Business Breakdowns
· Chris Davies, Matt Reustle
He is so important to this story. Now we've met a number of people around him over the years, some very impressive people like Luciano Santel, who is his right-hand man. Roberto Eggs, Gino Fisanò. There are lots of really impressive people who've come to Moncler from other really big brands over the years. It's a really deep bench, it's an experienced bench, but there is a kind of magic stardust to Ruffini and he is important and I think if he got hit by a bus tomorrow, I'd probably be quite worried. Fingers crossed, of course, he is in great health for many, many years to come. The question for us would be around succession. I think he said at the end of last year, I would love it if my sons would take over the business. And I think one of his sons actually does work at Stone Island. So it might happen at some point, but it's clearly a risk. He's important, he matters. He's a massive driving force. [00:00:00] S0: Key man. [00:00:00] S1: Yeah, exactly. It's key man risk. Exactly. [00:00:00] S0: Well, this has been fascinating. Diving into a new niche of the luxury market. We finish the conversations with the key lessons that you can take away—what stands out from Moncler as a key lesson that you might be able to apply elsewhere?
· Matt Reustle, Chris Davies
[00:00:00] S0: Well, this has been fascinating. Diving into a new niche of the luxury market. We finish the conversations with the key lessons that you can take away—what stands out from Moncler as a key lesson that you might be able to apply elsewhere? [00:00:00] S1: That's a great question, I think. Protect your brand. The brand should be basically at the center of everything you do. Every decision you make should be forcing you to ask yourself: what does this do to my brand? And this is what Ruffini is obsessed with. I remember seeing an advert actually at an airport recently, a different brand. It was a watch brand, Patek Philippe, and the tagline was something like, you merely look after it for the next generation. You never actually own it. I think that's true for all luxury brands. The stewardship is so important because you're passing this on to either the next generation of the family or at some point maybe professional management. And you've got to be absolutely sure that you've done everything to strengthen that brand, to avoid it being caught up in scandals, besmirched in some way. So that to me is one of the vital lessons here. It's being obsessed with the quality of the brand and being willing to actually not do things. What are the things that we are willing to give up in order to maintain the brand equity? Give you the example of Richemont buying back all of that inventory. They described it as an investment in the brand, not a loss.
· Chris Davies, Matt Reustle
[00:00:00] S1: That's a great question, I think. Protect your brand. The brand should be basically at the center of everything you do. Every decision you make should be forcing you to ask yourself: what does this do to my brand? And this is what Ruffini is obsessed with. I remember seeing an advert actually at an airport recently, a different brand. It was a watch brand, Patek Philippe, and the tagline was something like, you merely look after it for the next generation. You never actually own it. I think that's true for all luxury brands. The stewardship is so important because you're passing this on to either the next generation of the family or at some point maybe professional management. And you've got to be absolutely sure that you've done everything to strengthen that brand, to avoid it being caught up in scandals, besmirched in some way. So that to me is one of the vital lessons here. It's being obsessed with the quality of the brand and being willing to actually not do things. What are the things that we are willing to give up in order to maintain the brand equity? Give you the example of Richemont buying back all of that inventory. They described it as an investment in the brand, not a loss. [00:00:00] S0: I love it. It's a great lesson that certainly applies here and to the broader luxury market. This has been fascinating. Chris, thank you very much for joining us. [00:00:00] S1: Thank you, Matt. Cheers.