Moncler China's Market Growth Led The Global Prudent Strategy To Help It?

Recently, Italy's luxury brand alliance (Moncler) announced its 2019 first half financial report. During the reporting period, revenue grew by 16% over the same period. The growth rate of the Chinese market has led the world, and has become the largest market of the brand. It is worth noting that since 2009, the league has been cautious in its development since it entered the Chinese market.

The announcement shows that as of June 30th this year, the European Union would be able to gain revenue of 570 million 200 thousand euros, an increase of 16% over the same period (13% growth rate at constant exchange rate), adjusted interest rate depreciation and amortization profit (EBITDA) of 143 million 600 thousand euros, an increase of 16% over the previous year, higher than the previous 139 million euro period.

According to the regional perspective, Italy's revenue increased by 8% over the same period last year, reaching 68 million 400 thousand euros, accounting for 12% of total revenue. It is noteworthy that Asia's largest growth rate, the first half of this year's revenue was 249 million euros, an increase of 18% over the same period, accounting for 43.7% of total revenue. Robert Eggs, chief executive officer of the alliance, said that China's market demand is relatively strong, and its growth speed has led the world. Meanwhile, Robert Eggs stressed that the second half of the year, especially from the end of September to the end of the year, will be a critical moment for brand sales.

From the point of view of the channel, the retailer's retail distribution channel revenue increased by 16% compared to the same period last year, reaching 437 million 100 thousand euros, and wholesale channel revenue grew by 14% compared to the same period last year, reaching 133 million 200 thousand euros. This is mainly due to the strong performance of newly opened stores and airport channels. As of the end of June, the alliance could operate 196 independent direct stores, with a net increase of three stores in the first half. It can add four stores in the Asian region, while Italy and EMEA (Europe, Middle East, Africa three regions) have closed one store, and wholesale channels have increased by five single brand stores.

In fact, the league's performance in the Chinese market has been increasing in recent years. Last year's annual report shows that China's market performance has surpassed that of Japan, leading the Asian market. For this reason, the league can attach great importance to the development of the Chinese market. In the past year, the alliance has been able to launch a series of products on China's official website. In September, it opened a 18 day flash store in Tmall, offering six designers cooperation Series in the "Moncler Genius" project. In addition, the alliance can also pay close attention to the communication between WeChat and consumers, aiming at linking official online stores with WeChat to create a unique and innovative digital service platform in China.

In order to cater to the Chinese market, in January this year, the league could launch a special limited series. It echoed the traditional Chinese festival atmosphere and gave the oriental classical temperament to the classic design of the brand. Remo Ruffini, chairman and chief executive officer of the alliance, said that the company can set up Tmall flash shop and launch a series of Oriental design styles, which will help to refresh Chinese consumers' understanding of brands.

It is noteworthy that the development of the Canada Goose is relatively cautious compared to the rival canadian goose. In May last year, Canada goose announced its entry into the Chinese market. Apart from the establishment of the headquarters of Greater China, two entities flagship stores were opened in Taigu and Hongkong IFC, Sanlitun, Beijing. In September last year, Canada goose officially entered Tmall platform. The Chinese Commercial Daily reporter learned that, as early as 2009, the League had already entered the Chinese market and opened its first flagship store in Shanghai. Three years later, in 2012, the alliance could be formally launched on the official website of China.

Experts from China down Industry Association told reporters that the league has maintained a cautious attitude towards development after entering the Chinese market. In recent years, China's down garment market has developed rapidly, but consumption has changed rapidly. If foreign brands want to take a firm foothold in the Chinese down garment market, they should combine with local characteristics. In recent years, the league can not only cope with the international brands such as Canada goose, but also compete with the growing brands of domestic down coats. The relatively prudent development strategy helps to reduce operational risks and maintain long-term growth trend. Author: Wang Yue