Business Story EP.6 | Kim Sung Joo: The woman who resurrected German luxury brand MCM

Summary

The transcript features an interview with Sung-Joo Kim, the visionary behind MCM's revival in the luxury fashion industry. Kim shares her journey from challenging traditional luxury norms to leading MCM with a fusion of German heritage and Asian innovation. She discusses MCM's rebranding, early market skepticism, and the brand's rapid growth, especially in China. Kim also touches on the importance of the metaverse and smart luxury in MCM's future, her personal background, and her philosophy of 'motherhoodship' in leadership and giving back to society.

Takeaways

• 🌐 The global luxury brand market is valued at over 280 billion euros, with the United States, Europe, and China being the primary markets.
• 👜 In Thailand, Louis Vuitton, Chanel, and Gucci are the top luxury brands, followed by Prada, Fendi, and MCM among others.
• 🇩🇪 MCM was founded in 1925 by Michael Cromer in Munich, Germany, and is known for its trunk-style luggage inspired by the royal families and upper class.
• 🔄 MCM's brand identity combines the MCM logo, the Roaring Lion, and the diamond pattern, symbolizing luxury, durability, and elegance.
• 📉 MCM faced challenges during the global economic downturn of the 2000s but was revitalized after being acquired by the South Korean company Sungjoo Group in 2005.
• 🌟 Sungjoo Group's founder, Sung Joo Kim, was attracted to MCM due to its German heritage and the opportunity to differentiate it from French and Italian luxury brands.
• 🎉 MCM's rebranding strategy was initially met with skepticism but eventually gained success, especially in the Asian market, with the help of pop stars like Rain.
• 📈 The brand's growth in China was particularly significant, with 65 stores established within three years, contributing to a conquest of a 1.5 billion customer base.
• 🔮 Looking ahead, MCM aims to focus on smart luxury and the metaverse, creating hybrid retail hubs and engaging with the younger generation through digital platforms.
• 🌍 Sung Joo Kim aspires to make history as the first Asian woman to own and run a luxury brand on a global scale, emphasizing a two-way globalization approach.

Q & A

What is the current value of the global luxury brand market?

The global luxury brand market is valued at more than 280 billion euros or over 10 trillion Baht.

Which regions are considered the primary markets for luxury goods?

The United States, Europe, and China are the primary markets for luxury goods.

What are the top three luxury brands associated with in Thailand?

In Thailand, the top three luxury brands that people associate with are Louis Vuitton, Chanel, and Gucci.

Who is the founder of the MCM brand?

MCM was founded by Michael Cromer in 1925 in Munich, Germany.

What inspired Michael Cromer to create the MCM brand?

Michael Cromer was inspired by the trunk-style luggage used by the royal families and the upper class of the time to create the MCM brand.

What elements are combined in the MCM logo to represent the brand's identity?

The MCM logo combines three elements: the MCM logo, the Roaring Lion which represents nobility, and the diamond pattern from the Bavarian State Flag symbolizing preciousness, durability, and enduring elegance.

When was MCM at its peak, and who was its iconic model?

MCM was at its peak in the mid-1990s with Patricia Crawfords as its iconic model.

Which Korean company acquired MCM in 2005, and who is currently leading its management?

The Song Joo Group, a Korean company, acquired MCM in 2005, and the same management is still in place today.

Why did the Song Joo Group decide to buy MCM?

The founder of the Song Joo Group was intrigued by the idea of having a German luxury brand and wanted to apply technology and a different approach to the brand, which was traditionally associated with cars like Porsche, BMW, and Mercedes-Benz.

How did the initial market feedback to MCM's rebranding under the Song Joo Group's management?

The initial market feedback was skeptical, with some European media comparing the founder to Genghis Khan due to the bold move of rebranding and expanding the brand.

What strategy did MCM use to re-establish its presence in the Asian market?

MCM used the influence of pop stars, particularly the Korean singer Rain, who was an early adopter and a significant fan of the brand, to re-establish its presence in the Asian market.

What are the future directions for MCM's brand development?

MCM's future directions include focusing on the metaverse-driven smart luxury, creating hybrid retail hubs, and making stores more interactive playgrounds. They also plan to consider an IPO to make a significant impact in the open market.

What personal background information does Kim Song Joo share about herself in the interview?

Kim Song Joo comes from one of the biggest families in Korea, and her father owned a multi-billion dollar energy empire. She refused an arranged marriage and was disowned by her father, which led her to work hard and establish herself from scratch.

What is Kim Song Joo's concept of true richness, and how does she apply it to her business?

For Kim Song Joo, true richness is not about the money in the bank but about enriching one's heart and neighborhood. She believes in giving back to society, and ten percent of her company's profit always goes back to society.