From the beginning of its history, Moncler’s brand occupied a specific place in clothing for mountaineers and alpine athletes, providing them with unique features and technological advancements. However, in the late 1990s, the quality of produced clothes gradually decreased due to the relocation of company manufacture outside France (Sherman & Crump, 2019). Still, Moncler’s jackets “remained a niche product for alpine enthusiasts,” and their limited variety along with design setbacks prevented from increasing the market share and finding new customers (Kronauer, 2018). Therefore, the critical challenge for the company was to find the right segment for its goods, determine the correct target audience, and develop ways to attract clients. Being on the verge of bankruptcy, Moncler crucially needed the aforementioned changes, and its management understood the requirement for introducing modifications in all structural divisions.
- Products: Redesigning traditional highly-specialized garments for their increased popularity among the wider community
- Prospective purchasers: Extending the target audience from a narrow group of enthusiasts to a larger circle with “different customer bases, such as Millennial males or professional women” (Sherman & Crump, 2019, p. 6)
- Fashion shows: Replacing regular shows held every six months with more frequent events for creating continuous attention in the media
- Cooperation with designers: Introducing a new format, which would provide for increased collaboration without any restrictions on its length.
- Marketing: Shifting from semi-annual shows to monthly events. Preparation of various materials including “close-up shots, editorial videos, and video lookbooks” for every product release (Sherman & Crump, 2019, p. 7). Paying specific attention to digital media, expected to replace printed ones. Producing content adjusted to the target clients
- Retail stores: A shift from the traditional store structure to the one highly adjustable to client particularities and demographics. Providing stores with an opportunity to select products and communication channels based on regional preferences
- Logistics: Creating a precise logistical structure across the company ensuring timely supply of new products upon their release to retail stores. Expanding manufacturing capacities and enhancing “automation, artificial intelligence and quality control” (Sherman & Crump, 2019, p. 9)
- Corporate culture: Moving from independent operation of functional departments to collaboration, including suppliers and manufacturers. Creating a culture of empowerment and decentralized decision-making. Conducting regular events aimed at the generation of new ideas and their assessment by all employees.
Moncler’s overall strategy was based on redesigning their existing products, enhancing their range, and, subsequently, attracting new customers. Specific emphasis was placed on obtaining the necessary media coverage by increasing the use of digital communication channels and the latest network technologies. The transition to monthly product releases and their creation in collaboration with famous designers helped generate the desired variety of garments and increase brand awareness among various client groups. This was further supplemented by rearranging the retail facilities and providing local administrators with additional authorities regarding store layout, selected products, and communication channels. Finally, the strategy included a transformation of the corporate culture towards a less authoritative one and a refinement of the applied logistical media.
The strategy implementation was generally successful as it resulted in a significant and continuous increase in Moncler’s sales, exceeding $1 billion in the second half of 2018 (Sherman & Crump, 2019). An incredibly efficient tactic was the idea of creating media attention to the “Genius” products as half of their purchasers were first-time company clients. This has allowed reaching the goal of attracting Generation Z and Millenial shoppers, currently constituting forty percent of customers (Sherman & Crump, 2019). The primary setback is the failure to develop E-commerce, which accounts for over a third of all apparel sales in the United States during recent years (Berthene, 2020). Therefore, Moncler has successfully gone through profound transformations and should continue implementing its strategy adjusting it based on the latest technological advancements and market changes.
References
Berthen, A. (2020). Ecommerce is 38.6% of all apparel sales.Digital Commerce 360. Web.
Kronauer, A. (2018). Where Drake’s Favorite Jacket Came From. Leva Platform. Web.
Sherman, L., & Crump, H. (2019). Inside Moncler’s ‘Genius’ strategy. The Business of Fashion. Web.