Moncler China'S Market Growth Leads The Global Cautious Strategy Helps It?

Recently, Italian luxury brand Moncler released its financial report for the first half of 2019. During the reporting period, its revenue increased by 16% year on year. China's market growth rate has led the world and has become the largest market for brands. It is worth noting that since its entry into the Chinese market in 2009, MLR has maintained a cautious attitude towards development for a long time.

According to the announcement, as of June 30 this year, the revenue of Mykal had reached 570.2 million euros, up 16% year on year (13% at constant exchange rate); Adjusted EBITDA was 143.6 million euros, up 16% year on year, higher than the previous estimate of 139 million euros.

In terms of regions, the Italian revenue of Moncler increased by 8% year on year, reaching 68.4 million euros, accounting for 12% of the total revenue. It is worth noting that Asia has the largest growth rate. In the first half of this year, the revenue was 249 million euros, up 18% year on year, accounting for 43.7% of the total revenue. Robert, COO of MLA Eggs said that the Chinese market demand is relatively strong, the growth rate leads the world, and has become the largest market for brands. At the same time, Robert Eggs stressed that the second half of the year, especially the shopping season from September to the end of the year, will be a critical moment for brand sales.

From the perspective of channels, the revenue of the retail distribution channel of Mykal increased by 16% year on year, reaching 437.1 million euros; The revenue of wholesale channels increased by 14% year-on-year to 133.2 million euros. This is mainly due to the strong performance of the newly opened store in store and airport channels. As of the end of June, MLA has operated 196 independent direct stores, with a net increase of three stores in the first half of the year. Among them, Merck Lai added four stores in Asia, while Italy and EMEA (Europe, the Middle East and Africa) closed one store respectively, and the wholesale channel added five single brand stores.

In fact, the performance of MLA in the Chinese market has been growing in recent years. Last year's annual report showed that China's market performance has exceeded that of Japan and led the Asian market. Because of this, Merck Lai attaches great importance to the development of the Chinese market. Last year, Moncler released a series of products on China's official website for many times. In September, it also opened an 18 day flash store on Tmall to sell "Moncler Six designer collaboration series in the Genius project. In addition, Moncler is also deeply concerned about the communication between WeChat and consumers, aiming to connect the official online store and WeChat, and build a unique and innovative digital service platform of Moncler in China.

In order to cater to the Chinese market, in January of this year, Moncler launched a special limited series, which echoes the traditional Chinese festival atmosphere and endows the brand's classic design with oriental classical temperament. Remo, Chairman and CEO of Mykolai Ruffini said that the establishment of Tmall Flash Store and the introduction of series of products with oriental design style by Moncler will help to refresh Chinese consumers' understanding of the brand.

It is worth noting that compared with the competitor Canada Goose)， The development of MLA is relatively cautious. In May last year, Canada Goose announced its entry into the Chinese market. In addition to the Greater China headquarters, it also opened two flagship stores in Beijing Sanlitun Taikouri and Hong Kong IFC. In September last year, Canada Goose officially entered the Tmall platform. The reporter of China Business Daily learned that as early as 2009, Mylar had entered the Chinese market and opened its first flagship store in Shanghai. Three years later, in 2012, the official website of Mylar in China was officially launched.

Relevant experts from China Down Industry Association told reporters that after entering the Chinese market, MLA has always maintained a cautious attitude towards development, which is reasonable, of course. In recent years, the down jacket market in China has developed rapidly, but the consumption has changed rapidly. If foreign brands want to gain a firm foothold in China's down jacket market, they should combine with local characteristics. In recent years, MLR has not only to deal with international brands such as Canada Goose, but also to compete with growing domestic down jacket brands. A relatively cautious development strategy is conducive to reducing business risks and maintaining a long-term growth trend.