The luxury goods sector is currently brimming with annual performance reports, revealing a distinct divide between success and struggle among various brandsRecently, Kering Group published its financials, which highlighted declining performance across multiple brandsIn stark contrast, Moncler, dubbed “The Hermès of Down Jackets,” continues to show remarkable growth even amid a turbulent market landscape.

Moncler Group recently unveiled its impressive fiscal report for 2024, announcing consolidated revenues reaching €3.1089 billion, a 7% increase from 2023. The flagship Moncler brand, known for its high-end down jackets, brought in €2.7073 billion, while the subsidiary Stone Island, recognized for its innovative fabric manufacturing, contributed an additional €401.6 million to the total.

Of particular significance is the performance of Moncler in Asia, which is notably robust, accounting for nearly half of the group's overall revenueThe mainland Chinese market, in particular, experienced double-digit growth, further solidifying its status as a primary engine of expansionThis data illustrates a clear sentiment: Chinese consumers have not lost their appetite for luxury goods.

In the past few years, many companies attributed sluggish growth to increasingly cautious behaviors exhibited by Chinese consumersHowever, the steady upswing seen in luxury brands like Hermès, the lines of eager shoppers at “The Golden Hermès” Lao Pu jewelry, and the rising popularity of Moncler all suggest that consumer desire hasn't diminished—it's simply evolved.

Since the start of 2024, Moncler has made a concerted effort to deepen its roots in the Chinese marketDuring the Lunar New Year, Moncler introduced a limited edition down jacket that cleverly merged traditional elements with avant-garde design, prompting a significant buzz on social media platforms.

At the 2024 Shanghai Fashion Week, Moncler Genius 2024 marked an extraordinary occasion as it hosted the event's “closed-door show,” attracting international superstars like Anne Hathaway, Rihanna, and local stars such as Shu Qi, Nicholas Tse, and Xu Bing

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This was a groundbreaking achievement for Moncler, being its first major show in China and its first outside of Europe where it had previously staged events in Milan and London.

The showcase brilliantly fused art, technology, and fashion to create an “unrepeatable experience,” fulfilling the consumer's quest for uniqueness while reinforcing Moncler's image as “The Hermès of Down Jackets.” Through this spectacular fashion event, Moncler aimed to present its stylistic essence to the Chinese audience, aspiring to capture their affection.

Moncler's journey in China dates back to 2009 when it opened its inaugural boutique at Plaza 66 in Shanghai, setting the stage for luxury down jackets in the Chinese marketSince then, the brand has expanded its footprint to major cities including Beijing, Guangzhou, Shenzhen, and Xi’an, strategically tapping into key metropolitan areas.

The brand has adeptly navigated shifts in consumer behavior, timely adapting its channelsIn 2018, Moncler embraced e-commerce by launching a pop-up shop on Tmall, subsequently expanding through its official website and Tmall flagship storeThis was followed by a rapid increase in store openings, targeting both first-tier and new-tier city hubs.

Online, Moncler offers value-added services such as virtual fitting experiences and dedicated customer service through mini-programs, with online sales accounting for 25% of revenue in 2024. Additionally, aimed at high-net-worth clients, Moncler has instituted VIP salon events and bespoke services to strengthen customer loyalty.

Moncler's proactive entrance into China and its tactical channel expansion reflect the company’s confidence in the growth of China’s premium consumer marketRemo Ruffini, Moncler's Chairman and CEO, has articulated a bullish outlook on the Chinese market, considering it to be replete with opportunity.

Positioned in a relatively niche market for high-end consumer goods, Moncler also aligns itself with the rising trend of “Gorpcore,” where outdoor apparel crosses into everyday fashion, thus positioning itself for an upward trajectory

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Yet, the competition in the high-end down jacket sector remains fiercely competitive.

Presently, the mid-to-premium down jacket market in China is characterized by an “international brand dominance with local brand emergence” dichotomyTo carve out a niche in this crowded space, differentiation remains keyInternational players like Canada Goose champion polar functionality, yet their growth has slowed due to limited designs and pricing controversiesThe North Face has tapped into fashion collaborations to streamline trends but struggles with brand recognition in the high-end segmentMeanwhile, local brand Bosideng has captured the mass market, reporting revenues exceeding ¥20 billion in 2024 through a strategy that balances national pride with affordability, although their high-end lines have yet to gain traction.

Against this backdrop, Moncler's growth underscores its established position in the high-end down jacket marketHowever, it faces challenges from emerging niche brands and cross-sector competitorsFrench brand Mr & Mrs Italy, known for its fur-trimmed design, and Italian brand Herno, which emphasizes minimalism, are both intensifying their focus on the Asian marketFurthermore, luxurious brands like Louis Vuitton and Dior are entering the high-priced down jacket market, further fragmenting market sharesAdditionally, many outdoor brands within China are pursuing the down jacket segment and have garnered considerable consumer recognition.

As a luxury player in the down jacket sector, Moncler must continue to leverage its competitive advantages while consistently innovating to capture consumer interestFor instance, the brand has recently launched the “Extra Light” collection in response to consumer demand for lightweight and warmth attributes while exploring bio-based down alternatives and smart thermal technology.

By effectively marrying precise brand positioning, localized strategies, and channel enhancements, Moncler has achieved noteworthy growth in China, defying trends

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