WE LOVE SKI

Moncler - We Love Ski: Situational Analysis

FINAL PROJECT: SITUATIONAL ANALYSIS

GROUP 1:
NATASHA STANDARD
LAUREN HAWKINS
ANA TARDIO
LXFM 730 OL - MARKETING LUXURY GOODS
PROFESSOR ALESSANDRO CANNATA

Table of contents:
1. Company Overview

page 4

2. Brand Introduction

page 11

3. Situational Analysis

page 17

4. Potential Markets

page 19

5. Competitive landscape

page 25

6. Product Analysis

page 29

7. References

page 31

1. Company Overview
The Origin
Moncler is a French-Italian apparel manufacturer and lifestyle brand founded in 1952 by Ren Ramillon
which was initially dedicated to sporting garments for mountaineering however, most known for its
down jackets and sportswear.
The name is an abbreviation of Monestier-de-Clermont, a village in the mountains near Grenoble,
France. At the outset, Moncler produced quilted sleeping bags, a single model of a lined cagoule
(waterproof hood) and tents with a telescope structure and outside cover. The first quilted jackets
were conceived for protecting workers from the cold. They used the jackets on top of their overalls
in the small mountain establishment. The first to note them and realize their potential was the French
mountaineer Lionel Terray. The result saw the specialist range Moncler pour Lionel Terray: quilted
jackets, gloves, high-resistance sleeping bags, and extreme protection made them suitable for the
harshest climates. All were put to the test in the course of expeditions and were gradually improved.
The first Moncler down jacket was made in 1954. The same year Moncler quilted jackets were chosen
to equip the Italian expedition to Karakorum, which culminated with the conquest of the earths second
highest summit by Achille Compagnoni and Lino Lacedelli. Moncler also accompanied the French
expedition which reached the summit of Makal in 1995 and was the official supplier for expeditions in
Alaska organized by Lionel Terray in 1964. Additionally, in 1968 Moncler became the official supplier of
the French skiing team during the winter Olympics in Grenoble.
On occasion of the Grenoble Winter Olympics, Moncler became the official supplier of the French
national downhill skiing team. It was a special event that was also to mark the change in logo: Mount
Eguit, which rises up behind the village, was replaced by the cockerel. It was the French national
downhill skiing team itself that requested a variation on the quilted jacket: it was no longer to be
the double version but a single garment that would be more manageable, light, and well-suited to
competition requirements. Initially called Huascaran and then Nepal, with the addition of leather
epaulettes for resting the skis on without damaging the fabric, this more flexible and comfortable
version of the jacket was to all intents and purposes the precursor of the present-day Moncler jacket,
and heralded its success.
Chantal Thomass, a designer who worked with the company until 1989, overhauled the appearance
of the quilted jacket and she replaced the zipper with buttons and used fur trim, satin, and reversible
fabrics.
In 1992 ownership of the Moncler brand was acquired by the Pepper company, before transferring to
Fin.Part S.p.A. in 1998. This company operated in the high-end clothing sector, and its aim was to create a
reference point within the Italian luxury goods market.
In 1999 Remo Ruffini became part of the Fin.Part group with the role of Creative Director of Pepper,
and began a process of repositioning the brand. This led to Moncler products becoming increasingly
unique in nature.
Moncler - We Love Ski: Situational Analysis

2003, Moncler was bought out by the Italian entrepreneur Remo Ruffini, current president and creative
director who was to introduce the strategy of the global quilted jacket. Working on fit and materials,
the universal spirit of Moncler became increasingly identifiable, as did the variety of uses it lent itself to
at any moment of everyday life
2005 the private equity fund Mittel S.p.A. and Progressio S.g.r. S.p.A made their entrance in Moncler
contributing to the re-launch and re-organization of the brand and creating the basis for their future
development.
2006 Moncler introduction the first luxury collection dedicated to women, named Gamme Rouge, was
launched with the aim of continuing diversification of products. The garments in the Gamme Rouge
collection met the highest criteria in terms of quality, design and attention to production which the
collection revolves around.
2007 the first directly-managed Moncler store was opened in Paris. The Monclers flagship store is on
the Rue du Faubourg Saint-Honor in Paris. The Paris boutique signaled the start of a series of stores
openings in key cities throughout Italy, Europe, Asia, Japan and the Americas.
In 2008 the Carlyle private equity group invested into Moncler, thereby contributing towards the
brands growth plans. Additionally, in 2008, the Moncler Japan joint venture was set up with the aim of
distributing products on the Japanese market.
With the aim of pursuing a strategy to diversify its range of products, following the launch of the
womens Gamme Rouge range, the first Moncler brand collection for men, Gamme Bleu, was launched.
The range of production started at canvas down jackets which lends the product a unique touch.
2010, Moncler launched the Grenoble collection (named after its name sake) designed for men and
women and destined for outdoor sports was launched. The collection, which is technical but still
features elements of fashion, is inspired by the brands time-honored garments, particularly for skiing.
The IPO of Moncler on the Milan Stock Exchange took place on December 16, 2013, with an initial value
of 10.20 per share. The shares were 31 times oversubscribed and rose 47% on the first day, resulting in
a market capitalization of nearly 4 billion.
Having completed the operation, the shareholding structure of Moncler S.p.A. now comprises: ECIP M
(45%), Ruffini Partecipazioni (32%), CEP III Participation (17.8%), Brands Partners 2 (5%) and GoodJohn &
Co. (0.25%).

Moncler - We Love Ski: Situational Analysis

Traded as
Industry
Founded
Headquarters

BIT: MONC
Fashion
1952 (63 years ago)
Milan, Italy

Key People

Ren Ramillon , Founder

Remo Ruffini, President and Creative Director

Revenue
Website

694 Million
moncler.com

Mission Statement
Monclers aim is to pursue development of the brand in the segment of luxury goods worldwide, with a
direct strategy:

Ongoing work to strengthen the identity and uniqueness of the brands positioning;

Developing and consolidating strategic markets;

Assessment of selective expansion of the range of products, in segments which are compatible
with the brands distinctive characteristics.

This strategy has been pursued using the strengths of the Moncler brand as leverage and includes the
following objectives:
Reinforcing and expanding the mono-brand retail distribution network where the Moncler
Group intends to develop its own direct retail distribution network by opening new DOSs in the
most important and prestigious locations worldwide, in line with the brands positioning. The main
markets into which the Group intends expanding its direct retail distribution network include:
Europe (principally Russia, Eastern Europe and Middle East), the Americas (principally the United
States, Canada and Brazil) and Asia (principally China) and Japan. Moreover in 2011 Moncler has
launched its own online boutique, powered by YOOX Group, currently operating in Europe, the
United States and China which will soon be rolled out to the Japanese market and potentially other
countries as well.
Selective development of the wholesale distribution channel, where the Groups strategy
regarding the wholesale segment is geared towards consolidating it through ongoing and careful
management of its clientele. The aim is to increase targeted penetration of the Moncler product in
each individual store, whilst still maintaining the brands principle of selectiveness.
Developing the Moncler brand and its product ranges globally, through a selective strategy
of expanding the range of clothing products that are complementary and close to the founding
principles of the brand which include, in particular, knitwear and footwear, leather accessories and
eyewear.
Direct control of strategic business, developing direct sales structures and commercial branches
in order to be closer to the customer and promote growth of markets yet to be developed.
Increased efficiency and optimization of the supply chain complete the strategy of Moncler.

Moncler - We Love Ski: Situational Analysis

Monclers Values

Moncler is a byword for heritage, uniqueness, quality, timelessness and versatility; together these
factors underpin the brands philosophy. Constant innovation and outstanding quality are the
cornerstones around which research into the unique style necessarily revolves. The result sees
products made with the utmost care, guaranteed by production techniques whose sole reference
points are tailoring and Italys manufacturing tradition. Experimentation involves every aspect of the
Moncler brand, from design to production down to communication. The resultant campaigns create
new aesthetic codes thanks to partnerships that are sealed with top photographers of international
standing. The art and photography sphere has always been one close to the Groups spirit: initiatives
in these fields alternate and integrate with the brands own individual aesthetic and communication
philosophies. The world of luxury represented by the Moncler Group is driven forward by partnerships
that involve artists and designers, all of whom share a vision in keeping with the spirit of the times.

Moncler - We Love Ski: Situational Analysis

Down, the heart of each and every Moncler jacket, is extremely important to us. We ask our suppliers to
meet the highest quality standards, which for us represent a key point of differentiation that contributes
to the excellence of the Moncler product. However, for Moncler, quality means something more.
Indeed, for us the origin of the down we use is also fundamental.
With the aim of ensuring respect for animals, our contracts with suppliers require them to respect the
following principles at every step of the supply chain:

the down must be taken exclusively from farmed geese and geese coming from the food chain

the animals must be handled in a manner that prevents all forms of suffering

no form of live plucking is permitted

the down cannot come from force-fed animals

In collaboration with experts from prestigious universities, research institutions, certification entities
and a non-governmental organization that deals with the protection of animals on farms, Moncler has
developed a Protocol that all suppliers are required to follow scrupulously in order to guarantee full
respect for the animal, traceability and the highest quality along the entire down supply chain: from
farms to the down processing companies.
Moncler is continuously committed to certifying its supply chain by conducting on-site inspections to
ensure compliance with its Protocol. To guarantee the utmost impartiality, certification activities have
been assigned to a qualified third party, which is in turn subject to auditing by another accredited third
party.
We strongly believe that the requirements laid down guarantee high quality standards for us at Moncler
and especially for you, our customers. But we will not stop here and, as in everything that we do, we
will continue to do even better, while always keeping you up to date.
Board of Directors
Chairman of the Board of Directors and CEO
Vice Chairwoman of the Board of Directors
Independent Director
Director

Remo Ruffini
Virgine Sarah Sandrine Morgon
Nerio Alessandri
Vivianne Akriche

Independent director

Alessandro Benetton

Director
Director
Director
Independent director
Independent director
Director

Christian Gerard Blanckaert

Sergio Boungiovanni
Marco Diego De Benedetti
Gabrielle Galateri di Genola
Diva Moriani
Pier Francesco Saviotti

Moncler - We Love Ski: Situational Analysis

Employees
In 2014 Moncler had 1,407 Full-Time Equivalent employees and operates through a network of 172 monobrand stores (of which 134 Directly Operated Stores), as well as through the wholesale distribution
channel. Key Factors
The Moncler brand was re-launched by Chairman Remo Ruffini in 2003. Since then, over the course of
the years it has seen constant and significant growth, thanks to a clear and coherent strategy that has
managed to combine the unique identity of the brand with the positioning it has achieved on the luxury
goods market, a diversified consumer target, by increasing direct control over distribution and by using
innovative communication with the end consumer.

Key Factors
The Moncler brand was re-launched by Chairman Remo Ruffini in 2003. Since then, over the course of
the years it has seen constant and significant growth, thanks to a clear and coherent strategy that has
managed to combine the unique identity of the brand with the positioning it has achieved on the luxury
goods market, a diversified consumer target, by increasing direct control over distribution and by using
innovative communication with the end consumer.
The key factors of the Moncler success story
Unique positioning in the luxury sector on an international scale, with a history spanning over 60
years, which combines the brands heritage with innovative, versatile and timeless products.
Excellence in product quality and innovation, thanks to the ability to identify new trends whilst
respecting the brands distinguishing features.
Control over the distribution network, both wholesale, through directly-managed showrooms,
and through retail. In particular, the brands presence in the most important multi-brand stores and
the main luxury department stores, and a retail strategy that hand-picks the worlds most prestigious
shopping streets and resorts, have made it possible to strengthen Monclers exclusive position. The
distribution network is also supported by an efficient value-chain.
Geographical diversification with a consolidated presence in Europe, Asia and the Americas.
A business model that is flexible and scalable, thanks to an organization which is efficient,
integrated and focused on quality control and the chain of value, with direct management and
coordination of the phases with the greatest added value and the use of hand-picked outsources for
manufacturing purposes with whom stable and lasting relationships are established.
A close-knit and motivated senior management team led since 2003 by Chairman and CEO,
Remo Ruffini - with a wealth of experience, which has proven the ability to bring important results
in key areas for consolidating the Group. These include development of the retail channel, brand
management and geographical expansion.
A careful, targeted and innovative communication strategy which generates interest in the brand
and the product, as well as conveying the values of Moncler, which aims to be a style icon that is
transversal and timeless.

Moncler - We Love Ski: Situational Analysis

Key Figures

Moncler!Sales
Millions
+20%
+19%
+35%
+29%

694.2

580.6

489.2

363.7

282.5

2010

2011

2012

2014

2013

2014

2010
Moncler has gained an impressive
growth over the last 5 years thanks to its
expansionist strategy. The forecast for the
brand is continue growing on the upcoming
years opening new points of sales,
improving their e-strategy and adding new
lines to Moncler world.

27%
38%$

62%$

73%
Wholesale
Retail

To keep the maximum control over their

products the brand has been opening
more own retail stores and reducing their
presence to very selective wholesalers, as
we can see on the chart.

6%

14%

19%

18%
42%

Italy
EMEA

Over the final chart we can see the evolution

of the markets for the brand being EMEA and
Asia the biggest ones on 2014 (this last one
based on the good response from Japan
and South Korea).
Moncler - We Love Ski: Situational Analysis

Asia & Row

Americas
34%

33%
34%

Italy
EMEA
Asia & Row
Americas

10

2. Brand Introduction
Brand description
Moncler-branded products range from the high fashion segment with the Gamme Rouge and Gamme
Bleu collections, which feature exclusive products and selected distribution to boutiques located in
the worlds most prestigious shopping areas, to the Grenoble collection with its stylish sporting and
technical garments. They also include Special Projects with cutting-edge innovative design, and the
main collection, the best-known and most widespread range of Moncler products, divided up into the
archive, bridge, sport chic, premire and enfant ranges for men and women.
Following a period of widespread circulation in the 80s, Moncler became a well-known brand amongst
young people and a fully-fledged fashion phenomenon in its own right. Starting from 2003 when
Remo Ruffini took over the brand, this saw the start of a process to reposition the brand, with Moncler
products acquiring an increasingly unique nature. In doing so they evolved from being a range of
products broadly aimed at the sporting market to versatile lines that consumers of every type, age,
identify, origin and culture can wear, on any occasion.
The Group mainly operates in four geographical areas worldwide: Italy, Europe, Asia/Japan and
Americas.
Ongoing attention to uniqueness and quality, combined with deep-seated innovation in both style and
technology, have ensured Moncler garments are versatile, timeless products that combine tradition with
a contemporary approach.

Products Offered
The philosophy of the Moncler Group is today geared towards creating unique products of
outstanding quality that are timeless, versatile and innovative. The motto born in the mountains, lives
in the city explains how the Moncler brand evolved from a range of products designed for sporting
purposes, with versatile lines which consumers of all types, ages, identities, origins and cultures can
wear on any occasion.
Moncler brand products range from the high fashion segment with the Gamme Rouge and Gamme
Bleu collections, which feature exclusive products and selected distribution to the worlds most
prestigious boutiques, to the Grenoble collection with its greater technical and innovative edge. They
also include Special Projects, the experimentation laboratories resulting from specific partnerships
with cutting-edge designers, and the products of the Main collection which combine high quality with
greater usage opportunities.

Moncler - We Love Ski: Situational Analysis

11

Collections are titled below:

The Main collection, the best-known and most widely-distributed range of Moncler-branded products,
combines constant research into high qualitative standards, with wider usage applications.
The Main collection is divided into the four segments:
1.
Archive
Iconic and figurative products inspired by Monclers time-honored tradition, featuring a distinctly sporty
range of goods that cover all four seasons. The flagship product is the nylon down jacket.
2.
Sport Chic
Dedicated to the urban and working environment. The result of a combination of painstaking research
into fabrics and considerable innovation of forms.
3.
Bridge
Features a product which bridges the gap between the Archive segment and Sport Chic.
4.
Premire
The most classic, elegant and refined segment of the Main range, the womens garments feature
elegant and sophisticated silhouettes which constitute an evolution in the traditional down jacket.
Grenoble
The collection is inspired by time-honored Moncler garments used for Alpine sports, offers a range of
outfitting products for the autumn/winter season, as well as for spring/summer. Grenoble men and
women was created in 2010 as a technical collection with fashion-related content, aimed at outdoor
sports. The Grenoble collection is aimed at the mid-to-high end of the market, and is distributed
through hand-picked channels to preserve its exclusive nature.
Special Projects
Moncler has embarked upon partnerships with important stylists and cutting-edge designers. The result
sees the Special Projects, garments with a highly innovative design that have provided inspiration for
the other ranges as well.
The early partnerships with Japanese stylists led to the creation of limited edition collections, featuring
powerful reference to Oriental style and culture, particularly from Japan.
The early partnerships with Japanese stylists led to the creation of limited edition collections, featuring
powerful reference to Oriental style and culture, particularly from Japan.
Infant
A segment separated in two ranges, baby and junior new interpretations of the adult ranges.
Gamme Rouge and Gamme Bleu
The Gamme Rouge collection dedicated to women was created in 2006. It develops garments mainly
jackets around the criteria of high quality, careful designing and the utmost care to production, all
factors that typically define the world of haute couture.
The Gamme Bleu collection for men was created in 2009 and includes garments that meet the need for
Moncler - We Love Ski: Situational Analysis

12

products of a sartorial nature.

The garments for the first Gamme Rouge and Gamme Bleu ranges were the result of specific studies
that sought outstanding solutions from the stylistic and qualitative standpoint. They were made in Italy
with a process carried out entirely by hand, which made it possible to guarantee the highest standards
of quality for the finished product.
Accessories
Moncler also develops complementary products linked to its heritage, such as the knitwear, the
soft accessories, the footwear and the leather accessories. The accessory collection includes the
marcher range, composed of footwear for men and women, and the porter range comprising bags,
backpacks, suitcases and leather goods.
Eyewear
At the beginning of 2013 Moncler established a joint venture (51% Moncler) with the Allison group
for designing, producing and distributing sunglasses and eyeglasses through the Moncler Lunettes
collection. The collections products are distributed in Moncler single-brand stores, as well as a select
network of opticians on an international scale.

Current Position
Monclers focus is on new store openings, international growth and e-commerce
Monclers Key Value Creation Metrics:

Accelerated the roll out of a distinctive retail channel of Moncler brand in all key geographies,
growing the retail network from 6 to 135 stores particularly in Asia and the U.S. where there were no
stores pre-Carlyle ownership

Strengthened the management team by hiring several new senior executives

Consolidated Moncler brand presence in the Japanese market, a key market for the Company,
by converting the distribution agreements into joint venture agreements fully controlled by the
Company

Bought the Moncler childrens line license by establishing a dedicated joint venture with the
previous licensee

Enhanced profitability through sale of non-core sportswear brands

Founded in 1952 in Grenoble, France, today Moncler is a global brand in luxury outerwear. With
Carlyles assistance, Moncler restructured its corporate organization and created two focused divisions
dedicated, respectively, to the Moncler brand and the Other brands (Henry Cottons, Marina Yachting,
Coast Weber & Ahaus and 18CRR81 Cerruti). The Moncler brand, which accounted for 78% of 2012 group
sales, is a global manufacturer of down jackets with a well-established position in the luxury market. The
brand has evolved successfully from an iconic product distributed in only a few countries in to a global
luxury brand.

Moncler - We Love Ski: Situational Analysis

13


Other brands, which accounted for 22% of 2012 group sales, were sold shortly before the IPO, as
they had a lower positioning compared to the Moncler brand and were dilutive in term of profitability.
This helped to improve and hallmark the equity story for public investors.

Perceptual Map

Fashion & Luxury

Technology & Innovation

Moncler - We Love Ski: Situational Analysis

14

New Store Openings and International Growth

The Moncler brand has accelerated the expansion of its international presence. This strategy is focused
on new store openings and the direct management of strategic markets and distribution channels.
Between October 2008 through December 31, 2013, it has opened 129 new Moncler mono-brand
stores bringing the number of stores to 135, including flagship stores in Hong Kong, Beijing, Shanghai,
Hangzhou, Shenyang, Nanjing, Tokyo, Osaka, Munich, London, Rome, Geneva, Zurich, Copenhagen,
New York, Chicago, Los Angeles, Miami, Sao Paolo and Istanbul.
Through this expansion, Moncler has successfully increased direct retail sales from 13% of total sales
in 2008 to 58% in the fiscal year ending December 31, 2013. With the new store openings, the company
has also successfully diversified its geographic revenue stream. The Italian market has decreased from
nearly 52% of total sales in 2008 to approximately 22% in 2013. In the 2008-2013 period, Moncler has also
increased sales in Europe. To support this growth, Moncler has added local management teams in
China, Japan, Russia and the United States.

E-Commerce
On September 1st 2011, Moncler began commercial online trading in the US and Europe and in 2012
was extended to Asia Pacific and Japan. Excellent results were reported in 2012 with e-commerce sales
reaching more than 6 million Euro in the first full year of operation.

Target Market
Moncler Jackets offers series styles and colors that are appropriate for every season. Moncler sale
outlets series are different from other brands because they come in luxury, comfort and fashion, and
in a wide variety of colors, making them stylish all year long and for nearly at any type of occasion.
Unlike other brands of jackets Moncler never goes on sale and is able to maintain a stable company.
Which gives the product a higher standards among consumers which give them a desire to buy there
expensive jacket. Moncler does not only manufacture and sell its products to a well-defined target
market, but also sells a lifestyle. And make it a way of life. Moncler doesn't have outlets, nor sample
sales. The brand emphasizes the personal selling.
Moncler began with just supplying consumers luxury products exclusively for the rich and famous.
Even though the market of luxury products has increased excessively. Moncler still targets its product at
wealthy consumers. And Moncler product is full of creativity, craftsmanship high quality and expensive
or even pricey prices. Which only adds to the product attributes and gives consumers gratification of
pursing an expensive item.

Moncler - We Love Ski: Situational Analysis

15

3. Situational Analysis
According to Altagamma report, the Luxury industry grew in 2014 by 7% over 2013 generating a value
of 865Bn ($1,124.5Bn approximately). This studies also outlines that the trend for the luxury market is an
ongoing growth for all the subsegments on coming years.
According to this study the main trends are the following:
Increase on self-indulge and experience - experience is as important or more than psychical goods
Accessorization - accessories have become the star products of luxury market
Growing concentration of wealth driving brilliant growth - luxury considered as a wealth symbol
Customer centric
Mid - Income Aspirational consumers jumping from aspirational to luxury brands to show status
Moncler is considered part of the luxury apparel market. This fashion luxury brand has focused its
strategy on its heritage and values, as well as on the most cutting edge technology.
That been said, we have to take into account the actual volatility of the market after the drop of China
volumes and the economic problems in Europe and how this could affect the luxury market. In fact,
according to Monclers CEO, China is not the main priority in the brand strategy because the heritage
on winter sports is not a tradition there yet, since the brand is really related to the ski and winter sports
although the brand is making urban the ski coats and jackets through technology and fashion, is on their
road-map. In fact, the brand is opening more and more shops in Asia Pacific area. The reasons are the
following:
1. Japan is one of the most important markets for the brand and has a tradition in ski and winter clothing,
furthermore, Moncler uses Japanese technology in a lot of their garments.
2. South Korea and China although they do not have a big ski tradition, they are becoming more
interested and developing new ski stations.
The US market is now very strong, and the trend is that this market will continue growing over the next
years. US is the second market in importance for Moncler. According to the report From Austerity to
Opulence`. Millenials are changing the way of consuming in the United States, thanks to the recovery of
the economy and the increase of their incomes. After several years of strict control over their spending,
they see the light at the end of the tunnel and they are now willing to spend on luxury goods and
experiences as a symbol of their new status. On the other hand we should consider the increase on
expenditures coming from the Baby Boomers, who are living their second youth, (`Age, Rebranded` WGSN report). Being the biggest generation in the US and having the highest incomes with no other
financial burdens, this generation is dedicating their expenditures to simply enjoy life. Traveling and
experiences are the main segments where they expend their money. Moreover, they are the most
marketable generation and they do want to feel young again.
Despite the economic crisis affecting the European market, not only have there been growth on the
luxury segment as such; but also significant increase in unique high-ended experiences vacationing
featuring. Europe has always been the ski country for excellence. This sport was born there and despite
Moncler - We Love Ski: Situational Analysis

16

the economic crisis suffered by some of their countries, Europe and USA are the most attractive
countries for Moncler. It is worth nothing that Monclers brand awareness and its positioning in Europe
are really strong. In the Old World, Moncler represents the most fashion and luxurious sport coat brand.
At the same time, ski customers are really loyal to them, which allows the brand for an easier entry there
than in Russia or China.
The self-indulge trend is benefiting Moncler, which strategy is focus on diversification and growth to
faced a volatile environment.
One of the focus of the luxury market is provide the best experience while delivering the most cuttingedge experience to their customers. Moncler is very well-know for their innovations, not only on their
fabrics and textiles but also for delivering heritage, known-how, and state-of-the-art technology at its
finest.

Moncler - We Love Ski: Situational Analysis

17

4. Potential Markets: Industry Profile

Industry profile
As their growth strategy, Moncler has determined to develop a new product line for ski equipment.
After performing a deep research in the industry we had to estimate the market value of the industry
based on the industry value in the US for 2014 - 2015, $4.5Billion, and the number of visitors to the
American Ski resorts during the same period of time. Thanks to the data of the visitors in other parts
of the world we have been able to estimate the value of the ski equipment industry in approximately
$21.4Bn. We also took into consideration that the estimated number of skiers is around 120 million
worldwide, with the 21% of them being from the US; after dividing the value of US market by this 21%
we obtained the spending per person. We multiplied this value by the 120 million skiers, and thus we
got the same market value, $21.4B This value can be split by region as follows:
Europe holds the biggest market share with
the Alps representing majority of the market.
Since Europe is the place where ski was born
is easy to understand why the majority of the
market is so consolidate in this region.

Ski Equipment Market Value & Share

$Billion

2.14

4.5

America
Asia Pacific
Europe
3.0
Eastern Europe &
Central Asia

11.8

Evolution on Ski Visitors per Region

120%
100%
55%

80%
60%

2015
2014

40%
21%
14%

20%
21%
0%
America

56%
10%

14%
Asia Pacific

9%
Europe

Moncler - We Love Ski: Situational Analysis

Eastern Europe
& Central Asia

It is also worth pointing out that the largest

markets are struggling to attract new skiers.
The Baby Boomer generation is the skiers
generation, however attracting newer
generations will be the main challenge for the
next decade.

Nevertheless, the evolution in the last two ski

seasons has changed according to the most
recent studies. Europe is losing visitors, due to
the economic crisis, the high cost of the Euro,
which was impacting on the decision of the
skiers to go to more affordable and modern
locations, and the lack of new skiers.
Asia, Eastern Europe & Central Asia markets
are going up little by little thanks to the
growing wealth, new consumers, new visitors,
new resorts and modern ski stations and
better value on the exchange rates. Although
part of this market has been affected by the

18

drop in sales in China and the continues continuous of the industry in Japan. The fastest-growing ski
markets in these areas are mainly South Korea and China. However, they are still far away from the
market share Japan used to have when its industry was blooming.
Eastern Europe, Central Asia, and Asia Pacific are the markets that present the greatest potential the
near future because they are building up at higher rate that the traditional ski regions. The fact that
these regions are creating new resorts will be translated in the future into higher market share for them.
Reason being, the skier prefers to go to the nearest, most modern locations, while keeping similar snow
conditions.
Another important trend in the industry is the increasing attendance to indoor ski centers. Nothing like
to be outdoors in the mountains, but today it does not really matter which part of the world you are in,
or what the weather is like. If you have an indoor ski center you can go to ski every day or weekend.
Around 50 indoor snow centers have been set up over the last 25 years around the world and 17.2
million skiers visit them. Although it is always winter in some part of our planet, this is a good solution to
enjoy ski without traveling to the other side of the globe. This will help smoothen out the seasonality for
the winter apparel and ski equipment.
The last key factor to take into consideration in the ski equipment industry is the equipment rental. Since
it is Being an important trend for beginners and non usual skiers, it helps decrease the price point and
attract new consumers.
In conclusion the main challenge for the industry is to attract new generations and get them engaged
in this sport as the Baby Boomers are, so that they do not loose ground in the market. Innovation and
customer relationship management will be the keys factors that will guarantee the future of the ski
market.

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PESTEL Analysis
For Moncler growth strategy on the main markets where the brand is operating is important. In order
for Moncler to develop this new line, the following are the main factors to consider in every region
according to the latest economic trends outlined by the IMF:

Asia Pacific Region

This region is expected to grow by a steady 5.4 percent in 2015 - 16, remaining the global growth

leader. This growth will bring in a relatively strong labor market, and will increase the disposable

income growth, as well as a gradual recovery in advanced countries economies.

Lower commodity prices will help to increase the consumption.

There is still an existing risk for a sharper slowdown in China, due to the shift in the
composition of Chinas demand.

Weak growth in Japan.

In general, challenging economic environment.

Americas Region

US Economy is gaining momentum after a slow beginning of the year.

US unemployment rate a 5 percent.
Increase on disposable income.
New presidential elections coming up in 2016 could affect some laws, economic segments and
interest rates.

Europe

Diverse growth patterns in Central, Eastern and Southeastern Europe.

Political instability in some of the countries - Italy, Spain, Greece and Portugal mainly.
Terrorism affecting some countries of Europe - Turkey, France, Spain, UK...
Low inflation and low prices.
High unemployment rates in several of the region countries, affecting the disposable income.
High market volatility and geopolitical problems are the main risks inn this region.

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Profit characteristics and basis competition

Moncler is one of the most fashion and luxurious outdoor apparel brands in the actual market. In
order to them to take their strategy to the next level and a step ahead of their competition, Moncler
will develop a ski equipment line. Being closely connected with the Grenoble mountain, while still
attached to the most cutting edge Italian style, the company is well-known for their state-of-the-art
technology and unique designs. Leveraging on their known-how and technology expertise, Moncler
will take this step ahead, thanks to a licensing agreement with one of the most innovative ski equipment
manufacturers.
Using the existing distribution network, Moncler will improve their traffic at their stores and the visibility
in the city and the ski stations.
The primary profit characteristics for this project will be:

Brand image that relies the new product line

Capitalizes the new line on the strong channel distribution network

Luxury fashion meeting technology around the ski market

Engage Millennial generation with the ski heritage

Increase revenue and profit by complementing their offering

The basis competition will be:

Establish an agreement with a ski equipment brand, which relates to Monclers values

Improve the knowledge on equipment technology

Further differentiation from competitors by developing similar core products with an

existing ski equipment company to complete a holistic offer.

Moncler - We Love Ski: Situational Analysis

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Distribution channels

Moncler has 134 retail stores worldwide. This will be the primary distribution channel of the new product
line. This will help to generate more traffic at the brick and mortars and to enhance the Moncler world
and Moncler offering.
The brand counts with 88 specialized corners at the most important wholesalers, which complements
their own brick and mortar distribution channel set up.
Following its DNA, Moncler developed a cutting edge website including an online shop where
customers around the world can place their orders. This online channel become a key distribution
channel for those customers who do not have a store near and for new generation customers. Free
shipping and the possibility of customization will help as well as improve the online experience of the
customers.
Moncler - We Love Ski: Situational Analysis

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Moncler - We Love Ski: Situational Analysis

23

5. Competitive Landscape
Potential Competitors
In this moment, we can consider Canada Goose, North Face and Patagonia as the potential competitors
for Moncler. But the main competitor for Moncler is Peuterey. This Italian brand, compete with Moncler
in technology, innovation and price point, but their designs are more classic and formal than Monclers
who aims for the most fashionable garments.

SWOT

Strengths

Weaknesses

High-quality materials
Expertise and Known-how
Previous success of capsule collections
Visibility in the media

Limited variations of merchandise

Fairly high price point

Opportunities

Threats

Capitalize on established brand identity

Fulfill the need for a luxury brand in a

niche market

Additional expansion into the ski resort

business

New merchandise too similar to current

offerings

Competition with other brands

Counterfeiting

Market volatile momentum

Moncler - We Love Ski: Situational Analysis

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Future Competitors
Considering the new product line as a Moncler brand extension, we can consider Canada Goose,
Bogner and ArcTeryx as the future competitors.

Brand, Quality and Experience

Our target consumer will purchase Moncler winter sports wear and equipment based on brand, quality,
and experience level. They are fashion conscious, but realize that the quality of the product must be
up to par as well. The merchandise must be able to withstand cold weather and aid in providing the
best ski and snowboard experience for its wearers. Their experience level will dictate their equipment
needs, giving Moncler the opportunity to fulfill the needs of various consumers with their winter sports
products.

Consumer Characteristics
The snow sports consumer is diverse and has many characteristics that are unique to this particular
demographic. Moncler is aware of these characteristics and will use them to create the best snow
sports apparel and equipment for its target consumer.
Participation: More males then females participate in both skiing and snowboarding.
Age Range: 25-34 year olds are the largest age demographic amongst all skiers and snowboarders
Range of Products: Snow sports outerwear is purchased the most, followed by equipment, apparel
accessories, and equipment accessories.

Moncler - We Love Ski: Situational Analysis

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Target Consumers

Gender: Men (55%) and Women (45%)

Age: 25-55

Location: Megacities, high-ended suburbs

Income: $70,000- $500,000

Status: Well educated with a directive position or owning a company.

Interests: Focus on experiences and spending time with family and friends, taking vacations,
attending local social events. They love to have an active life and participate on outdoor sports and
activities but at the same time they want to remain trendy and sophisticated even when they are doing
sports activities. Comfort, high-end fashion, exclusivity, and cutting edge technology are their main
premises to select a brand.
This is a wide group of people could be splitted on three consumers types as follows:
The Absolute Luxerer
Age
35 45
2.2
Million Consumers
30K person/year
67B year market
Clothing, Accessories and Experiencial luxury are their main
purchases
Megacitiers
Age
30 35
2.5
Million Consumers
17K person/year
41B year market
Leather goods, Clothing and Experience luxury are their main
purchases
Experiencers
Age
45 50
2.8
Million Consumers
13K person/year
35B year market
Exclusive vacations, Luxury Resorts and activities are their main
purchases
As a desired marketing, we can highlight the Little Prince segment. This segment is very attractive for
the brand because they are the next generation and they have been raise with luxury as a comodity.
Age
18 25
1.6
Million Consumers
10K person/year
17B year market
Clothing and leather goods are their main purchases

Moncler - We Love Ski: Situational Analysis

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Consumer Segmentation
Luxury-Value Segmentation
This segmentation explores how consumers perceive luxury and its value based on various factors and
divides them into four categories; non-luxury consumers, rational consumers, social seeker consumers,
and materialistic consumers. Because the brand is positioned in the luxury market, this expansion
will help Moncler cross-over into the snow-sports industry where many consumers value quality and
functionality in cold-weather. Moncler will target rational, social-seeker, and materialistic consumers and
may also have the opportunity to change the perception of its brand, to non-luxury consumers.
Rational consumers will be attracted to Moncler winter sports merchandise because of its quality
and fit. They buy items that they like, that look good and are functional. Social-seeker consumers use
material items to project a certain status. This consumer segment will be attracted to the Moncler logo
and how wearing this apparel will make them look in the eyes of others. Material-istic consumers buy
luxury items to make themselves feel better and hang around others who are materialistic and brand
conscious as well. Moncler will be their choice brand for winter sports merchandise because of its
style, price point and brand positioning. Non-luxury consumers will not initially be attracted to this
merchandise, but will notice its quality and style in comparison to other ski and snowboard equipment
brands. Some consumers in this segment, may end up purchasing merchandise due to motives all their
own.

Moncler - We Love Ski: Situational Analysis

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6. Product Analysis
Current Merchandising Strategy
Monclers current merchandising strategy is to appeal to a diverse group of potential consumers and
capitalize on the heritage of Moncler, as the premier Italian outerwear company. The brand recently
became publicly traded and has continued expansion under the leadership of Remo Ruffini. Monclers
distribution strategy includes global branded retail stores, partnerships with department stores and
an appealing and easy to navigate website with an e-commerce shop. Moncler is sold in the worlds
luxury department stores and boasts more than 172 brick and mortar stores in Asia, Europe, and the
United States. The brand is selective in where its merchandise is sold and how it is presented, careful to
maintain an image of luxury and exclusiveness.
In the past Moncler relied solely on sponsorship and the endorsements of figures in the media. But the
brand has recently become more active in communicating with its customers through marketing and
ad campaigns and the use of social media. The brand realizes that it must take a hands on approach
and strategically target potential consumers all over the world. The brands senior management team
is committed to the development of the brand, its retail channel and geographic expansion helping
Moncler maintain a solid positioning in the luxury apparel market.

Merchandise mix
Apparel (Men & Women)
Down Jackets
Jackets & oats
Vests
Sweaters
Tops
Accessories (Men & Women)
Shoes
Handbags
Cases
Eyewear
Hats
Scarves & Gloves
Key rings

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Opportunities & Weaknesses

Opportunities
Moncler has already built a strong identity and designing snow sports equipment and apparel is a
natural and logical extension for the brand. The company will have the opportunity to fulfill the need
of luxury consumers who are also skiers and snowboarders, furthering engaging with consumers as
a lifestyle brand. Entering this market with equipment and apparel will also provide Moncler with the
opportunity to expand into the ski resort, providing an additional business venture for the company,
once established in the industry.
Weaknesses
Although Moncler has a diverse merchandise mix, there is only so many variations that it can make
to its staple designs. Because the brand is best known for its down jackets, consumers may feel that
Moncler does the not have the expertise or creativity to produce fashionable, high-quality winter sports
merchandise that is also functional. The brand will have to ensure that they market the merchandise
features and convince prospective consumers that its can compete with traditional winter sports
companies. Its high price point may also be deemed a weakness, but its prices must be consistent with
the quality of the brands product and its positioning as a luxury brand.

Moncler - We Love Ski: Situational Analysis

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