MCM offers made-to-order designs at Tokyo pop-up
In this article (5)
Global fashion brand MCM said that it offered made-to-order designs of its most popular products for the first time at its pop-up store in Isetan department store in Tokyo.
The store, located in the luxury Isetan Shinjuku department store in Tokyo, Japan, allowed customers to pick up customized items they had designed through the brand‘s mobile app. Customizations included being able to change the color of the leather, handle or studs on MCM’s most popular products, as well as monogramming.
The digital MTO service is expected to attract great interest in the twenties and thirties with a strong desire to express their individuality in fashion.
Sungjoo Group, which holds global accessories brand MCM, has gone through a hard time. Since the Korean firm acquired the German brand in 2005, MCM’s sales revenue increased from 61.4 billion won in 2005 to 121.9 billion won in 2007. It posted 370 billion won in 2012, 450 billion won in 2013 and 589.9 billion won in 2014.
However, the trend began to move downward after 2014. MCM posted 579.1 billion won in sales last year. The luxury brand has gone through a hard time in Japan as well. Its two subsidiaries there have suffered net losses for four consecutive years, recording 17.6 billion won in cumulative losses.
“The result is because of our initial investment in the country. We do not worry about the result, as we are positive of successfully entering the fiercely competitive Japanese market,” a Sungjoo official said.
Recently, MCM is strengthening its global business in order to make a second leap.
Starting in July, the MTO service will be available at the brand‘s two stores in Ginza in Tokyo. The service will be expanded globally to cover MCM’s 35 markets in the second half of 2017.
Questions & Answers
Q.What kind of customisations were available to customers using the made-to-order service?
What kind of customisations were available to customers using the made-to-order service?
Customers could change the colour of the leather, handle, or studs on MCM’s most popular products. Monogramming was also offered as part of the customisation options.
Q.What is the broader strategy behind MCM’s new made-to-order service?
What is the broader strategy behind MCM’s new made-to-order service?
MCM is strengthening its global business with this service as part of a strategy to make a second leap. The service will expand globally to 35 markets in the second half of 2017.
Q.How have MCM's sales revenues changed since 2014?
How have MCM's sales revenues changed since 2014?
After peaking at 589.9 billion won in 2014, MCM’s sales revenue began to move downward. Last year, the brand posted 579.1 billion won in sales.
Q.Why does the Sungjoo official remain positive about their performance in Japan despite losses?
Why does the Sungjoo official remain positive about their performance in Japan despite losses?
The official attributes the losses to initial investment in the country. They are confident of successfully entering the fiercely competitive Japanese market and are not concerned about the current results.
Reader pulse
Is MCM's MTO strategy a major shift for Japan?
17,178 votes so far