Kim Sung-joo, one of Korea’s most successful businesswomen, is in trouble as sluggish local demand is taking its toll on her MCM brand-bag business

2013-09-24 17:18

MCM suffers major setback

By Choi Kyong-ae

Kim Sung-joo, one of Korea’s most successful businesswomen, is in trouble as sluggish local demand is taking its toll on her brand-bag business. Her Business is being pressured to withdraw or downsize from The Country’s major Department store chains, People familiar with The MATTER said Tuesday. “A decrease in sales of MCM brand bags Due to Boring Design and higher Prices is pushing Sungjoo (Group) to Shut down Scale down or MCM Stores in Lotte and Shinsegae Department Stores such as, “a person with Knowledge of Direct by Telephone The situation told The Korea Times.
named after He said Sungjoo Group Chairperson and CEO Sung-Joo Kim, 57, is in talks with Lotte Group to close down some of its MCM Stores, INITIALLY in non-metropolitan areas, in 31 Lotte Department Store chains Across The Country.

As Part of Overall its renovation Efforts underway at all of its 10 chains, said Tuesday they have Shinsegae Department Store MCM Stores but no plans to close down “under consideration is downsizing.”

said Hyundai Department Store in Consultation with IT is to readjust The display Sungjoo Location, or “zoning,” for Business MCM hand bags and other terms. Other Department Stores such as AK Plaza Galleria and they have said about Sungjoo Not yet discussed with Measure Any such.

Sungjoo The MCM Group Acquired from a German brand company in 2005 to enter The brand bag market and has positioned itself as a top brand hand bag maker. The MCM brand, and an acronym for Mode Creation Munich, was Created in Germany in 1976.

Pricing and Positioning But its IT policy to have endeared Not Customers who prefer local Upper-end brand bags such as Louis Vuitton and Prada Casual or price-competitive The prolonged bags Due to Economic Crisis.

MCM bags Tags are Available at price between 500,000 won and 1.5 million won ($ 470 – $ 1,400) or at retail Shops Department Stores.Increasing Number of Customers choose an over Western MCM bags brand bags even if they Hundreds of thousands of won by More Later, officials said at Department Stores.

“Sungjoo (Group) should have Read The brand bag in a rapidly changing market but IT Trend Stuck to its Own Design for years, “said a Lotte Department Store Official Not Asking to be named.

Instead of focusing on The Business, The Official The CEO said Participated in Political Activities to Support then ruling Party presidential Candidate Park Geun-hye During The Campaign Several Which lasted for months until Late February.

however, said Sungjoo Group IT Will Continue to focus on The Domestic market as well as Overseas Markets.

largely driven by strong demand from Chinese Customers, Sungjoo has posted a strong Performance in Asian Markets in Recent years .The unlisted company did not but its Earnings Figures Provide.

“We are just going through a reorganization to emerge in The Stronger local market,” said a Sungjoo Official on Condition of Anonymity. “We Will make plans to Finalize an Official statement if we withdraw or downsize in Stores Department Stores.”

Currently, Sungjoo bags at MCM Group Sells 286 Stores in 32 countries.