Moncler Can Thank China For Its Comeback

    Although Moncler posted strong Q1 results, with revenues rising 21 percent, CEO Remo Ruffini says there’s still much work to be done.
    Although Moncler posted strong Q1 results, with revenues rising 21 percent, CEO Remo Ruffini says there’s still much work to be done. Photo: Courtesy of Moncler
      Published   in Fashion

    Backed by its strong growth in Asia and with e-commerce, Moncler has begun what it calls a year “of rebirth and fresh energy.”

    On April 22, the luxury puffer jacket maker reported that its revenues rose 21 percent to 439 million (365.5 million euros) in the first quarter of 2021, just beating analyst expectations of 433 million (361 million euros). However, unlike competitors LVMH and Kering, which boasted rebounds beyond pre-pandemic levels over the past few days, Moncler fell a tad short, as its revenues were down 2 percent compared to Q1 of 2019.

    By region, the Milan-based house saw Asia sales soar 53 percent, largely thanks to Mainland China and Korea, while the Americas climbed 34 percent in revenues. Those jumps contrast with its home market of Italy, where sales tumbled 16 percent due to continued store closures and the absence of tourists.

    Although CEO Remo Ruffini acknowledged that the first three months were “very good,” he also stressed how much work the brand still had in front of it. “Our customers — wherever they are, and whether they meet us in a physical or digital space — expect an ever-changing, unique and exciting experience,” he stated in a press release.

    This focus on innovating retail experiences and resonating with consumers has been especially apparent in China. At the beginning of the year, Moncler tapped Chinese photographer Leslie Zhang to ring in the Year of the Ox while adding red hues, kung fu, traditional architecture, and other Chinese aesthetics to its ongoing Moncler Voices campaign. Beforehand, the fashion house launched a series of online and offline events in the market to maximize exposure for its Hiroshi Fujiwara collaboration, also employing a star-studded livestream and a food truck in Shanghai.

    And there are no signs that the brand will be slowing down. With its Stone Island acquisition completed as of March 31, Moncler is now off to tackle other projects in the pipeline. In addition to releasing an adventure-themed Genius collection for Spring/Summer 2021, the brand also plans to stage a Genius Show in Shanghai in September and open its first outpost in Ningbo.

    As the luxury sector finally recovers and competition ramps up, Moncler’s allergy to stagnancy will serve it well moving forward. “Our products caught [our customers] yesterday, but it is the relationship we strengthen today that will allow us to continue to engage with them tomorrow, around the world, and across every touchpoint,” Ruffini added.

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