Down jacket industry: "Hermès" makes a splash in China

Author | Wang Xiaojuan

Editor | Zhou Zhiyu

Recently, the Shanghai Fashion Week that ignited the fashion circle has come to a close. The highlight of the entire event was the Moncler Genius 2024.

The event was attended by a number of well-known domestic and international celebrities, such as Anne Hathaway, Rihanna, and Cui Ranjun, as well as domestic celebrities like Shu Qi, Nicholas Tse, and Xu Bing.

This was Moncler's first major show in China and also the first time holding an exhibition outside of Europe. Prior to this, Moncler Genius had been held in Milan, Italy, and London, UK.

Through this fashion show, Moncler hopes to showcase its fashion DNA to Chinese consumers and gain their favor.

According to Remo Ruffini, Chairman and CEO of Moncler, "Chinese culture has always been the source of inspiration for Moncler."

Like many luxury brands, Moncler also has a long history. Founded in the 1950s in Grenoble, France, it initially gained recognition for its professional outdoor skiwear and down products.

However, over the next half century, Moncler struggled. It wasn't until 2003 when the near-bankrupt Moncler found its "white knight," Remo Ruffini, that it rose to become the "king of down jackets" in the world today.

Moncler has a long-standing relationship with the Chinese market. In 2009, Moncler opened its first boutique in China at the Plaza 66 in Shanghai, making it one of the first high-end down jacket brands to enter the Chinese market. Since then, Moncler has expanded its stores to mainstream consumer cities such as Beijing, Guangzhou, Shenzhen, and Xi'an.

Following the changing trends in Chinese consumer behavior, Moncler has also expanded its channels. In 2018, Moncler opened a pop-up store on Tmall, followed by launching its official website e-commerce and Tmall flagship store.

Entering China early, actively expanding channels, and deepening its presence in the Chinese market are all due to the optimistic outlook on the growth of the high-end consumer market in China. In Remo Ruffini's view, China is an extremely promising market, and Moncler is confident in the future of the Chinese market.

In the current relatively niche high-end consumer market, Moncler has also tapped into the recent trend of "Gorpcore," wearing outdoor clothing in non-outdoor sports settings. Functional clothing is no longer limited to outdoor sports but integrated into daily life, allowing Moncler to achieve greater growth.

Research from consultancy firm Coniel also suggests that in recent years, the fashion apparel industry has shown a trend of market slowdown, with low-speed growth becoming the new norm. In terms of pricing, the low-priced market is becoming more competitive, while the higher-priced market remains relatively stable.

Moncler's stability is already reflected in its performance.

The financial report for the first half of 2024 shows that Moncler Group's comprehensive revenue increased by 8% year-on-year, reaching 12.302 billion euros, with net profit growing by over 20% year-on-year to reach 1.807 billion euros It is worth mentioning that, looking at the performance in various regions, the Asian market's revenue accounts for nearly half of the total revenue, reaching 513 million euros, a year-on-year increase of 19%, leading all regions.

Moncler revealed that much of the growth in the Asian region is contributed by the Chinese market, prompting the group to accelerate its expansion in the Chinese market. Moncler expects that by 2025, over 50% of Moncler's revenue growth will come from China and the United States.

Of course, the competition in the Chinese market is fierce, which presents both opportunities and challenges for Moncler.

Cole Smead, CEO of one of Canada Goose's shareholders, Smead Capital, believes that in the Chinese market, demand for traditional and well-known luxury goods has peaked, making "new products" more likely to achieve growth among consumers.

Both Moncler and Canada Goose are examples of this. Especially since they operate in the same niche market, the competition is even more intense.

According to Canada Goose's financial report for the first quarter of the 2025 fiscal year, for the period from March 1, 2024, to June 30, 2024, Canada Goose's revenue increased by 3.9% year-on-year to 88.1 million Canadian dollars, with mainland China sales increasing by 10.8% year-on-year at fixed exchange rates.

CEO Dani Reiss stated at the performance meeting, "The performance in mainland China was the highlight of this quarter." Greater China has always been Canada Goose's largest market, with a total of 80 stores globally, including 31 in China.

Furthermore, there are also competitors from China's domestic market. For example, BOSIDENG, a brand with high visibility in the Chinese market, is also moving towards the high-end market.

Recently, BOSIDENG announced a strategic partnership with the Canadian luxury down jacket brand Moose Knuckles and has acquired over 30% of the latter's shares.

For the Chinese market, Moose Knuckles is also a new brand, with some stores already in China and plans to open more.

In addition, many outdoor brands that previously focused on outdoor activities have launched products combining down jackets and windbreakers under the influence of the "Gorpcore" trend to grab a share of the down jacket market.

For example, Arc'teryx has become a favorite among many middle-class men; and the down jackets from the outdoor lifestyle brand KOLON, also under Anta, were highly sought after by many middle-class consumers last winter and became one of the fastest-growing brands in the group this year.

To tap into the Chinese market, Moncler also needs to leverage its strengths, align with the consumption trends in the target market, and introduce products that give users a sense of novelty in order to sustain growth