MCM aims to double sales in five years

German accessories brand MCM, owned and run by South Korean entrepreneur Sung-joo Kim, aims to more than double sales to RM7.8 billion (US$2 billion) within five years.

Founded in Munich in 1976, MCM is known for its colourful $700 studded canvas backpacks. It  plans to expand in markets from Japan to Europe.

“We have not even explored the Japanese market yet, we are just starting there,” says Kim.

Unlike many European brands, MCM does not have a star designer, but has an in-house team of stylists to develop its products. Its collection is loaded with logo-embossed products. Its prices are around the same level as brands such as Celine and Louis Vuitton, and it makes around $700 million in annual sales, similar to Versace, reports Reuters.

South Korea has the world’s largest duty free market with annual sales of about $8 billion. MCM is the second-biggest duty free fashion brand by sales after Louis Vuitton, says Kim. Overall, MCM makes about 60 per cent of its sales in Asia, with the balance in Europe, the Middle East and America.

The youngest daughter of South Korean magnate Kim Soo-keon, Kim built her businesses from scratch after gaining experience at US department store Bloomingdale’s then developing Gucci’s South Korean business. After licensing MCM in 1991, she bought the German brand from a Swiss financier in 2005.

Kim says she estimates that within five years, 15 to 20 per cent of MCM’s sales could be through eCommerce.

Comments

2 comments

  1. Avatar

    Kelly posted on April 25, 2016

    Dear journalist, As reported in your news article about MCM, MCM makes around $700 million in annual sales and South Korea leads with annual sales of about $8 billion. Do you mean MCM sales or duty-free market in South Korea registered $8 billion sales? Regards, Kelly reply

    • Inside Retail Asia

      Inside Retail Asia posted on April 26, 2016

      Hi Kelly. Our apologies if the story is ambiguous... MCM achieves about US$700 million in annual sales currently. South Korea's duty-free market is worth about US$8 billion annually - and Louis Vuitton is the leader in that market. reply

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