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35 bOaRD OF DIREcTORS REPORT34 MONCLER GROUP 2022bOaRD OF DIREcTORS REPORT

MONcLER DIGITaL The Group has always been looking for new ways to communicate with its consumer base and interact with new and existing commu- nities. In 2022 Moncler further accelerated its digital transforma- tion by leveraging its new business organisation and finalising the internalization of the e-commerce activities.

The goal is for every project, from the design of collections to product development or even event construction, to be digital na- tive, to be designed with digital platforms as the first point of con- tact with clients to then be spread across all other channels. This new approach opened the door to a future full of creativity, experi- mentation and contamination between content and channels.

The new Digital, Engagement and Transformation function was created in July 2020 to support the evolution of Moncler s strategic vision and create new digital opportunities for the Group. The func- tion defined and implemented the brand s strategy across all digital channels and spread the digital culture throughout the whole organi- sation, overseeing the five strategic pillars: D-Commerce, D-Market ing, Consumer Engagement, D-Intelligence and D-Operations.

D-Commerce aims at defining innovative and unique solu- tions for handling the online business and mainly deals with buying and merchandising management.

D-Marketing is involved in the creation of digital first content, aiming at accelerating the consumer reach, and also assisting in in- creasing client engagement and conversion. Several projects were developed in 2022 to increase the impact of social media, in-store traffic and media campaign performance. a notable example is the launch of Moncler curators , a new section on moncler.com that invites the most lively personalities in the worlds of sport, fashion, business and entertainment to curate their own personal Moncler product selection.

D-Intelligence identifies strategic growth levers through the analysis and management of qualitative and quantitative data to maximize the knowledge and behaviour of omnichannel clients, identify demand for new trends and products thus improving the client experience.

D-Operations, aimed at running all digital and omnichannel op- erations, among which the personalisation service Moncler by Me .

Consumer Engagement is a department aimed at improv- ing the understanding of, and connection with, the brand s current and future clients, while developing a new Loyalty Program, which will include exclusive benefits for the clients most loyal to the Mon- cler brand.

Significant energy in terms of resources and investment have been devoted to the development of the digital functions. From dig- ital marketing to online advertising, to services, to cRM, to new platforms and social networks, the company is now benefiting from a leading set of new technical infrastructures, processes and a strong digital organization.

In particular, Moncler is present on the following social me- dia platforms: Instagram, Facebook, Twitter, YouTube, LinkedIn, Tik- Tok; in china on Wechat, Weibo, Douyin and RED; in Japan on LINE while in Korea on Kakao Talk.

STONE ISLaND bRaND

STONE ISLaND cOLLEcTIONS at the forefront of menswear, Stone Island redefines, with its point of view, the concept of man luxe, always contemporary and with a strong tendency to research and experimentation.

The brand is characterised by its different iconic visual codes. Stone Island expresses itself not only through the usage of its atypi- cal branding, the badge , a removable rectangular label that exhibits the embroidery of the Stone Island compass, but also, for the wide exploration of colour, with unique treatments and techniques, finish- es and details of the garments, and for its unique design lexicon.

alongside Stone Island men collections, the brand offers the Stone Island Junior collection a declination of the brand for chil- dren and teenagers from 2 to 14 years old.

STONE ISLaND RESEaRcH aND DEVELOPMENT Four decades dedicated to textile research, experimentation, study of the garment s function and innovation, often investigating worlds far from clothing, have made Stone Island a brand defined by its unique and distinctive research and an essential point of reference for the world of apparel and design today.

Important challenges faced also thanks to the commitment of the creative team, who managed to transfer its vision into the product, with passion and enthusiasm, pushing its research efforts on uncharted territories.

STONE ISLaND PRODUcTION The complete product development cycle is managed internally, at its headquarter in Ravarino (province of Modena). Stone Island s mission has always been to pursue product innova- tion through continuous deployment of know-how and all-around research on fibres, yarns, fabrics, finishes and dye whilst cultivating the ambition to offer a product that is unique in its category.

In order to achieve this mission, product development has been carefully managed through an internal and integrated system in which modelling, prototypes and dyeing combine with estab- lished external partnerships in both research and execution.

The value chain when it comes to the selection of ancillary materials and components, as well as to manufacture and dyeing is managed under the strict supervision of company technicians at established partners that are aligned with the company s ethical and regulatory codes.

Fabrics and yarns are supplied by the best Italian and foreign companies, in particular in Japan and Korea.

Manufacturing is in Italy, in the Mediterranean basin and in the Far East, at established third-party companies trained in the know-how needed to satisfy the brand s standards of quality and sustainability.

STONE ISLaND DISTRIbUTION The Stone Island brand is distributed globally both through the wholesale channel and with direct presence (retail stores). Further- more, in some markets the brand is managed by distribution con- tracts with qualified and long-standing partners, selected on the basis of their high knowledge of the fashion sector. The brand is currently present in the most important department stores in the world, also with dedicated spaces (shop-in-shops), in the best multi-brand boutiques and in the main e-tailers, besides having de- veloped a network of 72 directly managed mono-brand stores as well as the online store.

In line with the Group s strategy aimed at the integrated de- velopment of its distribution channels, Stone Island has begun a path that will lead the brand to a greater control of distribution on international markets, through a progressive direct management of the markets currently managed by distributors and through the ex- pansion of the DTc channel. Indeed, since 1 January 2022 Stone Island internalised the management of Korea and since 1 august the management of Japan through two joint ventures controlled by Stone Island. In the UK the implementation of this strategy led to the internalisation of the DTc business, composed at the moment of the store in London and the e-commerce.

at the same time, the company is enhancing its control and doors selection in the wholesale segment, a channel of strategic

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