Distributor to buy MCM brand
Sungjoo Design Tech & Distribution Inc. said yesterday that it will take over a popular German luxury brand, MCM, after serving as its exclusive distributor in Korea since 1994.
Han Young-ah, Sungjoo’s marketing director, said the takeover could be completed by October.
“We plan to open up a central location in Munich in October,” Ms. Han said. “That’s where MCM got its start, and where we will re-launch the MCM brand worldwide.”
Lee Go-hun, Sungjoo’s chief financial officer, said that because of continuing negotiations, he could not reveal how much Sungjoo would pay for MCM.
Another official with Sungjoo Design Tech & Distribution said the purchase of MCM should revitalize the struggling firm, which was once known as Germany’s answer to Louis Vuitton. Sungjoo is planning to create new products that will be ready by the time the acquisition is complete.
Sungjoo Design Tech & Distribution, a sister company of Sungjoo International Ltd., was founded in 1991 and has been the exclusive licensee of MCM.
Since March, when it signed a deal to receive exclusive distributing rights for Korean-made MCM goods in some parts of Southeast Asia, Sungjoo Design Tech & Distribution has been in charge of the German brand’s international marketing strategies and designing MCM’s signature handbags.
The Korean company also had a hand in the appointment of Ralph J. Polese, former head of Gucci Group, as new president and chief executive officer of the two firms’ alliance.
Besides MCM, Sungjoo Design Tech & Distribution has the exclusive rights to sell products by Marks & Spencer, Lulu Guinness and Billy Bag in Korea.
In 2004, MCM goods distributed by Sungjoo through more than 40 stores generated 62 billion won ($61 million) in sales, which is more than sales in MCM’s home country.
by Yang Sunny, Yoo Jee-ho