Moncler sees strong China performance in H1 2024

What happened Moncler Group has posted impressive results for the first half of 2024, with China emerging as a key driver of its success. The luxury outerwear maker reported consolidated revenues of 1.2 billion euros ($1.35 billion), an 8.2% increase YoY, demonstrating resilience in a challenging global market. Asia, particularly mainland China, has become the cornerstone for the Italian luxury label’s growth strategy. The region contributed 513 million euros ($563.5 million) to the group’s revenue, up 12% YoY. Expansion was fueled by a resurgence in Chinese tourist spending and strong domestic consumption, despite economic uncertainties. Moncler’s retail expansion in the Greater China region has been aggressive and strategic. The company now operates 137 mono-brand boutiques across Asia, with recent high-profile openings in Jinan MixC and a revamped location at Macau’s Four Seasons. The brand’s innovative marketing approach has been crucial in maintaining its competitive edge in the Chinese market. Moncler’s strategy includes events and campaigns like the Moncler Genius event scheduled for October in Shanghai. Direct-to-consumer (DTC) channels have been a significant contributor to Moncler’s growth, with revenues rising 19% YoY to 875.7 million euros ($962.4 million). This aligns with the evolving shopping preferences of Chinese consumers who increasingly favor direct engagement with brands. However, the weak performance of the direct online channel across all regions indicates a need for digital strategy refinement. While DTC channels flourished, the wholesale channel experienced a 5% decline, reflecting Moncler’s ongoing efforts to upgrade its distribution network. This shift underscores the importance of balancing wholesale and DTC strategies for sustainable growth. The Jing Take Moncler’s H1 2024 results broadly align with those of leading luxury groups like LVMH and brands like Hermès, though there are some differences in growth and strategy execution. Meanwhile, Moncler’s 8.2% YoY revenue growth outpaced LVMH’s 2% in the first six months of the year, yet lagged Hermès, which defied expectations of a China slowdown and reported a robust 12% YoY increase at current exchange rates and 15.1% at constant rates. Moncler’s focus on mainland China as a key growth driver mirrors LVMH and Hermès, although Moncler should take a page from LVMH’s playbook and increase its focus on the rest of Asia – particularly Japan, which is seeing huge spending among Chinese tourists. Although its performance in Asia was mixed, LVMH experienced growth in Japan powered in no small part by Chinese consumers. Hermès reported strong growth in all regions, with Asia (excluding Japan) up by 9.9% and Japan by 22.4%. The question for the remainder of the year is whether revenue growth in Japan will maintain its current trajectory. The Jing Take reports on a piece of the leading news and presents our editorial team’s analysis of the key implications for the luxury industry. In the recurring column, we analyze everything from product drops and mergers to heated debate sprouting on Chinese social media.

Moncler sees strong China performance in H1 2024

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Published August 02, 2024

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Moncler sees strong China performance in H1 2024