Entrepreneur Kim Sung-joo discusses her upbringing, the evolution of MCM Worldwide, and her vision for the future of luxury retail.

Kim Sung-joo, the South Korean entrepreneur and owner of MCM Worldwide, recalls her upbringing in the historic Donamjang house in Seoul, a magnificent structure built from Chinese oak by the last lineage of the Joseon dynasty. In an interview with the Financial Times, she mentions the house’s past as the temporary residence of South Korea’s first president, noting, “We slept on an Ibuzari [futon] on the floor, and were surrounded by really nice old paintings and screens.” Born in 1956, Kim moved to Seoul at the age of three with her family, which included three brothers and two sisters, witnessing the significant political and economic changes in South Korea.

At 68, Kim is a proponent of modern South Korean culture, highlighting the global rise of K-pop and K-beauty. “We are witnessing the emergence of an Asian renaissance. Young people are excited about it, and not just in the east,” she expressed, illustrating her perspective on the evolving identity of her homeland.

Kim’s professional life is characterized by a peripatetic lifestyle, as she travels extensively between her residences in Korea, London, and a new home in Switzerland, where MCM Worldwide has relocated its headquarters. She acquired MCM, a luxury leather-goods brand originally founded in Munich in the 1970s, in 2005. Under her leadership, MCM has expanded dramatically, from its roots in Hollywood and the U.S. to a significant presence in the Asian market, which now accounts for 50% of its sales.

In a bid to adapt to changing consumer preferences, Kim embraced a modern approach to luxury, significantly emphasizing function and convenience. “My team told me I was crazy… but I saw a paradigm shift,” Kim recounted, discussing her strategy to introduce a backpack to the MCM product line, just as younger consumers began prioritizing mobility and flexibility in their lifestyles. This perspective has positioned MCM as a key player in the aspirational luxury segment.

The brand has seen remarkable growth, now operating in 40 countries with over 650 stores. Kim noted that MCM Worldwide currently generates annual sales revenues of approximately $500 million, a significant increase from its size when she took over. This success has led to collaborations with high-profile celebrities and creatives, including Billie Eilish and K-pop star Rain, aligning the brand with a “global and digital nomad generation.”

Kim’s innovative marketing strategy encompasses vibrant cultural partnerships and events such as a poignant collaboration with British-Nigerian artist Yinka Ilori showcased at the recent Frieze Seoul art fair. Furthermore, MCM has been active in exploring emerging trends, recently presenting a unique exhibition entitled “MCM x Pet Therapy” at Milan Design Week—highlighting an anticipated $47.23 billion global pet accessories market by 2033.

Reflecting on her journey, Kim navigated significant personal and professional challenges, including her father’s disinheritance after she defied familial expectations regarding marriage. “I knew that lifestyle. It held nothing for me, and I rebelled against it,” she stated, demonstrating her resolve to define her own path. After her father’s death in 2001, Kim was able to reconcile, but she acknowledges that her experiences shaped her into an independent businesswoman.

In the wake of the 1998 financial crisis, Kim pivoted from her initial luxury franchise businesses to acquire MCM, transforming it into a thriving global brand with a workforce currently comprising approximately 70% women. This includes key figures like Tina Lutz Morris and Katie Chung, who lead the brand’s design and creative direction. Kim emphasized the importance of women in business, declaring them “untapped resources” who often go the extra mile.

Recognition for her contributions includes an OBE award in 2015 for her role in strengthening UK-South Korea relations. Kim has also served as president of the Korean Red Cross from 2014 to 2017 and expresses a commitment to assisting women and children in North Korea in the future.

Looking ahead, Kim is focusing on future developments in retail, including plans for an end-to-end digital transformation in Saudi Arabia, promising a comprehensive consumer experience that bridges multiple platforms from brick-and-mortar stores to the metaverse. As she continues to innovate and expand MCM Worldwide, Kim’s approach embodies the dynamism of contemporary luxury commerce.

Source: Noah Wire Services