Warning: this is a long post. But if you’re interested in how emotional storytelling can create 10x more value than a focus on functional benefits alone… start reading. This is the story of Moncler - and how CEO Remo Ruffini created a brand worth $15 billion (and growing) by shifting the brand from a focus on technical specs to luxury aspiration.
High end coat brands Moncler and Canada Goose have a lot in common. Both were founded in the 1950s (Moncler in 1952 and Canada Goose in 1957), and both expanded with the help of private equity in the 2000s. Both companies later IPO’d within four years of each other, Moncler in 2013 and Canada Goose shortly after in 2017.
However, one brand is worth more than 10X as much as the other.
While Canada Goose has focused its brand on the technical features of its product (fabric innovations, associations with arctic temperatures), Moncler CEO Remo Ruffini focused on transforming Moncler into a luxury brand, turning a puffy coat into a fashion item on par with a Cartier bracelet or Hermès handbag.
Why chose luxury over technical superiority as your brand strategy?
For one, luxury allows you to charge much higher prices. No one will question if the technical aspects of a Chanel handbag warrant a 5K price. It costs that much because it’s Chanel.
Second, luxury brands are able to easily sell across categories by simply adding their logo. Moncler can sell consolation products like scarves and fragrances to customers who want access to the Moncler brand without investing $2,500+ in a coat. For Canada Goose, whose brand is more rooted in performance, the team must back up each accessory with technical features.
Finally, luxury drives repeat purchase. Do you need two highly technical, arctic-worthy Canada Goose ski jackets? Probably not. Do you need multiple luxury items? You wouldn’t want to be caught in the same Moncler outfit on two ski weekends…
To be fair, Canada Goose is successful in its own right. But in this Diary of a Brand — I want to focus on Ruffini’s Moncler — and what other brands can take away if they are looking to leverage luxury as their brand strategy.
How did Remo Ruffini turn a puffer coat into a luxury good?
Keep reading with a 7-day free trial
Subscribe to Embedded - Where Brand meets Marketing to keep reading this post and get 7 days of free access to the full post archives.