Luxury Ski-wear brand Moncler has acquired the high-end Streetwear brand Stone Island for £1.04 billion, yep that’s right 1.04 billion pounds! Marking Moncler’s first acquisition expansion strategy. Stone Island will be able to reach new international markets, benefiting from Moncler’s established customer base in the USA and Asia, where customer awareness for the European streetwear brand is significantly lacking. It has been estimated that Chinese consumers are expected to account for almost half of global luxury goods purchases by 2025. Therefore, it is essential for high-end brands to establish a customer base within China and other countries within Asia to maximise sales revenue streams; particularly after the detrimental effects the Coronavirus pandemic has had on the global economy and profit margins within the fashion sector. Although, both of the luxury Italian brands will remain individual entities, to ensure each brand’s identity and demographic remain the same. Stone Island is popular amongst Generation Z offering an athleisure/sportswear aesthetic, whereas Moncler is renowned for eclectic outerwear, puffer jackets have become synonymous with the Moncler brand identity since the brands reboot in 2003.
The Chairman and CEO of Moncler made the following statements regarding some of the reasoning behind the new acquisition: “We are coming together at a challenging moment both for Italy and the world, when everything seems uncertain and unpredictable…but I believe it is precisely in these moments that we need new energy and new inspiration to build our tomorrow.” “This is a partnership that represents a great opportunity for the continued development of both companies and which will help Stone Island accelerate its international growth thanks to Moncler’s experience in both the physical and digital retail world. “This is also an opportunity to share and grow for all the people of Moncler and Stone Island with whose contribution we will continue to write, together, a story of ingenuity, creativity and professionalism to honour Italy in the wider world”.
It will be exciting to see what direction both Stone Island and Moncler will go in following the new takeover, which is expected to come into fruition in the early months of 2021.