I N N O V A T I V E S T R A T E G Y S P R I N G 2 0 1 6 | FLOR ESSOSA KIM MIRO SIMMONS TOOHEY
Table of Contents 01 INTRODUCTION 02 COMPANY OVERVIEW About Moncler Market Overview Market Positioning Placement Communication and Promotional Activities
03 TARGET MARKET Demographic segmentation Lifestyle / Psychographic / Behavioral Segmentation Customer Profile
04 OMNICHANNEL AUDIT Physical Stores E-commerce Site Moncler App Social Media Platforms
05 STRATEGIC INITIATIVE Proposal Implementation Financial Statement Metrics
06 CONCLUSION Long-term Benefits References
FASM415 - NON-TRADITIONAL RETAILING Professor Grance Franca Canepa
INTRODUCTION
01
Technology has been the leading force in the retail industry as many companies have been on the pursuit of implementing new ways to attract and engage customers. We are in the age where technology is constantly evolving, making retail interactions more fun and purposeful than it has ever been 20 years ago. The following group project was created at the Savannah College of Art and Design for the course, Non-Traditional Retailing - FASM 415. This course presents a comprehensive study of direct marketing in the fashion industry, a study of the growing internet business, and its dramatic impact on the retail industry. This case study analyzes Italian retailer Moncler and proposes innovative ideas for the development of its omnichannel strategy in this ever-changing industry.
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02
COMPANY OVERVIEW
About, Market Overview, Positioning, Placement, Communication, and Promotional Activities
THE MONCLER BRAND Founded in 1952 in Monestier-de-Clermont, Grenoble, France, Moncler is now located in Italy. Over the course of the years the brand has merged style with ongoing technological research, which harnesses the knowledge of mountaineering experts. Under the leadership of Remo Ruffini, who took over the company in 2003 and is now Chairman and CEO, Moncler has pursued a clear but simple philosophy: to create unique products of the highest quality, “timeless”, versatile and innovative. The motto “born in the mountains, living in the city” tells how the Moncler brand has evolved from a line of products used purely for sport purposes to versatile lines that consumers of all gender, age, identity and culture can wear on any occasion. The
range
of
Moncler
brand
products
has
expanded over the years and now spans the following areas: high fashion,with the Gamme Rouge and Gamme Bleu collections,characterized by the exclusivity of the products and the limited distribution to the most prestigious boutiques in the world, the Grenoble collections, where the technical and innovative aspect is greater, the Special Projects, consisting of experimental labs, the result of ad hoc collaborations with avantgarde designers, and the products of the Main collection that combine high quality for various uses. Moncler also offers a line dedicated to accessories such as shoes and bags, a line of eyewear and sunglasses, and the line Enfant, dedicated to childrenswear. In 2013, Moncler listed on the Italian Stock Exchange at 10.20 euros per share and currently is one of the fastest growing luxury brand.
MISSION
Moncler’s goal is to pursue the sustainable and responsible development of the brand in the luxury goods segment throughout the world, in harmony and in line with the uniqueness of its heritage.
BUSINESS STRATEGY Their objectives within their business strategy include: • Reinforcing and expanding the monobrand retail distribution network • Selective development of the wholesale distribution channel • Developing the Moncler brand and its product ranges globally • Direct control of strategic business
CORPORATE BODIES
BOARD OF DIRECTORS Remo Ruffini Virginie Sarah Sandrine Morgon 2 Nerio Alessandri 1, 2, 3 Vivianne Akriche 3 Alessandro Benetton 1 Christian Gerard Blanckaert Sergio Buongiovanni Marco Diego De Benedetti 2, 3 Gabriele Galateri di Genola 1, 2, 3, 4 Diva Moriani 1, 2, 3 Pier Francesco Saviotti
Chairman
BOARD OF STATUTORY AUDITORS Mario Valenti Antonella Suffriti Raoul Francesco Vitulo Lorenzo Mauro Banfi Stefania Bettoni
EXTERNAL AUDITORS KPMG S.p.A.
Independent Director Nomination and Remuneration Committee 3 Control, Risks and Sustainability Committee 4 Lead Indipendent Director 1 2
Chairman Regular Auditor Regular Auditor Alternate Auditor Alternate Auditor
Remo Ruffini Chairman and CEO, Moncler
OWNERSHIP STRUCTURE
As of December 31, 2015 Moncler’s Annual Report includes Moncler S.p.A. (Parent Company), Industries S.p.A. and 30 consolidated subsidiaries in which the Parent Company holds, directly or indirectly, a majority of the voting rights, or over which it exercises control from which it is able to derive benefits by virtue of its power to govern both on a financial and an operating aspects.
Moncler S.p.A.
Parent company which holds the Moncler brand
Industries S.p.A.
Sub-holding company, directly involved in the management of foreign companies and distribution channels (DOS, Showroom) in Italy and licensee of the Moncler brand
Industries Textilvertrieb GmbH
Company that manages DOS and promotes goods in Germany and Austria
Moncler Belgium S.p.r.l.
Company that manages DOS in Belgium
Moncler Denmark ApS
Company that manages DOS in Denmark
Moncler España SL
Company that manages DOS in Spain
Moncler France S.à.r.l.
Company that manages DOS and promotes goods in France
Moncler Istanbul Giyimve Tekstil Ticaret Ltd. Sti.
Company that manages DOS in Turkey
Moncler Holland B.V.
Company that manages DOS in the Netherlands
Moncler Hungary KFT
Company that manages DOS in Hungary
Moncler Prague s.r.o.
Company that manages DOS in the Czech Republic
Moncler Rus LLC
Company that manages DOS in Russia
Moncler Suisse SA
Company that manages DOS in Switzerland
Ciolina Moncler AG
Company that manages DOS in Switzerland
Moncler Sylt Gmbh
Company that manages DOS in Sylt
Moncler UK Ltd
Company that manages DOS in the United Kingdom
Moncler Brasil Comércio de moda e acessòrios Ltda.
Company that manages DOS in Brazil
Moncler Canada Ltd
Company that manages DOS in Canada
Moncler USA Inc
Company promotes and distributes goods in North America
Moncler USA Retail LLC
Company that manages DOS in North America
Moncler Asia Pacific Ltd
Company that manages DOS in Hong Kong and in Macau
Moncler Japan Corporation
Company that manages DOS and distributes and promotes goods in Japan
Moncler Shanghai Commercial Co. Ltd
Company that manages DOS in China
Moncler Shinsegae Inc.
Company that manages DOS and distributes and promotes goods in Korea
Moncler Singapore Pte. Limited
Company that manages DOS in Singapore
Moncler Taiwan Limited
Company that manages DOS in Taiwan
Moncler Enfant S.r.l. in liquidazione
Company that distributed and promoted goods from the Moncler Baby and Junior brand
Moncler Lunettes S.r.l. in liquidazione
Company that was responsible for coordinating the production and marketing of products in the Moncler eyewear brand
White Tech Sp.zo.o.
Company that manages quality control of down
Moncler CZ S.r.o. in liquidazione
Not operating company in liquidation
Moncler Middle East FZ-LLC
Not operating company
Industries Yield S.r.l.
Company that manufactures apparel products
02 C O M P A N Y O V E R V I E W | 1 6
Key Events in Moncler History TIMELINE
1952
1954
1968
René Ramillon and André Vincent found the Moncler brand in the mountains near Grenoble.
Moncler makes its first nylon down jacket and supplies products for the Italian expedition to K2.
Moncler becomes official supplier of the French Alpine skiing team at the Winter Olympics in Grenoble.
One year later, it also sponsors the French expedition to Makalu.
2009
2010
Moncler launches its Gamme Bleu men’s collection.
Moncler’s Grenoble collection debuts in New York.
1980’s
2003
2006
Moncler products start to become popular in towns and cities, becoming a true fashion phenomenon.
Remo Ruffini becomes a shareholder in the Group.
2007
Moncler launches its Gamme Rouge women’s collection.
Moncler opens in Paris, on the central Rue du Faubourg SaintHonoré, its first urban store.
2013
2014
2015
Moncler lists on the Italian Stock Exchange.
Moncler provides the technical equipment for the K2 – 60 Years Later expedition team.
First Sustainability Report and Sustainability Plan.
The first Moncler eyewear collection is unveiled.
Joint-venture controlled by Moncler is established in Korea. Acquisition of a production site in Romania. Aims to create a R&D hub for down jackets and vertically integrate a portion of its production. 02 C O M P A N Y O V E R V I E W | 1 6
HISTORY
CURRENT
BEFORE 1952 was the beginning of Moncler, an abbreviation of Monestier de Clermont, a mountain village near Grenoble in France. René Ramillon and Andrè Vincent founded the Company, which was initially dedicated to sporting garments for mountaineering. The first Moncler down jacket was made in 1954 and its outstanding technical performance made it an instant hit. The same year Moncler actually supplied the technical equipment for the Italian expedition to K2; in 1955 it supplied the French expedition to Makalù and in 1968 Moncler became the official supplier of the French skiing team during the winter Olympics in Grenoble. In the ’80s Moncler garments became more diffuse, becoming a fully-fledged “fashion phenomenon” amongst younger consumers. The ownership of the Moncler brand was acquired by the Pepper company in 1992, before transferring to Fin.Part S.p.A. in 1998. This company operated in the highend clothing sector, and its aim was to create a reference point within the Italian luxury goods market. In 1999 Remo Ruffini became part of the Fin. Part group with the role of Creative Director of Pepper, and began a process of repositioning the brand. This led to Moncler products becoming increasingly unique in nature.
Remo Ruffini then bought out the brand in 2003, who implemented the strategy of globalizing the down jacket. Working on fit and materials, the universal spirit of Moncler became increasingly identifiable, as did the variety of uses it lent itself to at any moment of everyday life. Moncler then released Gamme Rouge in 2006, the first high-end collection dedicated to women and was launched with the aim of continuing diversification of the range of products from the viewpoint of exclusivity. In 2007 the first directly-managed Moncler store set in an urban location was opened in Paris. The Paris boutique signalled the start of a series of stores opened in key cities throughout Italy, Europe, Asia, Japan and the Americas. With the aim of pursuing a strategy to diversify its range of products, following the launch of the women’s Gamme Rouge range, in 2009 the first Moncler brand collection for men, Gamme Bleu, was launched. The range responded to the criterion of sartorial production of canvas down jackets which lends the product a unique touch. In 2010 the first Moncler brand Grenoble collection designed for men and women and destined for outdoor sports was launched. The collection, which is technical but still features elements of fashion, is inspired by the brand’s time-honoured garments, particularly for skiing. On December 16, 2013 Moncler (MONC IM; MONC MI) started trading on the Italian stock exchange, topping a 47% increase at the end of its first trading day, becoming the most successful IPO in Europe in 2013 having also been the largest in Italy since 2011. The IPO price has been set at Euro 10,2 per share, equal to a market cap of Euro 2.55bn, at the top of the price range set during the offer. Demand from worldwide institutional investors has been equal to 31 times its offer, while the Italian retail demand has been almost equal to 20 times its offer.
FUTURE Throughout the different geographical areas, Moncler has different long-term interventions for sustainable growth. Italy: To reinforce leading position, consolidate retail, limit selections of wholesale, and target main cities (Rome and Milan) EMEA: To increase market share in key markets, maintain leading position in France, leverage travel retail potential, and consolidate wholesale distribution Asia: To further brand awareness, test new potential markets, and track Asian travellers’ flow globally. America: to further brand awareness, increase market share, complete North American retail network roll out, enhance wholesale penetration, and test new markets. To continually seek sustainable revenue growth in retail, Moncler puts their focus on clients, quality of service and products, and expansion of select retail stores. In wholesale, they want to consolidate wholesale penetration with the best clients. With gross margin improvement, Moncler wants to utilize channel mixing - first by focusing on internal improvements such as the quality, staff-training, clientfocus activities, and to maintain healthy rent levels. Investing the in corporate organization will help to create a solid platform, and increasing investments will help support the uniqueness of the brand. Solid cash flow will help improve in areas of retail, wholesale, and corporate headquarters. Through the investment of 50-55 million euros annually, expansions and relocations are able to be executed, as well as the opening of new flagship stores and refurbishing existing stores. Wholesale can be improved through shop-in-shops expansion and refurbishment, and the remaining money can be utilized to improve the headquarters, IT infrastructure, and production of the company.
SWOT ANALYSIS STRENGTHS •
Unique positioning in the luxury sector, providing quality and timeless goods that intersect heritage and innovation on an international level
•
Control over distribution network
•
Geographical diversification
•
Flexible and close-knitted business model focused on quality control and chain of value
•
Carefully thought out communication strategy
WEAKNESSES •
Content diversity in social media
OPPORTUNITY •
Continuous international growth
•
Select expansion of product categories
•
Establishing and focusing on direct relationship with customers by anticipating their needs and desires
•
Find ways to be sustainable in practice when developing products
•
Continuous brand reinforcement
•
Digital Integration of more social media platforms in the current day and age
THREATS •
Deterioration of markets in segments of the world due to Moncler being located in diverse locations
•
Maintaining brand image and recognition throughout the different countries due to the cultural differences
•
The interruption and misplacement of management personnel
•
The interruption of relationship with third party manufacturers that do not comply with high quality requirements of the company
•
The unavailability of high quality raw materials to produce products and the cost to source them
•
Strong competition of other luxury brands that would disrupt distribution network
MARKET OVERVIEW
The luxury market in 2015, according to Bain Luxury Study, ballooned to more than 250 billion euro, which is a 14% increase since 2014. Chinese consumers play a primary role in the growth of luxury spending worldwide. They account for the largest portion of global purchases (31%), followed by Americans (24%) and Europeans (18%). The e-commerce segment continues to grow, with a 7% growth in market share for 2015, as customers in Europe and Americas seek an omnichannel experience. Moncler is under the luxury goods market in which they recorded a total revenue of over 880 million euro and an EBITA of 300 million euro. Against this background, thanks to results that exceeded analyst expectations and continuous engagement with investors and financial analysts, Moncler’s shares outperformed comparable shares in the luxury goods sector and the Italian stock market as a whole, leading with 16.98%.
$2,500
Mass
Excl.
$125 x - Axis Mass market - Exclusivity y - Axis Accessibility $125 - $2,500
MARKET POSITIONING
Moncler is positioned in the luxury segment of the U.S. outerwear industry, with Bogner, Brunello Cucinelli, Burberry, Chloe, Canada Goose, Mackage, Ralph Lauren, Georgio Armani, Under Armour and Patagonia as direct competitors (Morningstar: Moncler Industry Peers, 2016). Moncler and its competitors are all well established brands with premium pricing, high quality and distinctly designs products that create a prestigious brand image for each of the companies. Outerwear brands never used to be considered part of the luxury category, with the exception of Burberry, whose coats were never known for warmth and functionality. But Moncler and its industry peers have redefined outerwear, and its new perception as luxury.
MONCLER’S COMPETITIVE ADVANTAGE
Moncler’s clear and coherent strategy presents a strong competitive advantage over its industry rivals. Since the relaunch of the Moncler brand in 2003 by Chairman Remo Ruffini, Moncler has experienced consistent, substantial growth as a result of the company’s reconstructed strategy. This multifaceted strategy has managed to integrate Moncler’s unique brand identity with the positioning it has achieved in the luxury goods sector, a diversified consumer target, by increasing direct control over distribution and by employing innovative communication with the end consumer (Moncler S.p.A., 2015). To further analyze the key factors of the Moncler success story, is to begin with the company’s unique positioning. Moncler’s unique positioning in the luxury sector is on an international scale, with a history that spans over 60 years, which combines the brand’s rich heritage with innovative, versatile and timeless products. The excellence in Moncler’s product quality and innovation is due to the company’s ability to identify new trends while simultaneously maintaining the brand’s distinguished features. The Moncler Group controls its distribution network, both wholesale and retail, through directly managed showrooms. The brand’s retail strategy of store placement in top-tier multibranded stores ,such as Neiman Marcus, main luxury department stores ,such as Barneys, and the world’s most prestigious shopping streets and resorts have made it possible to strengthen Moncler’s exclusive position. Moncler has geographical diversification with a consolidated presence in Asia, Europe, North and South America. Moncler’s business model is flexible and scalable, owing to an organization that is efficient, integrated and focused on quality control and the value chain. The company maintains direct management and coordination of phases with the greatest added value
and use of hand selected outsources for manufacturing purposes. This method of business operations establishes stable and long-lasting relationships between Moncler and its partners in supply chain and distribution. The Moncler company has a close-knit and motivated senior management team that’s led by CEO and Chairman Remo Ruffini, an industry leader with a wealth of experience which has ensured the ability to deliver substantial results in key areas for centralizing the Moncler Group. These results include development of the retail channel, brand management and geographical expansion. And lastly, Moncler has developed a careful, targeted and innovative communication strategy that generates consumer interest in the brand and its products. This communication strategy stimulates consumer engagement while also expressing the values of Moncler, which strives to be a style icon that is both transversal and timeless.
MONCLER’S COMPETITORS
BOGNER Founded in 1932, Bogner is a sports and outerwear primarily engaged in manufacture of tracksuits, ski suits, swimwear and of other clothing accessories such as gloves, belts,hats, shawls, ties, cravats, fur skins, and footwear. Bogner notably combines sport and function with fashionable style. Known synonymously as Bogner and Bogner Sport, the company quickly accumulated a distinct customer base that could afford higher-priced ski apparel. These loyal Bogner customers appreciate the contemporary silhouette, excellent craftsmanship, technical fabrics, and trendy styles that make this brand of skiwear unique. Skiwear products, such as the Bogner polarized ski goggles, helmet, and ski pants retail between $300 to $1,600.
BRUNELLO CUCINELLI Brunello Cucinelli is an Italy-based luxury brand that manufactures and sells cashmere products and accessories collections for women and men. The company was founded in 1978 and has a product portfolio that includes knitwear, coats and jackets, leather clothing items, suits, dresses, shirts, blouses, trousers, accessories and other leather goods. The company is renowned for its staple product category, menswear. Suits retail between $2,800 and $4,200 (Brunello Cucinelli Inc., 2016). As a marketing strategy, Brunello Cucinelli markets its products through direct retail channel; wholesale monobrand channel, consisting of franchised monobrand retail stores, and wholesale multi brand channel, which includes department and independent multi brand stores (Brunello Cucinelli SpA, OneSource 2016). The company operates through a number of subsidiaries located in Italy,Japan, Belgium, the United States, France,Switzerland, Germany, Austria and others.
BURBERRY Burberry is a British luxury fashion house that was founded in 1856. The company operates retail and wholesale businesses, and a licensing network. Burberry has positioned its brand in the minds of consumers to be functional luxury. The company maintains a product line consisting of products that fall into one of two main categories: fashion or
continuity. Products include men’s, women’s, and children’s ready-to-wear outerwear, fashion accessories, fragrances, sunglasses, and cosmetics. The Burberry coat is one of the brand’s most popular products with a cost ranging between $500 to $3,800 (Burberry Inc., 2016).
CANADA GOOSE Canada Goose is a Canadian manufacturer of Arctic luxury apparel, which was founded in 1957 by Sam Tick, originally under the name ‘Metro Sportswear Ltd’. Canada Goose has grown into one of the world’s leading makers of luxury apparel. Canada Goose continues to innovate its brand by launching lighterweight products suitable for diverse climates and high-intensity activities. The company provides a wide range of jackets, parkas, vests, hats, gloves, shells and other apparel. While Canada Goose is lower in price than Moncler, its prices are still steep, with costs ranging from $525 to $1,275 (It’s Going Down;Luxury outerwear brands Moncler and Canada Goose have turned puffy winter coats into legitimate luxury items, Chavie Lieber, 2016) .
CHLOE French fashion house, Chloe was founded in 1952 by Gaby Aghion. Chloé’s collections are diversified into five major sections including women’s ready-to-wear, accessories, children’s wear, fragrance and ‘See by Chloe. Bags and shoes continue to rank among Chloé’s most coveted wares, with prices ranging from $565 to $2,300 (Chloe, Nordstrom, 2016).
GIORGIO ARMANI Giorgio Armani is an Italian fashion house founded by Giorgio Armani in 1975 which designs, manufactures, distributes and retails haute couture, ready-to-wear, leather goods, shoes, watches, jewelry, accessories, eyewear, cosmetics and home interiors. The brand markets these products under several labels, from the most expensive to the most accessible. Such labels are Giorgio Armani Privé, Emporio Armani, EA7, Armani Collezioni, Armani Jeans,and Armani Exchange among others. The brand utilizes the association of the Armani name with high-fashion, benefiting from its prestige in the fashion industry. The Armani
brand has even expanded into the restaurant and hotel industries. A classic Armani suit ranges from$1,50 to $3,800 (Armani, 2016).
address major concerns.
RALPH LAUREN MACKAGE Mackage is a Canadian outerwear company, which was launched by childhood friends Eran Elfassy and Elisa Dahan in 1999 and has seen almost a 30 percent increase in sales over the last few years (Chavie Lieber, 2016). After such successful years in the outerwear business for men and women, Mackage expanded in 2012, into children outerwear with their Mackage Mini collection. In 2013, Eran and Elisa introduced their handbag collection which furthered Mackage’s evolution into a full lifestyle brand. As for the company’s outerwear, Mackage coats retail for at least $650 and cost as much as $1,850 (Lieber, 2016). Its puffer coats are 90 percent down, just like Moncler’s, with a quality of 700 fill power, meaning the coats are extra fluffy. The coats themselves are comprised of six layers, each working to make the pieces water-and-stain repellent, windproof, breathable, down-preserving, and above all, warm. Mackage also lab-tests its coats and makes its impressive results known which helps fuel purchases.
PATAGONIA Patagonia, founded in 1973, is an apparel company that manufactures clothing for various sports, such as skiing, rock and alpine climbing, snowboarding, surfing, paddling and trail running. It offers a wide range of clothing products, such as jackets, vests, shirts, shorts, pullovers, pants, fleeces and sweaters for men and women. Best sellers include the down sweater that retails for $120 and the back pack that retails for $130 (Patagonia, 2016). As for Patagonia’s market strategy, the company uses more of an incremental innovation approach to improve upon their existing products and processes. These incremental innovations are utilized as a competitive advantage for the company and include new technical systems for their apparel and gear. Patagonia also managed innovative teams to create value and satisfy customer wants. The structure of these innovative teams is functional, meaning that each department focuses on an assigned area or task and then ultimately, all departments work together to
Founded in 1967, Ralph Lauren is a leading global player in the design, distribution and marketing of luxury lifestyle products such as men’s, women’s and children’s apparel, accessories, fragrances and home furnishing. Ralph Lauren collections are available at virtually 13,000 retail locations internationally, including numerous upscale and mid-tier department stores. It operates more than 460 Ralph Lauren and Club Monaco retail stores worldwide, 540 concession-based shopswithin-shops and 10 e-commerce sites. The Company operates in wholesale, retail and licensing. Ralph Lauren’s best sellers are the Polo shirts, casual shirts and sweaters. These products range from $85 to $400 in price (Ralph Lauren, 2016).
UNDER ARMOUR Under Armour is American sports apparel company, producing performance apparel, footwear and accessories for men, women and youth. Its apparel is offered in various styles and fits to improve comfort and mobility, regulate body temperature and improve performance regardless of weather conditions. Its footwear offerings include football, baseball, lacrosse, softball and soccer cleats, running, basketball and outdoor footwear. The company’s growth strategy is to continue to broaden Under Armour’s product offerings, target additional consumer segments, and secure additional distribution of Under Armour products. The product line strategy consists of creating a diverse product line. Lastly, the company’s sports marketing strategy entails entering into outfitting agreements with a variety of collegiate and professional sports teams, sponsoring an assortment of collegiate and professional sports events, and selling Under Armour products directly to team equipment managers and to individual athletes (Robert Daigle, 2014). Under Armour best sellers include the running baselayer leggings that retail at $65 and the waterproof jacket that retails for $200 (Under Armour, 2016). Daigle, 2014). Under Armour best sellers include the running baselayer leggings that retail at $65 and the waterproof jacket that retails for $200 (Under Armour, 2016).
PLACEMENT Volume of Sales and Number of Stores
To date, the Group’s core business are the study, design, production and distribution of clothing for men, women and children and related accessories under the Moncler brand name. Currently, Moncler operates in about 70 countries and in 4 main geographical areas: Italy, EMEA, Asia, and America. In 2015 Moncler had 1798 Full-Time Equivalent employees and operates through a network of 208 mono-brand stores (of which 174 Directly Operated Stores), as well as through the wholesale distribution channel. The joint venture with Shinsegae in South Korea allowed Moncler to switch 12 mono-brand stores from wholesale to retail. The retail segment is responsible for 70% of revenue, which equals to 619.7 million euros compared to 430.7 million euros in 2014. Wholesale is responsible for almost 30%, which is of 260.7 million euros compared to 263.5 million euros in 2014. In Asia revenues increased 28% at constant exchange rates with a solid performance in China, Hong Kong and Japan. The company recorded 27% growth at constant exchange rates in the Americas, and 15% growth in the EMEAs. 5% of the growth came from Italy by the good results of the DOS.
Financials in USD (mil) Filed Currency EUR Exchange Rate (Period Avg.) 000000
SCOPE & SIZE 174 Directly Operated Stores (DOS). Italy EMEA (excl. Italy) Asia & Rest of the World Americas
19 53 82 20
34 wholesale mono-brand store (Shop-in-Shops) TOTAL:
208
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 form January 2016 until December 2020 with the possiblity 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 to partially integratin production.
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).
MARKETING STRATEGIES
Current Communication and Promotional Strategies
Moncler has been at the cutting edge for more than 60 years, strongly anchored by its unique heritage. But having a unique background also means that it has to be different in how it tells its story. It is this uniqueness that Moncler has always pursued. Rooted in this ethos, the brand’s marketing and communications aim to reinforce its values and transfer their implications through a clear strategy, which has contributed to establishing Moncler as an internationally renowned luxury brand. All Moncler’s marketing initiatives seek to ensure consistency between the company’s values, the product and the target customers, with the aim of maintaining a high brand reputation. These principles guide every phase of the value chain: from presentation of new collections to retail and wholesale sales activities. All this is distilled into advertising communications in the specialist press, leading domestic and international newspapers – both print and online – and into social media, as well as shows, promotions, sponsorships and events in boutiques.
WINDOW DISPLAYS Window displays are a unique yet key strategy in marketing, which enables the exploration into the infinite possible interrelationships between art and creativity, interpreted as a free expression of Moncler’s identity. Given boundless creativity, Moncler’s window displays have always been highly recognisable and distinctive, each telling original stories, as in the latest iteration which features landscapes of stylised mountains populated by modern-day skiers.
ADVERTISING CAMPAIGNS Moncler’s advertising has been highly effective, as the brand reached out to famous photographers to create stories beyond their products, such as the A/W 15 collection campaign shot by Annie Leibovitz. This storytelling campaign has opened up opportunities for the brand to engage with customers on an emotional level as it gradually releases more of the story online.
DIGITAL Web, Social Media, Mobile: The brand is fully represented on multiple platforms online. These platforms include Facebook, Youtube, Instagram, Twitter, Pinterest, Google +, Weibo, and WeChat. Moncler also has a website and mobile app. The company dedicated significant resources and investments in 2015 towards increasing its brand presence on global social media and to working with mobile-oriented properties such as WeChat in Asia, achieving substantial engagement growth (Facebook +115%, Twitter +885%,Instagram +127%,). The website was launched in 2015, operating in 35 languages and five different homepages depending on location. This website builds towards the omnichannel integrated approach by being able to experience shopping and view editorials side-by-side.
EVENTS AND FASHION SHOWS Moncler also stands out for its unique and original communications, by developing and testing innovative modes of expression in brand events around the world. In 2015 Moncler held over 100 events, including corporate events, fashion shows, events connected to new store openings and CRM events. It all adds up to a packed programme of initiatives, each reflecting Moncler’s brand values. Moncler has held a photographic exhibition in support of amFAR, the foundation for aids research, and opened a special flagship store in collaboration with FriendsWithYou in Ginza, Japan to show Moncler’s ongoing relationship with new creatives. Presentations of the Moncler Gamme Bleu, Moncler Gamme Rouge and Moncler Grenoble collections are always spectacular. The company holds fashion shows during the Milan, Paris and New York fashion weeks, with a total of five each year (two in Paris for Moncler Gamme Rouge, two in Milan for Moncler Gamme Bleu and one in New York for Moncler Grenoble). These events enable Moncler to transmit the originality and distinctiveness of its brand, forging strong links with leading fashion publications, domestic and international journalists, major multi-brand wholesale customers and important opinion leaders and stakeholders.
PARTNERSHIPS Many partnerships and collaborations occur through Moncler that align with the brand identity and its uniqueness in exploration and travel. Several partnerships and collaborations that were noteworthy was the partnership with explorer Michele Pontrandolfo, who wore Moncler in his solo exploration of the south pole, to promote its Grenoble AW 15 Collection, and Leica, which the two brands created a limited edition camera for explorers and adventure enthusiasts alike. Other collaborations include FriendsWithYou, Dan Holdsworth, and many more.
CRM According to Mr. Ruffini’s interview with the Straight Times, he said “We are not very keen to be in the fashion system. We try to make products that last for years and a product that lasts for years cannot be very fashionoriented.” Creating products that are long lasting is important for Moncler because it enables the brand to keep the customers’ trust and develop an ongoing relationship. Moncler offers an excellent customer care service for their customers when shopping both online and at their physical stores all throughout the world. The brand is also transparent in their practices and allows customers to access information concerning their supply chain and manufacturing. The brand is constantly striving for the best for their customers, and coming up with innovative ways to capture the hearts of new ones. Their goal is to continue to impress them with extremely high quality contemporary and innovative products and excellent, selective and personalised service, with their unique and yet universal language.
Advertising expenses were 57.8 million euros, representing 6.6% of revenues, the same as in 2014. The Group continued to invest in marketing and advertising in order to support and spread awareness and the prestige of the Moncler brand. The weight of advertising expenses on turnover is equal to 6.6% in 2015 (like in 2014), while in absolute value, it goes from Euro 46.1 million in 2014 to Euro 57.8 million in 2015, with an absolute change of Euro 11.7 million (+25.6%). Selling expenses reached 253.5 million
euros, equivalent to 28.8% of revenues compared to 26.4% in 2014; this increase is primarily due to the expansion of the retail channel. Financial expenses were 1.7 million euros; lower compared to 6.1 million euros in 2014; both amounts benefited from foreign currency gains, equal to 4.0 million euros in 2015 andand to 5.8 million euros in 2014. Excluding FX Gain/ (Losses), the financial costs were equal to 5.7 million euros in 2015, compared to 11.9 million euros in 2014. Taxes amounted to 83.1 million euros, with a 33.1% tax rate.
TARGET MARKET
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Moncler’s target customer are between the ages of 29 – 65. They look for products that are not only high quality but innovative and timeless in their closet. With a starting salary of 100K, these customers have a large amount of disposable income which they mostly spend on traveling and high- end fashion. They are constantly looking for an excuse to be in the outdoors and enjoy doing sports. Most of these customers are Innovators and Experiencers in the VALS segments. They are self- directed consumers who have a wide variety of interests and activities. At the same time, they are on top of the latest trends and are not afraid to go against the flow. Making them a perfect match for Moncler’s mantra...
‘Born in the mountains, lives in the city.’
SEBASTIAN Age: 41
GILLIAN Age: 33
Education: Master’s in Finance, University of Pennsylvania
Occupation: Financial analyst Income: $320,000 Hometown: Washington, D.C. Marital Status: Single Hobbies: Surfing, Snowboarding, Reading
Vacations: Places he has never been
before, recent travels include France and Australia
Weekend Getaway: Aspen, Colorado Personality: Adventurous, Confident, Decisive, Genuine, Innovative
Education: Bachelor’s in Journalism, New York University
Occupation: Magazine Editor Income: $180,000 Hometown: Manhattan, N.Y. Marital Status: Married Hobbies: Yoga, Skiing, Social Events Vacations: The Alps, Switzerland Weekend Getaway: The Hamptons Personality: Confident, hard-
working, Creative, Innovative, Sophisticated, Enjoys problemsolving challenges
OMNICHANNEL AUDIT
Social Media, E-commerce, and Physical Store Performance
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The different platforms are utilized to communicate with the customers and allow customers to understand the world of Moncler. Although the social media platforms were strong in showcasing information concerning the brand, there was a lack of variety in content across all platforms. In order to keep the customers interested, Moncler should generate content that is diverse and specific to each platform characteristics, and avoid redundancy. The mobile app is a great improvement as the current market is leaning towards mobile specific interactions. It makes it easier for customers to explore the world of Moncler through accessing it on their phones. Some suggestions for improvement may be including app exclusive content to increase download rates and strengthen their shopping experience through the app to seek more usage.
FACEBOOK With over 2 million likes, Facebook owns 64% of the total social media traffic that Moncler has. Moncler posts once everyday, and content ranges from magazine covers, to celebrities wearing Moncler, to advertisements, to new arrivals. The Moncler Facebook makes it easy for customers to interact with the brand through a messenger button on the top of the page, and a website button that directly takes viewers to the website.
WEIBO To cater to the Chinese market, Moncler has a Weibo that currently has around 23,000 fans. Similar to Facebook, Moncler uploads once everyday and the content is the same, only more focused on the Asian celebrities that are featured with Moncler.
YOUTUBE The platform has 6,677 subscribers, but 2,632,752 views since joining in 2011. The content is divided in four differents playlists: Moncler World currently has 29 videos. Playlist ntroduces viewers to special projects, artsits’ collaborations, and features news about the brand. Moncler Shows has 36 videos which feature the runway shows of Grenoble, Gamma Bleu, Gamma Rouge, and behind-the-scenes. Moncler Events has 10 videos which content include store openings, launch events, and parties that primarily rely on the brand collaborations. Moncler Passion for Sport, consists of four episodes that play homage to mountain biking, surfing, skijumping, and parkour. The brand has recently increased its frequency posting 2-3 videos monthly.
TWITTER Having over 1.26 million followers on Twitter, Moncler uses this social media application to communicate with their fans and customers every day.
Uploads include new product releases, store openings and events, and new advertising campaigns. Often times Twitter is used for customers to ask questions and enquire about service issues, which Twitter allows Moncler to respond right away.
GOOGLE + Currently has 99,231 followers and over 11, 638, 800 views. On average one post per day. This social media platform is different from the rest because Moncler uses it to educate their customers about their products. Posts talk about their latest technological developments and future products. Channel used to inform their viewers about what they are doing to help the environment and being transparent. The products are linked directly to their website.
PINTEREST One of the most popular social media platforms, with over 4,000 +followers. Channel gives a detailed and artistic experience to its followers, as well as an expression of their aesthetic. With around 50 boards and which with between 55-10 pins each, Moncler introduces an interactive way for its customers to view previous collections, behind the scenes, as well as product shots. As every season comes, a new board is created for each of their runway shows and includes videos of their presentation and a clear description of that specific board.
INSTAGRAM The brand’s Instagram has over 402,000 followers and continues to grow with a 8.6% bimonthly growth rate. Moncler currently posts one post for each day, of content ranging from celebrity endorsements to advertising campaigns, and to new product releases. Overall, the Instagram account is well curated, visually sound, and has a strong brand aesthetic.
MONCLER PHYSICAL STORE Moncler’s physical distribution strategy is through branded retail stores located in over 60 countries and partnerships with major department stores like Neiman Marcus and Nordstrom. The brand is very particular in choosing only the best locations for reaching its customers and spends time selectively choosing in which cities to build its stores. Once a location is chosen, Moncler utilizes visual merchandising localization as a strategy to better engage the local base of customers that provide the majority of sales. Moncler store layout features designs of marble and French chêne fumé wood paneling, which gives it the air of a luxe ski chalet. The walls and ceilings feature natural materials such as travertine and bright Eucalyptus creating a "high mountain" style characteristic of Moncler stores in general. MONCLER APP The Moncler app is practically the brand’s mobile-optimized site, which allows users to shop and consume content. Through this app, Moncler reaches its mobileinclined audience, allowing them to shop with ease of navigation, the option to view each product in detail, check out the latest arrivals and share new finds with friends. The app currently has between 1,000-5,000 Android installs, a 4.6 star rating (Android) and satisfactory customer commentary. WEBSITE Moncler.com has a total visit of 250,000 monthly with a total time spent of 02:50. Most traffic on the website comes from the United States, United Kingdom, and Turkey, respectively. 24% of the traffic directly search the website, where 62% find the website through searching the web. 30% of that traffic is mainly through paid sources. The website is clean and can be easily navigated, and is mostly used to shop apparel online.
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THE NEW STRATEGIC INITIATIVE Experiential Pop-Up Event - Moncler Partnership with Grey Goose
Moncler is a creative brand that is all about heritage, quality, uniqueness, timelessness, and sustainability. The brand makes its effort to make themselves one of the top brands in the luxury market, and they have successfully done so throughout the years. Now, Moncler moves forward in their adventure, seeking new ideas and innovation to elevate their brand even further. Our strategic initiative is to partner with Grey Goose and create a pop-up bar to raise brand awareness and engage with current and new customers in deep level which will drive traffic to the physical and online stores.The pop-up bar will be driven by the latest technology such as virtual reality, weather simulation, and point-of-sale installed on bar tops.