Digital Push
Moncler’s ceo and chairman wants to keep the brand in the top league.
Moncler’s Remo Ruffini talks about doubling the share of digital in the group’s revenues, even as it reports a first-half loss due to the pandemic.
MILAN — For the first time, Moncler SpA reported on Monday a loss in the first half of the year, impacted by the COVID-19 pandemic — but the company is setting the foundations for a digital transformation that aims to double the share of its online business in three years.
The online business now accounts for 10 percent of revenues, said Remo Ruffini, chairman and chief executive officer of the company, admitting this was “a super ambitious challenge.”
In an interview with WWD, Ruffini underscored that the challenge in being digitally native is “to create a strong digital culture within the company, changing the mind-set and vision of people.”
He drew a comparison with the early days of Moncler, when he shifted the company from a wholesale model to a retail one.
“This is a next step for the company at a time when those that will not become digital first will be downgraded to the B league. I want Moncler to remain in the main championship, modern and ready for the future.”
The luxury company is bringing its e-commerce platform in-house, upon the expiration date of its contract with the Yoox Net-a-porter Group after nine years.
Moncler paid tribute to the YNAP collaboration, describing it as “fruitful” and instrumental in helping to grow the brand’s sales online “well beyond expectations.” Bringing its e-commerce in-house will begin with the U.S. and Canada in October and be completed in 2021.
In addition, Moncler will launch a fully integrated omnichannel e-commerce platform in 2021. The new platform will be inspired by the world of entertainment, and will be focused on ease of navigation, customized content and product personalization features.
Moncler’s digital strategy predates the months of lockdown, and Ruffini pinpointed the launch of Moncler
Genius in 2018 as “a turning point” for the company. He noted however, that the pandemic had accelerated the use of technology, also in Italy, becoming “inevitable.”
The digital platform must be employed not only for communication but also commercially. “We must know how to communicate and sell, but even more create a physical experience beyond the simple transaction. Retail must be transformed as a site where you create the brand and the experience,” he explained. Accordingly, while believing in quality wholesale, he sees problems ahead for this channel, if customers are no longer fascinated by the transactional experience and he pointed to past points of reference such as Barneys.
The digital channel must be kept in mind when designing the product, he contended. “I always say to my team, you can’t have a number of black jackets on the web. Tell me, how can a consumer differentiate them? You can’t touch the fabrics. The design must be digital first so that when you see it on mobile it gives an emotion.”
Ruffini admitted the company had “a good digital structure before, but it was a division. Now it must be part of the company, which must become digital, also throughout the supply chain, production, and processes. You can buy technology but the true difficulty is to change the culture and convince everyone.”
Asked if this new strategy will alter the stance on Moncler’s retail distribution, Ruffini said: “In terms of doors, we are fortunate compared with our competitors because we started later, and our 213 doors are strategically right, I believe. The physical experience is always important but we must change it and we must talk to our sales associates to create the right culture. It’s no longer only about the number of pieces sold, it’s more complicated. Omnichannel is the foundation, but unfortunately there is no help-book that you can write and send to stores, it’s a cultural change and we must transfer it to our regions and sales associates.”
He underscored that Europe and the U.S. should mirror China’s single platform, WeChat, integrating all the different platforms used now, from Facebook to Instagram. “We must learn from them, China represents around 15 percent of our sales, but at a cultural level we can only learn from them.”
Moncler Genius launches its new project once a year, in February, and Ruffini said it was too early to have a point of view on the presentation format. “We must be flexible.” He complimented how brands had recently shown their men’s or resort collections, either digitally or physically. “They respected the moment and consumers perceived it. Digital will be fundamental to consolidate the perception of the brand. Of course a collection must be beautiful, but it’s no longer only about that. It’s the creative project and the communication that count. Consumers expect something more and they have a different attitude. I don’t think we’ll see the crowds waiting for shows outside anymore. The values have changed.”
Ruffini noted that this “new approach requires a rapid organizational, cultural and technological revolution — not evolution — and opens us up to a future full of creativity and experimentation as well as interactions with our consumers on all social channels.”
To support this plan, Moncler has created a new “Digital, Engagement and Transformation” function, which will help implement the brand’s strategy across all digital channels, to create new services and experiences for consumers.
The strategy requires Moncler to be more in tune with local cultural details and to be able to execute in a timely manner. In China, for example, the company is strengthening its local digital team with specialist roles dedicated to the definition of a targeted strategy and to digital innovation and experimentation.
On- and off-line will coexist on Moncler’s omnichannel model built around a customer who follows nonlinear purchasing paths and who interacts with the brand in brick-and-mortar stores, as well as online and across social channels.
The new approach will allow Moncler to collaborate with other digital commerce channels.
As reported, the 7 Moncler Fragment Hiroshi Fujiwara collection was released on July 2 and the company developed a hybrid physical and digital strategy running through Japan, China and
Europe. The project blended different media, connecting e-tailers, partners and wholesalers, tailoring each activation to the regional culture. On Monday, Moncler revealed that the Weibo livestream for ►