The Korea Times close
National
  • Politics
  • Foreign Affairs
  • Multicultural Community
  • Defense
  • Environment & Animals
  • Law & Crime
  • Society
  • Health & Science
Business
  • Tech
  • Bio
  • Companies
Finance
  • Companies
  • Economy
  • Markets
Opinion
  • Editorial
  • Columns
  • Thoughts of the Times
  • Cartoon
  • Today in History
  • Blogs
  • Tribune Service
  • Blondie & Garfield
  • Letter to President
  • Letter to the Editor
Lifestyle
  • Travel & Food
  • Trends
  • People & Events
  • Books
  • Around Town
  • Fortune Telling
Entertainment
& Arts
  • K-pop
  • Films
  • Shows & Dramas
  • Music
  • Theater & Others
Sports
World
  • SCMP
  • Asia
Video
  • Culture
  • People
  • News
Photos
  • Photo News
  • Darkroom
  • The Korea Times
  • search
  • Site Map
  • E-paper
  • Subscribe
  • Register
  • LogIn
search close
  • The Korea Times
  • search
  • Site Map
  • E-paper
  • Subscribe
  • Register
  • LogIn
search close
National
  • Politics
  • Foreign Affairs
  • Multicultural Community
  • Defense
  • Environment & Animals
  • Law & Crime
  • Society
  • Health & Science
Tue, May 17, 2022 | 13:27
Business
Is CEO's moonlighting hurting MCM?
Posted : 2014-11-18 17:30
Updated : 2014-11-19 08:05
Print Preview
Font Size Up
Font Size Down
By Park Si-soo

Kim Sung-joo
Kim Sung-joo
Luxury goods brand MCM is suffering from a sharp drop in sales here.

The brand has seen declines of around 10 percent in sales for three consecutive years, since 2012.

Industry watchers say there can be many reasons, starting with weaker spending, design problems and botched marketing strategies, as well as CEO Kim Sung-joo's recent appointment as president of the Korean Red Cross.

The consensus is that it could be difficult for the firm to realize its ambitious goal of 2 trillion won ($1.82 billion) in sales by 2020. MCM reported 400 billion won in sales last year, with just over half from overseas.

"I no longer use MCM because I don't feel privileged with it," said a 40-something career woman with a great interest in fashion and luxury goods.

She said she knows of many women who share that opinion.

Another customer, surnamed Park, complained that MCM's product designs can be blamed for the company's poor performance.

"Its design doesn't meet my style," Park said, referring to her backpack covered with small MCM logos.

A department store's sales clerk voiced a similar view, saying customers do not like to use natural colored bags or those coated with logos. Nevertheless, the firm continues to expand the lineup of products with design elements deemed "boring" by Koreans, because they appeal to Chinese customers, he said.

"MCM seems to focus on developing products for Chinese customers," the clerk said asking for anonymity. "For example, the company increased the production of gold or red bags, two colors favored by Chinese people."

According to data from the country's two major department stores, MCM's sales growth was almost flat in 2012 and fell 16 percent on average last year.

Its sales plunged 18.2 percent during the first nine months of the year, compared with the same period last year.

In August, Kim, chairwoman of Sungjoo Group that took over MCM in 2005, admitted that she had paid more attention to global business, especially China.

"But we are trying our best to improve the quality of the products and eventually position MCM as a top luxury brand in Korea," Kim said. "We have always focused on building up the brand power to compete with global fashion giants like LVMH."

Emailpss@ktimes.co.kr Article ListMore articles by this reporter
 
  • [EXCLUSIVE] Samsung drops plan to enter electric vehicle market
  • Seoul making moves to rein in increasing subway crimes
  • Helicopter crashes in Geoje; 3 seriously injured
  • Champion Cho A-yean's weakness
  • North Korea wrestles with worst health crisis
  • South Korea's new COVID-19 cases hit 4-month low amid efforts for return to normalcy
  • Korean Lee Kyoung-hoon defends PGA Tour title in Texas
  • T'way Air to open Incheon-Singapore route this month
  • Wealth gap expands among young generations
  • North Korean leader issues special order on medicine supply against epidemic: state media
  • What do Hong Kong students think of Korea? What do Hong Kong students think of Korea?
  • Kim Seon-ho to play male lead in 'Touching the Void' this July Kim Seon-ho to play male lead in 'Touching the Void' this July
  • Britney Spears says she has lost baby in a miscarriage Britney Spears says she has lost baby in a miscarriage
  • [INTERVIEW] 'Monstrous' creator Yeon Sang-ho gives his thoughts on divided reaction [INTERVIEW] 'Monstrous' creator Yeon Sang-ho gives his thoughts on divided reaction
  • Award-winning play explores family longing, aims to go global Award-winning play explores family longing, aims to go global
DARKROOM
  • 2022 Pulitzer Prize: Bearing witness to history

    2022 Pulitzer Prize: Bearing witness to history

  • Worsening drought puts millions at risk

    Worsening drought puts millions at risk

  • Our children deserve the best

    Our children deserve the best

  • End of mask mandates

    End of mask mandates

  • Rio Carnival returns after two-year hiatus

    Rio Carnival returns after two-year hiatus

The Korea Times
CEO & Publisher : Oh Young-jin
Digital News Email : webmaster@koreatimes.co.kr
Tel : 02-724-2114
Online newspaper registration No : 서울,아52844
Date of registration : 2020.02.05
Masthead : The Korea Times
Copyright © koreatimes.co.kr. All rights reserved.
  • About Us
  • Introduction
  • History
  • Location
  • Media Kit
  • Contact Us
  • Products & Service
  • Subscribe
  • E-paper
  • Mobile Service
  • RSS Service
  • Content Sales
  • Policy
  • Privacy Statement
  • Terms of Service
  • 고충처리인
  • Youth Protection Policy
  • Code of Ethics
  • Copyright Policy
  • Family Site
  • Hankook Ilbo
  • Dongwha Group