Moncler Has Outlined The Growth Trajectory Of A New Generation Of Luxury Brands.

From a "outdated" minority professional

The brand is pformed into an internationally renowned luxury brand with annual sales breaking 1 billion euros, from the French brand of Italy.

A new generation of luxury brands that many people are dreaming of have been developed.

Moncler, founded in 1952 by French entrepreneur Ren e Ramillon, is based on the shorthand of Monestier-de-Clermont, an alpine Piedmont town.

He has provided the uniform for the Olympic skiing team of France.

In 2003, Moncler, which was on the verge of bankruptcy, was bought by Remo Ruffini, a Italy entrepreneur. Currently, he is the chairman and CEO of the company's board.

Born in Remo Ruffini, Como, north of Italy, because of the cold weather in her hometown, she has buried a complex of Moncler ski wear since childhood.

In the 70s of last century, Moncler had become a local cultural phenomenon. Every teenager dreamed of having such a ski suit. At the age of 14, Remo Ruffini asked her mother to buy him the first Moncler.

In the early years, Remo Ruffini worked in the United States to serve his father's textile company. He returned to Italy in the 80s of last century and founded the clothing brand New England.

In 2000, he sold his brand and began to serve as a creative consultant for Moncler and Frette's two brand holding companies.

According to the world clothing and shoe net, in 2003, Remo Ruffini decided to buy Moncler, which is "down and down", hoping to bring it back to its peak.

At that time, the brand production base had moved to Madagascar, and the quality of its products was dropping rapidly.

Before and after the acquisition, the annual sales volume of Moncler in 2003 was 6200 million, and by 2010, it had increased to 368 million US dollars.

Ruffini not only saved Moncler, but also made it an international mainstream luxury brand with more than 200 stores all over the world. At the same time, it gave the European brand a sense of the United States and its business philosophy.

With regard to the blending of Italy and American culture in the Moncler brand, Remo Ruffini's view is: "the most important thing is not to forget your" roots ", but at the same time always look at the future and embrace the new culture, so that you can get creativity and motivation.

Recently, Moncler was awarded the WWD Honor for Best-Performing Company, Large Cap, selected by the American fashion business media.

In an exclusive interview with reporters, Remo Ruffini briefly introduced several important watershed development experiences of the company since he took the helm of Moncler in 2003.

The first few years of Remo Ruffini's acquisition of Moncler are called "the process of laying the foundation for the brand".

At this stage, he paid much attention to the upgrading of the overall image of the product and company, and moved the production center back to the Italy native area, to restructure the brand from all aspects.

"My goal was to move Moncler out of the sportswear store and enter a completely different channel," he said.

What's next is to change the mindset of consumers. Remo Ruffini said that this is a huge leap from wholesale and domestic business to international retail market.

In 2007, Moncler opened its first physical store. This is a key step, which means a brand new mechanism.

Successful listing is the beginning of Moncler's massive expansion of the international market and its global popularity.

(see the related report: Moncler redundant brands, light listing) Remo Ruffini Ruffini individuals play a crucial role in the process of Moncler listing and IPO planning.

He believes that the investment cycle of private equity funds will only be withdrawn in 3~5 years. If Moncler wants to obtain sustained financial support, it must go on the road of listing.

Of course, the timing of the listing should not be haste to meet expectations of shareholders.

After the failure to hit the market in 2011, Moncler was successfully listed in Milan at the end of 2013. Due to the unprecedented enthusiasm of the market, the initial public offering (IPO) subscription volume eventually reached 31 times of the issue volume, which was the largest luxury item in the European capital market (more than Ferragamo 344 million euro).

Since then, Moncler shares have been hovering over a long period of time. Since this year, the stock price has risen to a record high with its performance showing stronger momentum than most luxury brands in the industry, and its current market value is 6 billion 300 million euros.

Remo Ruffini said that the market provided a broader stage for Moncler.

This year is the 10th anniversary of his acquiring company. After listing, Moncler is completely different from that time. It has become a luxury company that can really match the industry giant.

In the first half of this year, Moncler sales increased 18% to 407 million 600 thousand euros compared with the same period last year, and net profit increased 25% to 41 million 800 thousand euros compared with the same period last year, setting a record of double-digit sales growth in the 14 quarter since 2013.

(see related reports: Moncler released 2017 first half earnings: sales continued to achieve two digit growth in the 14 quarter)

In the third stage, the alarming growth rate after Moncler has attracted more and more investors.

Remo Ruffini said that in the course of frequent equity changes in recent years, Mittel, The Carlyle Group (Carlyle Group), Eurazeo and later institutional investors, Singapore's sovereign fund, Temasek (Temasek) and Swiss tourism retail companies Dufry have reached a high degree of consistency with him in the development strategy.

At present, he still indirectly owns Moncler 20% stake.

As regards the listing of Moncler shares, the details are as follows:

Moncler subscription of new shares was crazy

Moncler major shareholder Eurazeo meets high shipment

Moncler will usher in the two new institutional investors, the current CEO partial reduction of cash.

Moncler major shareholder Eurazeo sold another 6% stake, earning a net profit of 190 million euros.

Remo Ruffini's keen fashion business insight led him to discover changes in the tastes and needs of high-end consumers in the early years: they preferred to spend 1000 dollars on a light down jacket instead of a heavy traditional coat, because the lightweight characteristics of the former are suitable for all kinds of business and ski outdoor sports needs.

{page_break}

Under the guidance of this idea, Remo Ruffini began with the inspiration of the feather sleeping bag for the reform of the high-end lightweight feather jacket. The jacket made of light fiber production technology is more complex, fashionable, more scientific and technological, and the profit is even higher. Even the down jacket is suitable for summer (for travelers to wear when the temperature drops suddenly).

He said, "although the demand for comfort is now beyond the demand for elegant appearance, you can never walk into an investment bank wearing colorful traditional ski suits."

Moncler not only invites famous designers Giambattista Valli and Thom Browne to work on the brand's women's wear accessory line and men's accessory line series respectively, but also collaborate with many famous international designers, such as Nicolas Ghesqui re, Junya Watanabe (Watanabe A), Chitose Watanabe, Thom, Motoma Masaaki, and so on.

In 2005, Moncler launched the first cooperation series with the Japanese design master Dubian alcohol. Remo Ruffini proudly said: "no one was doing such cooperation at that time, and Moncler was the first one."

At the same time, Moncler, which originally focused on making jackets, began to diversify its knitting, shoes, handbags, accessories and other categories, and strive to compete with other high-end brands.

This is breaking the display of traditional luxury stores (Remo Ruffini's Description: usually placed in front, hanging behind clothing) and a prominent feature of the product.

Remo Ruffini is even striving to make a difference in the design of fashion show.

In 2016, in the 2017 spring and summer show in Milan, two male models dressed in Moncler jacket were dressed as bears. They walked into the audience's view from the jungle. In 2011, Moncler invited 180 skaters to dance in New York's Central Park.

Remo Ruffini introduces that his biggest interest now is to apply digital technology to daily work to understand consumer behavior.

Remo Ruffini believes that luxury electronics business will account for far more than 20% of the industry's forecast.

He believes that luxury executives should be the first customer communication, exaggerating that it is best to "get to know every customer."

As a loyal fan of Moncler, Remo Ruffini has fully recognized the consumers of the brand.

He said: "in the past five years, the mentality of ski enthusiasts has changed dramatically.

People used to skiing in professional ski suits, and now they wear anything. They no longer want to go skiing in colorful jackets.

Wool has become the new favorite of skiers, so we have developed 100% of the waterproof wool ski suit.

Moncler is now taking the form of full direct operation. Several years ago, all distributors, distributors and agencies were phased out, and strong brand sentiment was pmitted through direct dialogue with consumers.

Looking back at the rapid growth of Moncler in recent years, Remo Ruffini said humbly that he never thought that brands could develop so fast today.

In addition to growth, he has always placed equal importance on product quality and customer relationship handling.

When it comes to the "storytelling" method often mentioned in the current brand marketing strategy, Remo Ruffini insists that he has been talking about the development history of Moncler, not just "telling stories".

In the marketing process, stick to brand pparency and listen to shareholders' suggestions, but will always follow the company's own clear growth strategy.

Remo Ruffini's expectation for the long-term development of Moncler is to create a strong, unique, stable growth and no compromise company.

More interesting reports, please pay attention to the world clothing shoes and hats net.