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For Moncler, quality has always been and will continue to be a priority. There can be no compromise in the pursuit of excellence: from the choice of the finest materials, through the precise manufacture of its garments, to the selection of the best suppliers that are trained and supported by specialised experts. Product quality and safety are at the centre of Moncler’s focus. For this reason, Moncler implements stringent controls along the entire value chain. All Moncler products are designed and manufactured under the Company’s direct and close supervision. The Group manages the creative stage, the development of prototypes, and the purchase of raw materials (including accessory components) internally, while it closely oversees the manufacture of the final products at its production site in Romania or outsourced to external suppliers. Quality and safety are priorities for the Group right from the phase of designing garments and purchasing raw materials. The quality of the down and nylon, but also the raw materials used, is crucial to guarantee the excellence of the final product. For this reason, Moncler selects its suppliers very carefully, and constantly subjects all materials to strict tests to identify their composition and physical and mechanical features, which are essential to ensure the desired technical performance. Moncler contractually requires all its production partners to perform in full compliance with the most stringent international regulations relating to hazardous and potentially hazardous chemical substances, including the European

Union’s REACH 1 regulation, China’s GB 2 standards, and the Japanese JIS 3 standards. Suppliers are also bound to comply with the company instructions in the Product Restricted Substances List (PRSL), which defines the parameters and limits to be respected for chemical substances, and those of the “Manual of performances” for physical-mechanical performance requirements. In relation to the use of chemical substances, Moncler requires partners to go beyond the legal requirements, by including its own standards in the PRSL which, for certain groups of substances, are more stringent than those imposed by international regulations. For the supplier and/or Moncler itself to verify compliance with the guidelines contained in the PRSL and in the Manual of performances, tests are carried out in independent specialised laboratories. The accessory components used in production undergo additional testing to ensure their technical compatibility with fabrics and garment care (e.g., their reaction with washing detergents). Fabrics are tested for their physical-mechanical properties, such as resistance to water, pilling, colour fastness, seam slippage, tearing strength, breathability, etc. Moncler accepts no compromise when it comes to safety and quality. If materials do not pass the required tests, the purchasing process is suspended until the supplier can demonstrate it is able to deliver a product that fully complies with all requirements.

Before selecting a production supplier, the experts from Moncler’s quality assurance

division will first verify that the potential partner has the technological capacity and is adequately equipped to produce garments that meet all the standards required by the Brand, and that it can ensure consistent and reliable levels of quality. The experts will then perform weekly checks to verify the progress of the supply process and compliance with the required product quality standards.

Before starting the production process, each model undergoes a series of fittings to verify every detail and consistency with design and model specifications, and to ensure maximum comfort and wearability. Finally, prior to sale, all garments produced are regularly subjected to a final stringent quality inspection. This inspection, with a structured and recorded process, checks and guarantees the aesthetic detail, characteristics, sizing, labelling and functionality of each garment. In this final stage, the anti-counterfeiting protocol is checked and activated using sophisticated latest-generation technology.

From 2018, through major investments in technology, Moncler began to expand its Piacenza hub where, in addition to logistics activities, other services, including quality control of the finished product and after-sales service, are carried out. The expansion of the facility is part of an important project that the company implemented in order to be faster and more efficient in terms of time-to-market and service to clients.

NOTE

1 Registration, Evaluation, Authorisation and Restriction of Chemicals.

2 National Standard of the People’s Republic of China.

3 Japanese Industrial Standards.

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