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MCM, European new luxury brand aims global expansion

German luxury company, Mode Creation Munich (MCM), opened its first American stand-alone boutique in New York’s Plaza Hotel. One of MCM’s handbags – the bright yellow Alda tote – also made a cameo on the US’s teen drama series Gossip Girl.

CEO Sung Joo Kim, one of Asia’s most successful businesswomen, acquired MCM in 2005 and has since sunk over USD40 million of her own money into MCM since acquiring the brand for an undisclosed amount in 2005 and starting a global relaunch. Since then, MCM’s global sales of USD250 million in 2009 were more than double its sales of USD100 million in 2007.

When Kim acquired the company, however, MCM’s emphasis was mostly on Asia’s booming luxury markets in China, Korea and Japan. Since relaunching in Europe, Kim says the brand has now turned its focus to the US, where MCM saw only USD5 million in sales compared with USD16 million in 1993.

(Source: CNBC)