MCM’s China Business is Booming

on May 6 2014 | in Fashion Retail | by | with No Comments

china luxury retail

German luxury fashion brand MCM is expanding its presence in Asia with new boutiques and pop-up shops.

The brand is already very popular in South Korea, and endorsements from Korean stars are driving its popularity in China.

MCM’s two stores at the Lotte Main downtown outlet in Hong Kong had monthly sales of over $3 million earlier this year, with sales peaking in October, when $4 million worth of goods were sold at the brand’s main store. According to Lotte’s senior management, sales were up 82.8 percent in these locations last year. MCM is replacing the two former Lotte locations with one new store at the outlet to improve customers’ shopping experience. The new store will be joined by several new MCM retailers across Hong Kong.

MCM’s duty-free retail sales have also increased, with the brand’s China Duty Free store outlet in Sanya on the island of Hainan displaying remarkable growth in January and February. MCM opened its seventh Beijing store last month at the In88 shopping mall on Wanfujing Avenue in the Dongcheng district.

The brand wants to extend its travel retail presence in China into Shanghai and Beijing and enter new cities like Haikou in Hainan and Guangzhou and Shenzhen in the Guangdong Province. The next duty-free shop in China is set to open in Sanya in August, during the “peak summer tourist season.”

“In China MCM is popular everywhere. Our travel retail presence is well spread and in the domestic market we are looking at second-tier cities,” MCM Travel Retail Director Nicolas Roptin tells TRBusiness.

Roptin also said that consumer demand for MCM’s handbags and backpacks was strongly driving the brand’s “retail progress” into 2014. The average price for one of these items ranges from $700 to $1,000. The brand’s leather goods for men are also becoming popular among shoppers.

“We are selling more products for men – some items are unisex, including passport holders, business card holders and belts in different colors. Men also go for our classic design, the Visetos MCM logo design,” Roptin said.

Tthe brand is further expanding its Asian presence with its first foray into Taiwan’s duty-free market this year. According to TRBusiness, “the company has agreements with Ever Rich Duty Free to open a boutique in the Ever Rich Kinmen island duty free store that will cater mainly to Mainland Chinese visitors.” Pop-up shops will also appear in Taipei.

“Our target is to have MCM shops and boutiques in all key travel retail locations,” Roptin said. MCM is planning to open 10 new pop-up-shops and other retail locations across the world in 2015.

image credit: mcm

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