Supply chain profile

A quality product is the result of shared standards, cooperation, joint efforts and stable relationships based on trust with all supply chain partners. The Group believes in the importance of developing ever closer and more profitable synergies and partnerships with those who not only guarantee reliability in production performance, but also share the company’s values and expectations in terms of ethical, environmental and social standards.

In 2024, a total of 589¹ suppliers were involved in the production of Moncler and Stone Island products, divided into raw material suppliers, façon manufacturers, finished products suppliers and service providers.

Raw material suppliers primarily provide fabrics, yarns, down, leather and production accessories (buttons, zippers, ribbons, elastics, etc.). Fabrics mainly come from Italy, Japan, South Korea, China and France. Suppliers of yarn and production accessories are mainly Italian, while the down suppliers are European, North American and Asian.

Façon manufacturers are suppliers that employ workers with strong technical expertise to which the Group entrusts the production of finished products or intermediate phases of processing (dying, embroidery, etc.), while providing them with all the raw materials needed. This category includes dye houses that perform garment-dyeing, to which Stone Island directly entrusts this process in Italy. The entire manufacturing process is carefully monitored by Group technicians who verify its compliance with the required standards through rigorous, ongoing field audits. In particular, through this process outerwear, trousers, skirts, dresses, all tricot knitwear and some cut-and-sewn knitwear are produced.
Façon manufacturers are mainly located in Italy and Eastern Europe, areas where long manufacturing tradition guarantees very strong technical expertise and adequate production capacity. In particular, Italy is characterised by a strong expertise in very complex and unusual processes.

Finished products suppliers are suppliers whose workers, having received the technical design of the products, are responsible for the creation of the garment, including the raw materials sourcing phase, according to the Group standards; in addition, Moncler directly provides its finished products suppliers with some key raw materials such as down, nylon and logoed materials. During garment production there is constant interaction between the supplier and the Group experts, who make on-site visits and scrupulously supervise the process, to ensure that the final product meets the expected high level of quality. Some cut-and-sewn knitwear (mainly t-shirts and polo shirts), some soft accessories (such as hats and gloves), shoes and bags, and small leather goods are mainly produced in this way. In particular, suppliers of cut-and-sewn knitwear are based in Europe and Türkiye; shoes are made by suppliers in Asia and bags and small leather goods are made by European suppliers, mainly Italian.
Service providers support the Moncler Group in its pattern making, prototyping and quality control processes and are mainly based near its corporate sites.

As for indirect suppliers, they are partners that provide goods and services not directly related to product manufacturing. This category includes construction companies and security, cleaning, porterage and maintenance, logistics and consulting services.

The majority of suppliers (approximately 90%) are located² in the EMEA Region, primarily in Italy. The Group distributes its purchasing expenditure, so as to avoid situations of dependence on its suppliers that could represent a risk for the business. In terms of supplier concentration, the top 40 suppliers account for more than 50% of the value of orders. The Group is committed to closely monitoring the concentration level and promptly identifying any critical situations that could compromise the continuity of supply. In this context, the Group takes measures to mitigate these risks and, where possible, favours the use of local suppliers located close to the main sites. This approach not only allows for logistical advantages but also contributes to reducing greenhouse gas (GHG) emissions, while generating income and creating job opportunities in the communities where the Group is actively present.

A key element of the supplier management model is the identification of “critical suppliers“, who are involved in targeted actions and initiatives. This identification process is based on a risk-based approach that considers, in addition to their importance to the Group in terms of the economic value of the orders commissioned, quality, delivery times, financial dependence of the supplier, the Group’s ability to ensure the supply of goods and services in case of needing to replace a supplier in a short time, and specific sustainability parameters, including: the potential human rights risk in the country of reference, the supply of key raw materials or the supply of strategic processes for the Group, with a particular attention to raw materials of animal origin or associated with certain social or environmental impacts.

Finally, since 2022, a screening is conducted by qualified, experienced third parties to identify possible cases or signs of conflict of interest on all Group suppliers, including critical suppliers.
To date, the majority of workers of the Group’s “critical suppliers” are women (approximately 72%), and the percentage of migrant workers is around 4%.