Moncler scraps catwalk shows for the social

media generation
By Rachel Sanderson in Milan

Luxury fashion group to target millennials with ‘flash’

events and online collections
Moncler, the luxury goods company behind €1,000 puffa jackets, is closing its
twice-yearly catwalk shows as smartphones revolutionise the industry with
consumers clamouring to see new fashions more frequently online.

The decision by Remo Ruffini, founder and chief executive of Moncler, who in 10
years turned Moncler from a bombed-out French skiwear brand into a company
with a market value of near €6bn, also will result in the exit of designers Thom
Browne and Giambattista Valli.

In an interview with the Financial Times, Mr Ruffini, 56, said the pair had done
‘an amazing job’ in the past eight years but consumers’ changing shopping
habits meant he needed ‘a new and different energy’.

After ending the Gamme Rouge and Gamme Bleu catwalk shows following this
winter’s collections, Mr Ruffini said his biggest stores would become the venues
for more frequent launches of new designs, as often as every two months.

Instead of fashion shows, Moncler will stage one-off spectacular events that
target social media Source: © Reuters.

‘I believe in creating a new energy for the consumer at the sales points and
communicating as fast as possible,’ said Mr. Ruffini at Moncler’s newly opened
flagship store in Milan, which is designed to feel like an Alpine chalet.

Instead of fashion shows, Moncler will stage one-off spectacular events that
target social media. The group is holding a ‘flash art’ event in Hong Kong this
week, which will see 12,000 Moncler mascots in different locations around the
city. The event has been organised with Instagram and other social media in
mind.

Mr. Ruffini said he was also considering plans to create the ‘kind of energy’
found in upscale multibrand stores such as Los Angeles-based Maxfield and
London’s Dover Street Market, ‘where you find designers one next to another’.
Nonetheless, he denied market speculation he plans to acquire luxury rivals.

Mr. Ruffini, a university drop out, built Moncler’s success by spotting the trend
for luxury casual wear. ‘Casualisation’ is one of the main trends driving growth
in the €250bn luxury industry, according to Bain & Company.

The move by Moncler follows a week of C-suite turmoil across the industry as
brands seek new managers to adapt their businesses to millennial and
Generation Z shoppers, who it is estimated will make up nearly half of luxury
consumers by 2025.

LVMH, the world’s largest luxury goods group, last week announced the exit of
Sidney Toledano, longtime chief executive at Dior, to bring in Fendi chief Pietro
Beccari; at Italy’s Tod’s, billionaire founder Diego Della Valle handed over
operational management to former LVMH and Bulgari manager Umberto Macchi
di Cellere; and Swiss group Richemont elevated Jerome Lambert to chief
operating officer and named Emmanuel Perrin, a former director at Cartier, as
head of distribution for its watch brands.

Mr. Ruffini says one of the biggest tests for the industry is adapting to the
Chinese social media platform WeChat, where shopping is integrated within the
chat platform. If technology in the US and Europe is moving fast, ‘in China they
are going incredibly fast,’ he said.

Source: from ‘Moncler scraps catwalk shows for the social media generation’,
Financial Times, 13/11/17 (Sanderson, R.).

Discussion questions
1. Why is Moncler closing its twice-yearly catwalk?

2. What have been, and are, the implications for the Company’s resources?
1
Moncler is closing its twice-yearly catwalk shows because consumers are increasingly relying on social media
to see new fashions more frequently. CEO Remo Ruffini believes that the changing shopping habits of
consumers require a new and different energy. Therefore, Moncler is moving away from traditional fashion
shows and will instead host more frequent launches of new designs at its biggest stores, as often as every
two months. The company will also stage one-off events that target social media to generate buzz and
excitement around its products.

2
The implications for the company's resources are that it will need to invest more in social media and digital
marketing to reach its target audience of millennials and Generation Z consumers. Moncler will need to hire
social media experts to help create and manage these one-off events, which are designed to generate buzz
and excitement around its products. The company will also need to develop new marketing strategies that
are tailored to these younger consumers, who are more likely to use social media to discover new brands
and products. Additionally, Moncler will need to ensure that its biggest stores are equipped to handle these
more frequent launches of new designs and that it has enough inventory to meet demand. Overall, the
company will need to be agile and innovative in order to adapt to the changing fashion landscape and
remain competitive in the luxury market.

Moncler is closing its twice-yearly catwalk shows due to the changing shopping habits of consumers, who are
increasingly turning to social media to see new fashions more frequently. The company's CEO, Remo Ruffini,
believes that staging more frequent events and launching new designs every two months at its biggest stores
will create a new energy for consumers and communicate new collections as fast as possible.

The implications of closing the catwalk shows are that Moncler will no longer have to allocate resources
towards organizing and hosting these events. Instead, the company will be able to focus on developing and
launching new collections more frequently, as well as staging one-off events that target social media.
However, the exit of designers Thom Browne and Giambattista Valli may have some short-term implications
on the company's design capabilities.

Moncler's resources include its brand name, its network of retail stores and distribution channels, its design
team, and its supply chain. The company's competencies include its ability to design and produce luxury
casual wear, its marketing and branding capabilities, and its ability to adapt to changing consumer
preferences. Moncler's capabilities include its strong brand reputation, its ability to attract and retain top
design talent, and its supply chain management expertise.

Moncler's success has been largely driven by its ability to tap into the trend for luxury casual wear, which has
been a major driver of growth in the luxury industry. The company's strong brand reputation and its ability
to create high-quality products that appeal to consumers has also been a key factor in its success. To
continue to succeed in the future, Moncler will need to focus on developing new resources, such as a
stronger social media presence and the ability to adapt to new technologies such as WeChat. The company
may also need to acquire new resources, such as strategic partnerships with other luxury brands or
investments in emerging technologies. Additionally, Moncler will need to continue to attract and retain top
design talent to ensure that its products remain innovative and appealing to consumers.