROMOTIONAL PLAN
Moncler Chile’s promotional plan is spread through a three-month schedule. We will start promoting the shop via social and paper media a month before opening. The month prior we also partner with “El Parque Arauco Mobile App” to promote our opening in the mall as well as our interactive space in the mall “Le Chocolat Moncler”, a lounge for coffee and hot chocolate in the center, most visited area of the mall. We will also have bloggers promoting us through mentions on their blogs. Each final day of the week we will also post a video to our YouTube showing the making of the shop, the events on the shop and some of our shopper experiences. A week prior our opening Moncler will launch a press preview, the brand will host a dinner in the store location. This invite-only event is an exclusive look at your pop-up shop for the city’s local journalists and bloggers interested in having the first look at what Moncler has to offer to the Chilean customer. For the grand opening we will have a launch a welcome party at “Le Chocalat Moncler” Nicole Putz, a Chilean fashion blogger recognized by th NY Times for her style and influence will host our event and will become the brand ambassador of the brand for the 2 months. After the grand opening we will continue promoting through social media and print media to keep the consumer hyped about the short duration of the Moncler presence in Chile. “Le Chocolat Moncler” will will open for the for the two months only on the weekends from Friday to Sunday, the purpose of the location is to drag attention and drive customers to the pop-up shop since the location is in the Luxury District farther from the mall most transited area. This lounge will offer a variety of French day drinks and will be host by models wearing Moncler coats and merchandise, in order to promote our products. After we have built a sturdy presence in Chile we will start passing out catalogs with every purchase and also collecting e-mails to have a more direct promotional effort with the consumer. For post launch promotions we will continue e-mailing the consumer and also sending catalogs. Our other social media efforts will also continue so that we can keep the new customer base updated on all things Moncler
CONCLUSION
Chile and its people’s culture have proven to be receptive and knowledgable of the luxury market, so the introduction of Moncler to their market would not be a shock to them. The political, economical, social, and environmental conditions in Chile contribute to a positive development in the luxury sector. Moreover, the retail market is growing along with the luxury sector, and those are positive factors that work in Moncler’s favor. Also, after analyzing Moncler’s competitive strengths in terms of brand image/perception and sales potential in Chile, we can agree that there is an opportunity to expand and grow into Latin American countries. Therefore, we believe that Moncler’s pop-up shop venture will be successful and that there is a potential for a future permanent store in Santiago de Chile.
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