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Moncler, all set for a “Genius” year ahead

By Angela Gonzalez-Rodriguez

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Business |ANALYSIS

The future looks bright, “Genius” even, for Moncler. The Italian luxury outwear retailer “have decided to start a new exciting and challenging chapter for our business, which I strongly believe, will drive us to new heights with greater determination.”

The upscale fashion group foresees further growth in 2018, after posting a 15 percent rise in revenue last year and launching a new product strategy based on faster-paced collections. Much of this positive outlook responds to the group new strategic plan, “Genius”.

Moncler’s revamped strategy will see catwalks ditched in favour of monthly new product launches, eyeing a younger, digital-first generation of savvy – and millennial – shoppers.

“...We have decided to start a new exciting and challenging chapter for our business, which I strongly believe, will drive us to new heights with greater determination,” Chairman and Chief Executive Remo Ruffini said in a statement.

”Genius”, Moncler’s new strategy, takes the Chinese market by storm

Initial responses in China have seen some perplexed, but garnered support from more fashion fixated commentators, reports Chinese publication ‘Jing Daily’, calling out Vogue China’s editor-in-chief Angelica Zhang’s praise to the Italian brand’s bold move: “Collaborating with eight designers, the Moncler Genius project gave me lots of inspiration and stimulation. Awesome!”

Moncler staged its radical breakout with tradition at Milan Fashion Week by showing eight separate lines by eight different designers (including Craig Green, Pierpaolo Piccioli, Simone Rocha, and Hiroshi Fujiwara) instead of introducing a single Fall/Winter collection.

One of these collections will be rolled out each month, helping Moncler remain continuously relevant to younger, digital-first and spoilt for choice fashionistas.

Conquering the luxury market the millennial way

Ruffini actually feels pretty confident on the new strategic direction, which will bring Moncler (MONC.MI) ahead of the pack, being expected to outperform the luxury industry in 2018 by pursuing online sales and targeting younger customers.

“We must keep an open mind and constantly evolve, welcoming changes but keeping true to our DNA,” advanced the company’s CEO at Moncler’s capital markets day.

Revenue last year rose to 1.194 billion euros, just above a Thomson Reuters estimate of 1.183 billion euros. Sales were up 17 percent at constant exchange rates. The Italian outwear label has proposed to pay a dividend of 0.28 euros per share on 2017 results, that’s it 10 euro cents up from the 0.18 euros per share paid the previous year.

Moncler’s Chief Operating Officer (COO) Roberto Eggs said the shape and size of the company - founded as a traditional skiwear brand in 1952 but now a trendy fashion label - would allow it to keep growing at a faster pace than the industry.

Eggs further added that Moncler aims to double its retail online sales, now at 3 percent of revenues, to bring it closer to rest of the industry where e-commerce represents 9 percent of total revenue and is forecast to reach a quarter of all sales by 2025.

Meanwhile, as other Italian fashion retailers quoted on the Borsa de Milano, Moncler has been added to the analysts’ watchlist due to the high volatility affecting the Italian market on the back of the political campaign.

Photo:Moncler Genius, Moncler Official

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