"Asian Renaissance" was the title of the uplifting and passionate speech given by Sung-Joo Kim, Chief Visionary Officer of German luxury fashion brand MCM, at the Conde Nast International Luxury Conference in Florence (April 22-23 2015). In a Q&A session with International Vogue Editor Suzy Menkes, the Korean-born businesswoman and philanthropist noted the significance of travel retail sales in Korea; the importance of K-pop collaborations in addition to forging partnerships with Western design/art talents; and coined the phrase "inclusive luxury" when calling on the industry to step up their CSR initiatives.
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| MCM Chief Visionary Officer Sung-Joo Kim with International Vogue Editor Suzy Menkes (Photo by Andreas Rentz/Getty Images for Condé Nast International Luxury Conference) |
Here is what Korea's leading businesswoman in the luxury sphere told the conference attendees:
1. You are a key player in the Korean
and Asian luxury market – in fact you have been its leader in the field for
nearly three decades. What changes have you seen since the early beginnings of
luxury consumerism?
• Asia, as a global economic powerhouse and leader, has
increased the size of luxury market and shifted the luxury demographic from the
traditional European luxury customer. They are younger and better informed
overall.
• Tastes and trends are not only dictated from West to
East, but exchanged between East and West.
• Technology has allowed consumers to be much better
informed and interconnected globally, and this has changed how luxury brands think
about how they present themselves globally.
2. You have taken over the European
brand MCM and transformed it into a label which really resonates with the youth
of Asia. You are talking to a room of European luxury heritage brands – I am
sure many of them would like to know your secret. How have you done this?
• Demographically, Asia has a much higher proportion of
youthful luxury consumers than many other parts of the world. MCM’s great
strength has been borne out of our ability to speak to this younger consumer
through innovative designs and communications that resonated more deeply.
• From its foundation in 1976 in Munich, MCM has been a
brand unafraid to experiment with its designs, to showcase bolder colours and
challenging our customers to be more daring in how they could express
themselves. This helped us tap into the desires of young Asian customers. In
addition, MCM’s ability to reinterpret concepts and products in a distinctive
and edgy manner has helped the brand to stand out, and resonate with customers
who want to stand out and be different.
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| Sung-Joo Kim (Photo by Andreas Rentz/Getty Images for Condé Nast International Luxury Conference) |
3. Probably the shout out to the world
about the youth mania in Korea came from Psy’s “Gangnam Style”. How important
is pop culture to the marketing of luxury goods now? How much of MCM’s success
do you attribute to your collaborations with K-Pop stars?
• MCM as a brand has always had deep roots in music and the arts, and our
close-knit relationships with Korean stars gave us very organic exposure to the
youthful luxury customers in Asia and helped us create a dedicated fanbase.
• This informs our vision of "New School Luxury" going
forwards as we become a global brand. We seek to interpret this way of engaging
and resonating with customers globally, not only with K-pop stars but also
through promoting youthful, cutting-edge talent in all cultural fields.
• MCM has uniquely been a luxury brand with deep and
organic roots in the music and art worlds. We have collaborated with top
Western artists and design talents who are edgy and cool, such as Craig &
Karl, will.i.am and the German artist Stefan Strumbel. Later this
year, we’re introducing a collection in partnership with Tobias Rehberger, who
is the most famous German contemporary artist alive today.
4. You have many different Asian
customers – what are the differences between say the Chinese, the Japanese and
the Koreans?
• The differences in customer tastes have no doubt been
informed by long established historical and cultural norms. The Japanese have
certainly become known for their refined and detail orientated appreciation of
aesthetics. The Chinese have been known as more bold, while Koreans have been
touted as a balance between the two. However, it is difficult to say how many
of these stereotypes hold true, especially now in a digitally interconnected
age.
• Korea is a geopolitical hotspot between China,
Russia, Japan and the US, and cultural influences have also reflected that over
time, which has meant Korea has absorbed all of this great cultural influence
and turned in into something both unique and digestible for the rest of Asia.
Korea's greatest strength may be in being able to interpret disparate cultural
ideas and repackage them into both innovative and fresh ideas for the Asian
market.
5. The Korean travel and duty free
retail market is the world’s largest. Why do you think that is?
• The Korean travel retail market is worth $7.5bn
– it’s bigger than airports like London Heathrow and Dubai. Part of the reason
is geopolitical – we are physically located nearby – literally in between the
world’s two biggest luxury shopping nations. Seoul is 1.5 hours away from Tokyo and
1.5 hours from Shanghai.
• With China becoming more open in conjunction with a
rapidly growing middle class, the Chinese tourist has been a rather ubiquitous
phenomenon that we have witnessed all over the world. According to recent
figures, almost half a million Chinese visitors come to Korea in one month
alone.
• The Chinese visit Korea in huge numbers because they
love K-pop, Korean TV shows and Korean-style entertainment. The famous TV show
My Love From the Stars has had more than 3bn views online so far, so this
is a lucrative market for brand endorsement.
• The shopping scene is very vibrant in Seoul, blending
new and old to stunning effect. Tourists come to buy high quality Korean
cosmetics, home electronics and luxury goods. Hong Kong is now viewed by some
Chinese as part of mainland China, and many want more of a unique experience
when travelling abroad.
6. Considering that MCM is a German
brand with an important business in Korea, what prospects do you see for a
local Korean luxury brand to make an impact worldwide?
• Historically brands have succeeded in the West and
found markets for expansion in Asia. More recently, many brands and products
are finding success in Asia and expanding to the West. Let's take for example
Uniqlo, or something as simple as BB cream.
• Already there are so many young Korean designers
emerging onto the world stage. There are also many talented Korean designers
currently heading design teams at some of the world’s top fashion houses. Some
of these great designers will be launching their own labels in the years to
come and they have great potential to have great success worldwide and even
create a new sensation – maybe creating even more impact than Japanese
designers did in Paris in the 1980 and 1990s.
7. How important is corporate and social
responsibility to the Asian customer?
CSR is very important to Asian customers
and corporations today. Since I started running my own business, I have donated
10% of my profits annually to initiatives that I support, including women’s
professional development, the arts and religious causes. The Sungjoo Foundation has
a long tradition of community engagement both in Korea and abroad. We should all include “inclusive luxury” in our luxury
businesses.
