Can Moncler Diversify Like Burberry?

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Dec. 16 (Bloomberg) -- Allegra Perry, Managing Director of Luxury Goods at Cantor Fitzgerald Europe, discusses the performance of the Moncler IPO and the opportunities the company has to expand. She speaks on Bloomberg Television’s “On The Move.” (Source: Bloomberg)


I think it underlines the extent to which luxury brands are valued today because at the end of the day there are few of them that have the heritage and credibility and authority to build that up.

Obviously this is a brand with 60 plus years of heritage and has a distinctive niche and is very specialized and outerwear.

It is clearly the dominant player in that area.

I think as we have seen with the last few ipos in italy, that tends to be demand for these brands because aren't that many around.

It is something about heritage.

At the same time, it is outerwear.

How do you diversify?

Moncler is associated with skiing.

If you're going to grow brand, needs to be more than ski wear.

That his right.

On the one hand that is a big positive.

It does raise the issue of how to diversify from that core category which is 75% of sales.

If you look at what they have done over the last three years, the brand has really evolved.

It is a credit to this management team for injecting more fashion and evolve that category away from strictly ski wear.

Now it is seen more as an accessory.

I think it does create a challenge.

Clearly the most profitable highest return categories are leather goods and shoes.

I think to go from that category of outerwear into those categories requires time and investment heard it is not always successful or the most complementary category.

I think are very springs to mind when i think of moncler.

-- i think of burberry when i think of moncler.

It is definitely doable.

There's a challenge ahead but there is a huge opportunity for this brand beyond diversifying its categories am also in terms of its regional mix.

They still sell a lot to europe.

Is amazing to see the breakdown in sales of how much actually goes to a domestically.

Over 50% of sales are in europe, within which most of that is in italy.

I think to some extent that gives you an idea of the opportunity that this brand has to continue to internationalize.

The store count is in line with its regional mix.

There's a huge opportunity given that there are only six stores in america's and only 36 stores in asia.

Overall with only 100 stores globally, think about the likes ofburberry.

There's a huge opportunity to expand the on the market and gain traction and presents another markets which can be more profitable very will this really become the nextburberry?

It has an absolute transformation.

They don't only have trenchcoats but they have shoes and bags and all the accessories.

Can moncler diversify as much without losing its identity?

It is a challenge.

It will have to remember its core because customers gravitate to brands for what they're very good at it i think it is doable but i think it has to be done gradually.

We they talked about that in the ipo perspective.

I think it is a question of how it is managed and executed.

If you have more control over distribution, that becomes a little more easy because you have to control merchandising and sell it all as a complete package.

I think it is doable, but it is not going to change overnight.

That outerwear court will remain elevated for some time.

When he started the conversation, you told me it is great because moncler owns this key were . are these the brands that will do better than others because he knew exactly what you're buying into?

If you look in the last few years where we have had a crisis or there's been subdued growth, what you have seen is all the brands outperforming the core categories.

I think this illustrates the extent to which consumers still see) for their core categories and what they are known for.

I would expect that to be the case and that is why it is going to take time for outerwear to come down as a percentage of sales.

I think they have all the steps in place.

There've a great foundation.

It seems like a great management team as well.

There've all the steps they need and all of foundation work in place in order to raise this rant to the next level third allegra perry, managing director at cantor fitzgerald.

Coming up, the world's biggest social network is among a number of companies planning to use facial recognition to tailor pick you.

This text has been automatically generated. It may not be 100% accurate.


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