|MCM chief visionary officer Kim Sung-joo on Thursday speaks to the press at the MCM Kunsthalle in southern Seoul. (Park Hyun-koo/The Korea Herald)|
Kim Sung-joo, chief visionary officer of global fashion brand Modern Creation Munchen, said Thursday that the company aims to generate 2 trillion won ($1.98 billion) in sales by 2020 to become one of the world’s most powerful fashion houses.
Declaring that the Seoul-based company would launch a “new school of luxury,” Kim said MCM would put out all the stops to go beyond being just a fashion brand and become a part of people’s lifestyles.
“We plan on becoming a corporate nomad operating more than 450 outlets around the world by 2020 from the current 300, which would push up our global sales to 2 trillion won from the current 700 billion won,” she said.
“More people are traveling. They are also working at different places using cloud services. They refuse to be stereotyped, and feel more comfortable just the way they are. MCM’s best-selling backpack was inspired by such a lifestyle. And I believe this nomad trend will become stronger,” Kim said.
The executive also indicated that she would shift the brand’s market positioning to “luxury” from “premium.”
To this end, the company has stopped issuing licensing contracts, and it is shutting down stores seen as going against the larger goal of becoming more high-end.
MCM said it would increasingly defined as a young but sophisticated brand.
“Our strategy has worked,” Kim said, noting that in China, MCM booths are located next to global luxury brands Chanel and Prada.
“MCM is a brand that has cultivated a strong following for becoming a hit in Europe and the U.S. after first succeeding in Asia,” Kim said. “I think we have a brighter future ahead of us.”
Sungjoo Group, which was an importer of luxury fashion brands such as Gucci and Yves Saint Laurent, acquired MCM in 2005 to become the first Korean company to operate a European fashion house.
MCM posted a 180 percent on-year sales increase in Europe and a 200 percent increase in China in the first half of 2014. It is one of the few luxury brands whose popularity began in Asia before moving on to the West.
By Bae Ji-sook (firstname.lastname@example.org