Moncler S.p.A

Sector: Luxury Countries of operation: China, Italy, Japan, the US and over 70 other countries, and online through moncler.com Key product categories: Jackets, footwear and outerwear accessories Annual Metrics [caption id="attachment_145019" align="aligncenter" width="700"] Fiscal year ends on December 31[/caption]   Summary Founded in 1952 and headquartered in Milan, Italy, Moncler makes and sells luxury outerwear and skiwear, such as jackets, footwear, eyewear, bags and other clothing and accessories. It operates in over 75 countries through directly operated stores, shop-in-shop locations and online. In December 2020, the group acquired Stone Island, an Italian luxury brand for men that combines sportswear and streetwear, to grow its presence and expand its offerings. Company Analysis Coresight Research insight: Moncler has developed a unique position in the luxury market over the past several years and continues to carve out its place in a sector dominated by legacy luxury groups like LVMH and Kering. For most of the company’s history, consumers primarily knew Moncler for its luxury down jackets and outerwear. However, its Moncler Genius initiative, started in 2018 as an experiment in creative collaboration, has proven to be a successful strategy for innovation and category expansion. The initiative involves multiple renowned designers, including Simone Rocha and Craig Green, creating limited-edition collections that are released under the Moncler label. By using a rolling calendar release for each designer, the brand not only challenges the tradition of using a single, permanent creative director, but also brings consistent variety to its line. Its 2021 acquisition of Stone Island cuts down on competition and consolidates its position in the high-end sportswear segment, readying it for further growth as the economy continues to recover.

Tailwinds	Headwinds
New and aspirational shoppers looking to purchase luxury goods Growing segment of youthful consumers with rising incomes Demand for high-end streetwear and sportswear Recovery in travel	Economic uncertainty across global markets Competition from other luxury brands Supply-side disruptions and input cost inflation

  Strategy Moncler’s long-term strategy is underpinned by four pillars: 1. Become a leader in the “New Luxury” segment

• Develop a new, modern identity for luxury that is inclusive—traditionally, luxury has typically been exclusive—by drawing upon art, music, cultures and sports from around the world.

2. Build a global group to enhance the brands’ potential

• Continue to strengthen its direct-to-consumer segment while also expanding globally. During the company’s annual earnings call in February 2022, COO Roberto Eggs mentioned that there are several flagship store openings planned for 2022, including in Chengdu (China), Chicago (US), Dusseldorf (Germany), Madrid (Spain), Miami (US) and other cities.

3. Develop all distribution channels with an omnichannel approach

• Continue to blend digital experiences with physical stores and enhance its digital offerings across all channels. In 2021, the company internalized its online business to ensure full control of its digital infrastructure.
• Double its production capacity at its Romanian facility in 2022—which will include a high-end research and development center that will focus on developing new manufacturing techniques and product features.

4. Follow a sustainable growth path

• Create value for its stakeholder through five strategic priorities—climate action, circular economy, fair sourcing, enhancing diversity and giving back to local communities.
• Stop sourcing fur in 2022—Fall/Winter 2023 will be the last collection to include fur.

Revenue Breakdown (FY21) Company Developments

Date	Development
February 10, 2022	Unveils new Genius collection with Chinese designer DingYun Zhang.
January 25, 2022	Launches second Born to Protect sustainability collection and announces that it will stop using fur. It will stop sourcing fur starting this year and the last collection that will use fur will be the Fall/Winter 2023 collection.
December 22, 2021	Reports a malware attack to its information technology (IT) systems that led to a temporary outage of its IT services.

  Management Team

• Remo Ruffini—Chairman and CEO
• Roberto Eggs—Chief Marketing Officer, COO and ED
• Luciano Santel—Chief Corporate and Supply Officer, and ED
• Paola Durante—IR and Strategic Planning Director

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Source: Company reports/S&P Capital IQ