Moncler Group | Annual Report 2024 Board of Directors’ Report 42 Moncler Group | Annual Report 2024 Board of Directors’ Report 43

Moncler Group’s integrated and f lexible business model is

geared towards having direct control of the phases adding

the greatest value, putting the pursuit of ever-increasing quality

and the satisfaction of consumers at the heart of all its work.

Moncler brand

Moncler — Collections

Moncler’s success is based on a unique brand strategy aimed

at developing innovative products that are strongly “anchored”

to the history of the brand. The journey, which began

in 2003 when Remo Ruf f ini acquired the company, has always

been coherent and pursued without compromise. Heritage,

uniqueness, quality, creativity and innovation are the terms used

in Moncler to def ine the concept of “luxury”.

The Moncler collections are divided into three

parallel dimensions: Moncler Collections, Moncler Grenoble

and Moncler Genius.

The Moncler Men's, Women's and Enfant Collections were

born from the search for shapes and functionality, innovation

of materials and details with constant attention to the elevation

of the collection in all its categories, expressing the brand’s

DNA to respond to the multiple needs of the global

and local customers.

In Moncler Grenoble, the brand's DNA is even stronger and

more def ined. Moncler Grenoble has become a technology

and style innovation lab, enriched with luxury-mountain lifestyle

elements, celebrating the glamorous f lair of the Alps, for

the sporty consumer with an interest in performance, design

and innovation. The Moncler Grenoble Fall-Winter collections

are split into High Performance, products guaranteeing maximum

performance, Performance & Style, for the sporty consumer

who also cares about design, and Après-Ski, for the consumer

who is looking for style with a sporting edge. Day-namic

is the Spring-Summer outdoor collection developed in the name

of functionality and style.

Moncler Genius collections express creativity in its highest

form by bringing together dif ferent interpretations and visions

of the brand by talented cocreators who contribute to reaching

new communities and generating new creative energy while

always remaining true to the brands uniqueness

Transversal to the three brands dimensions the footwear

collection with the launch in September 2022 of the new family

of Trailgrip products takes on an increasingly signif icant

role in the brands product of fering being developed taking into

consideration not only the brand codes but also dif ferent potential

usages The Moncler collections are completed by the of fering

of bags backpacks accessories and eyewear in addition

to the perfumes introduced at the end of 2021

Moncler’s team of fashion designers is divided by collection

and works under the close supervision of Remo Ruf f ini, who sets

design guidelines and oversees their consistent implementation

across all collections and product categories. The Moncler Style

Department is assisted by the Merchandising and Product

Development teams, which help create the collections and

“transform” the designers' creative ideas into f inal products.

Moncler — Production

Moncler’s products are designed, manufactured and distributed

according to a business model featuring direct control

of all phases where the greatest value is added.

Moncler directly manages the creative phase, the purchase

of raw materials, as well as the development of prototypes.

The two main product categories, outerwear and knitwear, are

partly managed internally and partly assigned to third party

manufacturers (façon manufacturers) that take care of

the “cut-make-trim” phase, while for accessories and shoes

Moncler uses third parties manufacturers.

The purchase of raw materials is one of the main areas

of the value chain. All raw materials must comply with

the highest qualitative standards in the industry, be innovative

and able to of fer advanced functional and aesthetic features.

Moncler only buys the best white goose down from Europe,

North America and Asia. While textiles and garment accessories

(buttons, zips, etc.) are purchased mainly in Italy and Japan.

Moncler currently uses more than 360 suppliers of raw

materials: the top 50 suppliers account for approximately

80% of the value of suppliers.

The “cut-make-trim” phase is conducted both by third

party manufacturers (façon manufacturers) and in the Moncler

manufacturing plant in Trebaseleghe (Padua) and in the plant

in Romania that currently employs more than 2,000 people.

The hub in Romania was established in 2015, then was moved

in 2016 to its current location, which has been expanded

in 2022 to signif icantly increase its production capacity.

Investments in RD also continue to automate some stages

of outerwear production reducing processing times

In 2024 a new production plant was inaugurated in the Veneto

region of Italy dedicated to the production of knitwear now

the second most signif icant product category in terms

of contribution to revenues With this addition Moncler aims

to progressively increase the share of this business managed

internally further enhancing control over quality and sustainability

across the value chain

The thirdparty suppliers façon manufacturers working

for Moncler are mainly located in Eastern European countries

which are currently able to ensure quality standards that are

among the highest in the world for the production of down jackets

Moncler oversees these suppliers directly by conducting

Business model

audits

designed to check aspects related to product quality,

brand protection and compliance with current laws, Moncler

Code of Ethics (updated in 2017) and the Supplier Code

of Conduct (approved in 2016). For the production, the brand

uses 130 suppliers, split between façon and f inished products

manufacturers: the f irst 30 suppliers cover about 80%

of the value of supply4.

Down

Throughout its history, down has been at the heart of Moncler

outerwear, and has gradually come to be identif ied with

the brand itself.

A combination of lengthy experience and continuous research

and development has enabled the company to gain unique

expertise in this area, both in terms of knowledge of down as raw

material and in terms of garment manufacturing process.

Moncler ensures that all its suppliers comply with the highest

quality standards. Over the years, these standards have been

— and indeed remain — a key point of product dif ferentiation:

only the best f ine white goose down is used in the brand’s garments.

Fine-down content and f ill power are the main indicators

of down quality. Moncler down contains at least 90% f ine-down

and boasts a f ill power equal to or greater than 710 (cubic

inches per 30 grams of down), resulting in a warm, soft, light

and uniquely comfortable garment.

Each batch of down is subjected to a two-step checking

procedure to assess its compliance with 11 key parameters,

set in accordance with the strictest international standards

and the stringent quality requirements imposed by the Company.

In 2024, more than 1,200 tests were performed.

But for the Company, “quality” is more than this: the origin

of its down and the respect for animal welfare are also

fundamental for Moncler. When sourcing and purchasing raw

materials, Moncler considers these aspects as important

as the quality of the material itself. Since 2016, all Moncler

down is certif ied with the DIST internal protocol.

(Please refer to dist.moncler.com)

Moncler — Distribution

Moncler is present in all major markets both through the retail

channel, consisting of directly operated stores (DOS5),

the online store and the e-concessions, and through the wholesale

channel, represented by multi-brand doors, shop-in-shops

in luxury department stores, airport locations and online luxury

multi-brand retailers (e-tailers).

Moncler’s strategy is aimed at the control of the distribution

channel, not only retail but also wholesale and digital, which

is operated through a direct organisation.

As of 31 December 2024, the network of Moncler

mono-brand boutiques counted 286 directly operated stores

(DOS), a net increase of 1 unit compared with 30 September

2024 and of 14 units compared with 31 December 2023.

Amongst the most important stores opened in the fourth quarter

are New Bond Street in London and Boca Raton in Florida.

The Moncler brand also operated 56 wholesale shop-in-shops

(SiS), a net decrease of 1 unit compared with 31 December 2023.

4

Based on Orders Value

5

Including free standing stores

concessions travel retail stores

and factory outlets

MONCLER 31/12/2024 31/12/2023 Net openings 2024

Asia 143 132 11

EMEA 96 95 1

Americas 47 45 2

RETAIL 286 272 14

WHOLESALE 56 571