MONCLER: THE DIVERSIFICATION – STANDARDIZATION STRATEGY FOR SPREADING THE SUSTAINABILITY IN THE GLOBE

16 Dicembre 2021
MONCLER: THE DIVERSIFICATION – STANDARDIZATION STRATEGY FOR SPREADING THE SUSTAINABILITY IN THE GLOBE

MONCLER: A SHORT STORYTELLING 

THE ORIGIN: The origins of the name lie in its very roots: Moncler is in fact an abbreviation of Monestier-de-Clermont, a mountain village near Grenoble. Here, entrepreneur René Ramillon and Andrè Vincent founded the company in 1952, which would go on to produce the renowned down jacket, creating garments conceived to protect workers who wore them over their overalls and that offered high resistance and protection against the harshest climates and that were put to the test in a variety of expeditions.

THE EXPEDITIONS: French mountaineer Lionel Terray first noticed Moncler products and foresaw their potential. The result was the specialist range ‘Moncler pour Lionel Terray’. In 1954, Moncler’s down jackets were chosen to equip the Italian expedition to K2 (8.611 meters) which culminated in the conquest of the world’s highest summit by Achille Compagnoni and Lino Lacedelli. In 1955, they equipped the expedition on the Makalù (8.470 meters) and later on, in 1964, in Alaska (6.190 meters).

THE OLYMPICS: To mark the Grenoble Winter Olympic Games, Moncler became the official supplier to the French downhill ski team.

CITY ICON: In the 80s, under the stylistic direction of Chantal Thomass, Moncler made its entrance into the city, becoming the iconic garment of a generation of youth.

THE ACQUISITION: In 2003, the brand was acquired by the Italian entrepreneur Remo Ruffini, current Chairman and CEO of Moncler Group, who began a strategy of global expansion in the luxury goods segment.

HAUTE COUTURE: In 2006 with MONCLER GAMME ROUGE and in 2009 with MONCLER GAMME BLEU, the Moncler universe was further enhanced with Haute Couture collection. The first designed first by Alessandra Facchinetti and then by Giambattista Valli; the second one by American designer Thom Browne. Both ended in 2017. In 2010, the men’s and women’s MONCLER GRENOBLE collection made its debut in New York that, reinterpreting the styles of the past, create skiing garments and après-ski wear with a contemporary and technical take.

THE LISTING: On 16 of December 2013, Moncler was floated on the Telematic Shares Market (MTA), managed by the Italian Stock Exchange of Milan, signaling Europe’s greatest success story in recent years.

MONCLER GENIUS: In 2018, Moncler launches the new project Moncler Genius – One House, Different Voices, an hub of eight minds that, while retaining their individuality, they reinterpret the essence of the Moncler brand.

STONE ISLAND JOINS MONCLER: In December, united by the “beyond fashion, beyond luxury” philosophy, Moncler acquired Stone Island and these two Italian brands initiated a strengthening path in the new luxury segment, a concept that embraces the search for experientiality, inclusivity, a sense of belonging to a community and the mixing of diverse meanings and worlds including those of art, culture, music and sport.

Today, the brand has reached a striking Brand Equity, mixing the French “Fashion and Mode style”by the original country with the Italian “Quality manufacturing” by the Place one. As a consequence, the company has obtained a huge reputation and worldwide consideration.

DIVERSIFICATION STRATEGY: A GLOBAL APPROACH

Genius, rigour, multiplicity, capability to innovate while remaining true to itself and urge to seek for the extraordinary in the “ordinary” have always been the creed of the Group. Moncler leverages change to grow stronger as it continues to explore both known and new avenues, seeking constant dialogue with an ever-broader client base, and has in its flexibility the capacity to pursue its goals in an ever-changing environment. And that’s exactly its continuous desire to evolve, also seeking for new challenges, the desire to dialogue with new consumers, the desire to change even when everything goes well, which led to the acquisition of Stone Island, a casual menswear brand, established in 1982, which has become a symbol of extreme research on fibres and textiles, through the continuous experimentation of dyes and treatments on the finished garment. With the entry of Stone Island in Moncler, a journey begins leading the Brand to reach its full potential, while maintaining its strong brand identity.  Moncler’s strategy is underpinned by five pillars:

1. STRENGHTEN, TOGETHER WITH STONE ISLAND, THE NEW VISION OF LUXURY: United by “beyond fashion, beyond luxury” philosophy, Moncler, will strengthen its ability to interpret the evolving cultural codes of the new generations offering them a new concept of luxury, far from the traditional stereotypes. A concept that embraces the search for experientiality, inclusivity, a sense of belonging to a community and the mixing of diverse meanings and worlds including those of art, culture, music and sport. The union will strengthen the competitiveness of the two Brands while fully respecting their identity and autonomy and accelerating the development process.

2. BUILD A GLOBAL BRAND ABLE TO CONTINUOUSLY EVOLVE WHILE KEEPING ITS UNIQUE POSITIONING: Under the guidance of Remo Ruffini, Moncler has followed a growth strategy inspired by two key principles: to become a global Brand with no filters with the market and to continuously evolve while remaining true to itself. With the acquisition of Stone Island, Moncler will share its knowledge and experience to fully capture the important growth potential in particular of the Americas and Asian markets, maintaining and strengthening the unique positioning of the Brand, which has its identification matrix in the culture of research and experimentation.

3. FOLLOW A SUSTAINABLE GROWTH PATH TO CREATE VALUE FOR ALL STAKEHOLDERS: Moncler has been progressively strengthening its commitment to long-term sustainable and responsible growth, fully integrated into the Group’s strategy to meet stakeholder expectations and create shared value. The new plan of the Group focused on five strategic pillars: climate change, circular economy, fair sourcing, enhancing diversity, and giving back to local communities.

4. SUPPORT THE DEVELOPMENT OF DISTRIBUTION CHANNELS WITH AN OMNICHANNEL APPROACH: Engaging directly with clients through every channel and touch point, involving them, understanding their expectations – even when unspoken – and create the human warmth that has always characterised the Brand in its physical and virtual stores, are the cornerstones of the relationship that Moncler strives to develop with its clients to never stop surprising them. Today Moncler is pursuing a strategy of integrated development of its distribution channels, both physical and digital. Stone Island is starting a journey that will lead the Brand to gain greater control over all markets, especially through the expansion of the DTC channel (direct to consumer).

5. STRENGTHEN THE DIGITAL CULTURE: Think, define and implement our strategy in a digital key is an increasingly fundamental goal for Moncler who believes in the importance of the contamination across divisions and in particular, we believe that digital is not only an important tool to generate revenues but, above all, is the way we are going to implement our present and future strategy. 

The following map clearly shows in which countries Moncler is already present (BLUE) and which ones could represent a new business opportunity (RED). This graph is consistent with the Retail Distribution, that is still unexploited potential from organic and expansion. With 219 directly operated stores (DOS) at the end of 2020, Moncler has been able to develop a global retail network and is today present is many of the most important luxury streets and department stores. The Company plans to open at least 10 new DOS p.a., to continue enlarging/relocating its existing stores and to focus on China to qualitative enhance Moncler presence.

On another hand, the Italian Brand has an important attention on the wholesale distribution, focusing on mono-brand stores (SiS) and on digital. The wholesale channel remains strategically fundamental for Moncler. Over the years the Group has introduced a highly selective distribution policy, gradually reducing the number of doors and tightly controlling client order quantities, so that the Brand is now only present in the leading luxury multi-brand shops and department stores around the world. At the end of 2020, the Group had 63 SiS. Moncler plans to further strengthen the quality of its network and to enhance the partnerships with selected e-tailers.

WHAT ARE THE RESULTS REACHED BY THIS STRATEGY? 

Moncler is a Manufacturer’s own company, positioned in the icon brand segment of the market; its high strength allows it to enter in the global market with the original brand name. The group have not implemented the diversification strategy just for a global diffusion but also for ensure a new segment awareness: “young people”. For this reason, the company decided to acquire “Stone Island”, a company well disseminated in the young people target. According to these statements, the diversification strategy is consistent not only with the country level, but even with a multi-target approach.  Summarizing all the concepts, over the years, Moncler has followed a growth strategy based on two key objectives: to become a global brand with a direct relationship with the consumer, and to strive for constant growth while maintaining a unique positioning that stays true to its DNA. This approach continues to inspire the Group, whose experience should help Stone Island in seeking its growth opportunities in the American and Asian markets and in the direct-to-consumer channel, while reinforcing the Brand unique positioning based on its defining philosophy of research and experimentation.

SUSTAINABILITY STANDARDIZATION: “BORN TO PROTECT”

Moncler decides for a standardized approach for its worldwide products. In fact, Remo Ruffini, who is the Brand CEO, implements a new common view for the product realization all over the globe. Moncler was Born to Protect. With the production of sleeping bags and its very first jackets, what started as protective warmth for Alpine workers has over the years crystallized into a fundamental purpose for the company. Protection is our bedrock. As Moncler moves forward, it has reinforced its purpose of protection extending it to the planet. Fabrics, zip and accessories in a new range of jackets made with ECONYL®, a regenerated nylon derived from ocean and land based waste, and producing 40% less CO₂ emissions than a traditional nylon jacket. These jackets are part of Moncler Born to Protect, our sustainability plan and promise to the future that build on our founding purpose of protection following five main drivers:

  • Act on climate change
  • Think Circular  
  • Be fair
  • Nurture Genius 
  • Give Back

Since 2019, Moncler has started introducing sustainable materials in its collections, such as BIO-based, carbon neutral down jacket made with plant-based fabrics whose emissions have been offset through REDD+ certified projects, a range of recycled garments within the Moncler Grenoble collection, and getting to the launch, in January 2021, of a selection of “Born To Protect” jackets made entirely of recycled materials within the Moncler Man, Woman, and Enfant collections. The jackets of the new line are available in a single-color variant, black, which means that respect for the environment is a principle that involves everyone, and for this reason the color of the outerwear must be suitable for any occasion.

The idea to commercialize the same sustainable products all over the word reached a huge success. In fact, the company Identity (luxury, high quality, sustainability) is coherent with the Brand Image, given by the whole stakeholders. As a consequence, the majority of customers is proud when they wear Moncler products, because the company is in line with these new cultural values shown by the entire society.

HOW THE STANDARDIZATION STRATEGY IS POSSIBLE?  THE GENIUS STRATEGY

In a world where consumers crave newness at the speed of Instagram, Moncler is set to unveil the fruits of a new strategy designed to keep the billion-dollar Italian luxury brand, best known for its ski jackets, ever-present in hearts, minds and social media feeds. As part of the approach — dubbed Moncler Genius — the company is replacing its seasonal partnerships with Thom Browne and Giambattista Valli on its Gamme Bleu and Gamme Rouge runway lines with monthly collections and content produced in collaboration with guest designers including Valentino’s Pierpaolo Piccioli, Kei Ninomiya of Noir Kei Ninomiya, Craig Green, Simone Rocha, Hiroshi Fujiwara of Fragment, Francesco Ragazzi of Palm Angels, stylist Karl Templer and in-house Moncler Grenoble designer Sandro Mandrino. The Group has implemented a multi-cultural board of designer, who are able to mix different habits, values, working way, tradintions in order to obtain an unique monthly collection suitable for the large part of the own market. The business model is become making it more cross-functional and increasing the coordination among departments, our agility and the energy level inside the company. In fact, the fashion collaboration and the Drop Culture are two main factors in our social media society. The strategy reflects a shifting world. “You cannot talk to your customer every six months, you need to talk every day,” explained Remo Ruffini, president and chief executive of Moncler. “Before, the world was quite static and it was enough to make one show in February, one show in September.” The initiative is designed to appeal to Millennials and members of Generation Z. “I hope the Genius strategy will get young kids, a young generation talking about Moncler around the world,” added Ruffini. But newness is critical to attracting older, established luxury consumers as well. Moncler is one of several brands, including Adidas, to deliver a steady stream of newness with a more curatorial, “open source” approach to collaboration. But operationalising the strategy isn’t easy. Moncler has prepared for the launch of Genius for nearly two years. “Speed and smarts and flexibility is the key to the success of this project,” said Ruffini. “We cannot divide media, sales and the customer… It’s one package. Every month we have to deliver this one package. Every month we have to make everything new.” With Genius, Moncler speaks to every generation and to different consumers in an inclusive way and shows the multiple creative facets of our brand with a different angle every month. Monthly collaborations are very powerful because they come together with real editorial plans that are able to generate a compelling storytelling. According to this strategy, all products are clearly “Instagrammable”. Moreover, the customer experience is suitable for the social media and ready to be shared all over the world with social post and tags.

AN ADAPTATION ATTEMPT: LATIN AMERICA AND SCANDINAVIA RETAIL INSTALLATIONS

Moncler has been puffing up in the past year, with new standalone stores in traditionally chilly locations such as Toronto, Moscow and Stockholm. After a successful venture in São Paulo, the Italian apparel company recently opened a second shop in Latin America, in Mexico City. But “How can the same execution for the same collection be adapted for two very disparate markets?” As the brand has a global retail design strategy, many in-store experiences are replicated across locations. For example, it recently commissioned a lighting installation from Paris-based practice Bardula for the Mexico City and Stockholm shops. The result is a sculptural ribcage that holds a piece of the brand’s celebrated Genius collection inside. ‘They asked us for an installation that could be a symbiosis between art and fashion, a way to present their new collections inside an art piece,’ explained the Belgian half of the duo. In fact, for these counties art and fashion are the main cultural values. Winters are relatively mild in Mexico City, with an average temperature of 10 degrees – but many consumers also buy down jackets for overseas travel. To enter the store in Artz Pedregal, a new shopping complex in the posh colonia of El Pedregal, visitors first walk under the sun along green horseshoe-shaped paths dotted with Ai Weiwei sculptures, past the windows of tenants like Gucci and Louis Vuitton. 

Winters are relatively mild in Mexico City, with an average temperature of 10 degrees – but many consumers also buy down jackets for overseas travel. To enter the store in Artz Pedregal, a new shopping complex in the posh colonia of El Pedregal, visitors first walk under the sun along green horseshoe-shaped paths dotted with Ai Weiwei sculptures, past the windows of tenants like Gucci and Louis Vuitton. In Stockholm, the store is located on the Birger Jarlsgatan shopping street in flush Östermalm, surrounded by – you guessed it – the likes of Gucci and Louis Vuitton. The scenarios might look the same in theory, but in practice a mirrey does not shop in the same way as a latte papa. How can the same execution for the same collection be adapted for two very disparate markets? By being literally and figuratively light: Bardula’s installation features two separate mechanisms that provide some much needed localflexibility. The first is an elegantly technical aluminium contraption that allows store employees to replace the Genius jackets on display according to changing tastes. ‘This allows Moncler to choose the items that are most adapted to the local consumer culture,’ said the artist. The second is the use of light itself: in sun-deprived Stockholm, ‘the brand wanted a very strong lighting statement to attract people from the street in the boutique’ while in the warm environment of Artz Pedregal, ‘we used a more subtle lighting scenario to invite people to discover the installation progressively.’This installation solution establishes itself between the extremes of hyper-localisation and single-brand-aesthetic (think Tom Ford) that many global companies choose for their retail deployments. Moncler’s middle-ground approach is an interesting addition to the spectrum: it gives customers the experience of the obstinate luxury-brand vision while still acknowledging the different ways in which different markets respond to the same products. 

SOCIAL MEDIA ADAPTATION

Moncler has a differentiated approach in the social media usage. In fact, the company uses different social media for different countries in which it is present. It is connected in the globe with Instagram, Facebook, Tik Tok, Twitter, LinkedIn. Nevertheless, it makes some adaptations; in particular, for country as Korea, China and Japan, the group decides to use the national social media in addition to the most popular one.

THE MATRIX:

The Brand is located in the south-east square of the RISK-COST matrix. This is the ideal position for Moncler because it is able to face a low risk-low cost situation. With this decision, the Group accept the global competition.

THE 4Ps  

PRICE: Moncler is an Icon Brand, so in their prices a customer will meet just the 0 or 5 number in the final position. The price doesn’t include, in the final position, neither the number 9 nor the comma because they are both factors that belong to a convenience good. Jacket prices range between $1,000-$2,000; beanies alone can retail for at least $465. At this price point, we’re talking about designer branding. At a certain level, cost is no longer associated with functionality, but with brand reputation and fashion heritage. Our best insight is that Moncler should be judged somewhat like a Range Rover–a luxury product with a high price point, combined with rugged functionality and quality manufacturing. Besides its designer branding, Moncler was, at its heart, originally designed for harsh conditions and expeditions. Eventually, customers will never see sales promotion neither online nor offline because it is in contrast with the luxury positioning of their products. So, Price is the first communication element of luxury, quality and reflects the status symbol allowed by owning and wearing a Moncler Product.

PRODUCT: Moncler’s success is based on a unique brand strategy that pursue the development of innovative products that are strongly “anchored” to the DNA of the Brand in which heritage, uniqueness, quality, creativity and innovation coexist. The Moncler Man and Moncler Woman collections are at the core of the Brand, responding to the needs of different consumers and to multiple uses. The “Archive” consists of products inspired by Brand’s first collections that follow two different developments: one inspired by the development of models that reflect the iconic styles, the other with a more creative approach that has the goal of acquiring a younger and more trend-driven clientele. The “Sport Chic/Edit” line is intended at a more sophisticated client, less concerned with trends. The “Matt Black” line is inspired by a cosmopolitan consumer looking for a more contemporary style. There are also the collections for boys and girls, “Moncler Enfant“, set for young consumers, from 0 to 14 years. Moncler Genius collections take on a strategic relevance. They bring together different interpretations and visions of the Brand under the same “roof” that continue to generate new creative energy, while always remaining true to the Brand’s uniqueness. The Moncler Man, Moncler Woman and Moncler Genius collections are completed by Moncler Grenoble, which has become a technology and style innovation lab for the sporty consumer with an interest in performance, design and innovation. The Moncler Grenoble collections are identified in products related mainly to winter sports with functions of use ranging from skiing and snowboarding to other sports such as trekking and hiking. In particular, the ski/snowboard collections are split into High Performance, products guaranteeing maximum performance, Performance & Style, for the sporty consumer who also cares about design and Après-Ski for a complementary moment of use compared to the first two collections.
The Moncler collections are rounded off with footwear and leather goods (bags, backpacks and accessories) lines, a sunglasses and eyeglasses line (Moncler Lunettes) and a fragrance that will be launched by 2021.
Moncler’s team of fashion designers works under the supervision of Remo Ruffini, who sets design guidelines. The Moncler Style Department is assisted by the Merchandising and Product Development teams, which help create the collections and “transform” the designers’ creative ideas into the final product. Moncler’s products are designed, manufactured and distributed according to a business model featuring direct control of all phases where the greatest value is added. Moncler directly manages the creative phase, the purchase of raw materials, as well as the development of prototypes, while the “cut-make-trim” phase of the production stage is partly managed internally and partly assigned to third party manufacturers (façon manufacturers). The purchase of the raw materials represents one of the principal areas of the value chain. All raw materials must comply with the highest qualitative standards in the industry, be innovative and able to offer advanced functional and aesthetic features. Textiles and garment accessories (buttons, zips, etc.) are purchased mainly in Italy and Japan. The “cut-make-trim” phase is conducted both by third party manufacturers (façon manufacturers) and in the Moncler manufacturing plant, established in 2016 in Romania, that currently employs more than 1,100 people. The third-party suppliers (façon manufacturers) working for Moncler are mainly located in Eastern European countries, which are currently able to ensure quality standards that are among the highest in the world for the production of down jackets. Moncler supervises these suppliers directly by conducting audits designed to check aspects regarding product quality, brand protection and compliance with current laws, Moncler Code of Ethics and Supplier Code of Conduct. The products are based on the following features and values:

  • Extra Life
  • Take Me Back
  • Life Cycle Assessment
  • Guidelines on sustainable materials
  • Production Scrap Management  

The emotional component of the product offering is the nature an ever-changing Company, pushing towards reinvention and continuous development. Over time, its values have been taken on new meanings while always remaining true to themselves, the spread of the sustainability concept with the realization of the shared value. According to these reflections, Moncler “Born to Protect”, a selection of jackets made entirely by sustainable materials for men, women and children, the outcome of the constant search for innovative solutions with low environmental impact, is based on: circular economy, climate action, fair sourcing.

Design is a priority for the Group: Moncler fits tend to be slimmer, sharper, and more stylized. The brand’s fashion reputation is quite well-deserved, as they are always pushing boundaries and blending designer fashion with high quality warmth technology. Furthermore, Moncler has recently released a wide array of patterns and finishes that allow you to differentiate yourself and stay on top of the current trend of bold statement pieces.

PROMOTION: For the group, the Brand is the most important element in communication. In fact, managers aim to increase the “top of mind” scores in customer’s brain.  Moncler Group’s multi-channel approach seeks a direct, interactive, and genuine relationship with its clients in every moment and place of contact and pursuing such an objective requires the support of a consistent and integrated multichannel communication strategy. At the core of the Group’s distribution strategy is a vision of integrated growth through all platforms, online and offline, creating a fluid, open dimension where new ways of interacting with the consumer can be constantly explored. In this respect, Stone Island is embarking on a path that will give it greater control of its international markets, including and especially through the expansion of direct-to-consumer channels. Developing and implementing its strategy digitally is an increasingly important goal for a Group that believes in a “Digital First” approach. Everything from the conceptualization of collections to product development and event planning must be shaped and defined thinking of digital platforms as the first point of contact, before extending to other channels. “Our purpose inspires us to keep changing, whilst always retaining the essence that makes us unique. It’s our reason to be: to embrace the extraordinary and discover the genius within.” Remo Ruffini, Moncler Chairman and CEO.
Since the launch of Moncler Genius, the world of marketing in Moncler has been revolutionized from bi-annual collections to monthly collections by visionary designers transmitted through dedicated editorial plans. To rethink a well-established standard for the sector has demanded change at every level to obtain a multi-channel communication tailored to each collection but remaining consistent with the pillars of the Brand. Each collection is amplified by live events, either real life and digital. The result is the creation of a new community of Generation Z and Millennial customers who aspire to the alliance of innovation and heritage that Moncler uniquely offers. The communication message has a strong worldwide consistency; as a consequence the company has realized a strict integration of the online and offline promotion able to spread the same core values and benefits.

Trust and transparency are the cornerstones of the most stable and lasting relationships. For this reason, Moncler has always conducted every marketing and communication initiative responsibly on all channels, paying close attention to how, what and to whom it communicates.
It is very important for Moncler’s communication to be consistent, responsible and transparent. All images and messages delivered through any communication channel, whether online or offline, are carefully vetted to ensure they accurately convey Company values, respect human dignity, are non-discriminatory, and do not depict violent behaviour or dangerous conduct. Even greater attention is given to marketing communications related to children’s collections, which must guarantee absolute and constant respect for the fundamental principles underlying the protection of minors. As part of the Group’s commitment to enforce responsible communication with clients, great importance is also placed on product labelling, which must deliver clear, transparent and accurate information, providing accurate information on the composition of all materials and components, washing and care instructions, and country of manufacture. All information is translated into ten languages. As regards down, a label with the indication “DIST-certified down” has been inserted inside all outerwear, guaranteeing that the down contained in the garment is certified according to the principles set out in the Moncler Technical Protocol called DIST (Down Integrity System & Traceability), which regulates farming methods and respect for animal welfare, traceability and the technical quality of the down. Digital channels have always been central to Moncler’s growth strategy and continue to strengthen the Brand at a global level. In 2020 the Company further accelerated its digital transformation by defining a new corporate organization and announcing the direct management of its e-commerce, in line with an increasingly integrated digital vision aimed at personalizing experience and strengthening the relationship with the client across all the Brand’s touchpoints. This digital transformation is a turning point in the way Moncler interacts with its community through a new platform concept, in which the experience will be at the center of an even more personalized client journey. The goal is for every Moncler project, from collection definition to product development and event planning, to be digital native, to be designed with digital platforms as the first point of contact with clients to then spread across all other channels. This new approach requires rapid organizational, cultural and technological transformations and opens up a future full of creativity, experimentation and contents’ contamination, and interaction channels. Digital Hub, a department that drives Moncler’s digital transformation and acceleration and that spreads the digital culture, was established in 2019. E-commerce, big data, consumer insights, interactive and personalized omnichannel experiences, innovative online media, and special projects that improve the shopping experience and that exceed client expectations are the basic elements of the team. It is organized around five strategic pillars:

  • D-Commerce aims to define unique, innovative solutions in online business management. In addition to the management of buying and merchandising, it deals with the roll out of new markets.
  • D-Marketing aims to refine reach and to increase client engagement and conversion. In 2020, several projects were developed to boost social media impact, in-store traffic, and media campaigns performance. The TikTok campaign is a notable example. In addition, special collaborations and partnerships have been set up with e-tailers at global level.
  • D-Intelligence identifies strategic growth levers through the analysis and management of qualitative and quantitative data to maximize knowledge about omnichannel clients and predict demand for new trends and products, therefore improving the client experience. In 2020 Moncler further developed the Big Data project, launched in 2019 in collaboration with Google, promoting the transition from a big data approach to a more focused data management strategy (smart data) thanks to qualitative analyses that offer a unique and comprehensive view of the client that support the Company’s decision-making processes in real time.
  • Consumer Engagement aims to improve the connection with clients and simplify moments and touchpoints, to make the digital experience ever more personalized and seamless.
  • D-Operations aims to promote the development of business value and the spread of digital culture within Moncler.

ENGAGING the GENERATION Z is another important goal for the Group. In December 2020, Moncler launched the TikTok challenge #Monclerbubbleup to open an authentic dialogue with Gen Z and enhance their creativity. The Company asked users to take any idea associated with the Brand, reinterpret the style, and complete the look with a Moncler jacket. The challenge, implemented with the invaluable help of Client Advisors, who personally invited clients to participate and join the Brand’s social media universe, was a huge success reaching more than two billion views worldwide. In addition, the Z generation engage is a clear evidence of how a Direct Marketing approach is crucial for communication success. The Significant energies and investments have been dedicated to the development of the digital area: from online advertising to social networks.

INTARGET PROGRAMMATIC APPROACH: Moncler, with the support of Intarget: has revised its advertising communication by shifting the budget allocated to traditional offline media towards programmatic planning. The new marketing strategies of the textile company are based on omnichannel, in order to adapt to the trend of consumers to increasingly integrate online search with purchase through physical channels. Thanks to the integration of Google Analytics 360 and DoubleClick tools, Intarget has implemented programmatic activities able to support the seasonality revolution introduced for 2018 by Remo Ruffini, CEO and creative director of Moncler, with Genius Building: new collections available every month both in stores and online, to which to direct the customer. For this reason, banners with drive-to-store technology were used, which allowed the customer who clicked on the ad to view the path to reach the nearest store where to buy the product. In light of the results obtained (sales increased by 72% in 2017 compared to the previous year and +35% in return on advertising spend). This strategy is consistent with an evolutive version of the ROPO strategy.

PLACE: Engaging directly with clients through every channel and touch point, involving them, understanding their expectations – even when unspoken – and create the human warmth that has always characterized the Brand in its physical and virtual stores, are the cornerstones of the relationship that Moncler strives to develop with its clients to never stop surprising them.  

Today Moncler is pursuing a strategy of integrated development of its distribution channels, both physical and digital. Stone Island is starting a journey that will lead the Brand to gain greater control over all markets, especially through the expansion of the DTC channel (direct to consumer). Moncler is present in all major markets both through the retail channel, consisting of directly operated stores (DOS*) and the online store, and through the wholesale channel, represented by multi-brand doors, shop-in-shops in department stores and luxury online multi-brand retailers (e-tailers).  

Moncler’s strategy is aimed at the control of the distribution channel, not only retail but also wholesale and digital. Moncler is present in all major markets both through the retail channel, consisting of directly operated mono-brand stores, concessions in luxury department stores or in selected online multi-brand stores (e-concession) and its e-commerce moncler.com. It is also present in the wholesale channel, represented by multi-brand doors, shop-in-shops in luxury department stores, airport locations and selected online luxury multi-brand retailers (e-tailers).
In the past few years Moncler has accelerated on digital transformation and, in line with an increasingly integrated vision between physical and online, has decided to internalize its online website (.com).

As part of its commitment to ensuring animal welfare and a complete traceability of the down, Moncler requests and ensures that all its down suppliers comply with strict standards of the Down Integrity System & Traceability (DIST) Protocol. The DIST Protocol sets out standards for farming and animal welfare, traceability and the technical quality of down. From 2015, Moncler only purchases down that is DIST-certified. The Protocol assesses animal welfare in an innovative way. Alongside a traditional approach that focuses on the farming environment, the DIST, following the latest European Union guidelines, also evaluates animal welfare through careful observation of “Animal-Based Measures” (ABM).
Key requirements that must be met at all levels of the supply chain include:
• down must be derived exclusively from farmed geese and as a by-product of the food chain;
• no live-plucking or force-feeding of animals is permitted.
As another important step towards a more circular economy, Moncler will start recycling DIST-certified down through an innovative mechanical process that requires 70% less water compared to traditional down recycling processes.

The off-line stores are located in all main international metropolis, and are present in the prime locations, namely, the most popular place, boroughs, streets inside high-income areas for each city In fact, there is a tactical positioning strategy for the physical touch points.

THE WORLD TREND ON THE 5th P: THE PACKAGING: In line with responsible business management and the goals of the Strategic Sustainability Plan Moncler Born to Protect, the Company is also committed to reduce the materials used in its packaging. Paper and cardboard used for office purposes and packaging are the subject of improvement projects focusing on origin certification, percentage of recycled content, and, where possible, usage limitations and waste sorting for recycling. As regards packaging, boxes used for shipping are made almost entirely of paper and cardboard from responsible sources, while all shopping bags are made of paper that is 100% from responsible sources and 40% made from recycled material. Moreover, the impact of plastic on the environment has become a very important issue for our planet and Moncler feels the need to contribute through concrete actions, even though plastic makes up just 16% of its packaging. On one hand, the Company is reducing the use of plastic in packaging when it is not necessary or limiting its weight, on the other, it is researching alternative and innovative materials such as bioplastics (derived from plant and non-fossil sources), compostable, biodegradable and recycled plastics. For this reason, annually R&D resources are allocated to identify sustainable packaging and low-impact solutions. Furthermore, aware of the importance of taking action to reduce environmental impact from the eco-design phase, Moncler undertakes to create mono-material or easily disassembled packaging to facilitate recycling when possible and to design solutions that can be reused. All shopping bags and e-commerce packaging are made with sustainable and recyclable materials. In 2020, in collaboration with the Politecnico of Milan, Moncler conducted a research project to identify, through a Life Cycle Assessment analysis, the best alternative to single-use conventional plastic in terms of environmental impact and technical performance. Based on the outcome of the study, which indicated recycled plastic as the best alternative, the Company began the replacement process that led to reach 60% of the total plastic recycled by the end of the year. Moncler has also reduced by 21% the amount of plastic used in packaging, compared to 2019.In 2020 the Group set up a manual with guidelines for choosing materials of lower environmental impact to be used in packaging. Hangers, which have been made of recycled plastic for years, have been redesigned with a hook that is easily unscrewed to ensure an appropriate recycling process.

Managers know that also the packaging play a key role within the communication strategy, so they are inserting all the company’s corporate values in this tactical tool.

SHORT CONCLUSION   

All the financial, sustainable, economic, social, environmental, human efforts undertaken by the company for the marketing mix, are allowing it to reach an unique positioning in the global and local competition. Afterwards, Moncler has reached a striking linking between luxury, quality, and sustainability. This is the key to its success.

Autori: Michele Tamburrini, Amirul Alam Mazed, Monisha Balu, Paras Rustamani  e Niyozov Dilshodjon 

Alessandra Bucci

Alessandra Bucci – Partner Join Group, Board member, Marketing adjunct Professor

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