MCM- Explaining the Hype !?
Behind The Brand- Fashion News #001
In this series, we share the stories behind famous brands. Our mission is simple: We want you to know what you are consuming, wearing or seeing on the streets and analyze the trends.
'MCM' everywhere you go. It seems like this label came out of nowhere. But the HYPE has a long story :
1976- The Beginning
MCM was founded 1976 by the couple Mara and Michael Cromer in Munich. They wanted to offer luxury luggage and handbags like Louis Vuitton did it with their famous monogram design. MCM stands for 'Michael Cromer München'.
Before he founded the company he was studying economics and worked as a model and actor. He got to know some famous and influential people of the industry who later represented his brand.
MCM became a big success. The monograph was a symbol of prestige.
Expansion: more than 240 stores worldwide in the prime location of cities.
Hollywood stars like Sammy Davis and Cindy Crawford promoted the brand.
According to own data MCM made over 500 million German marks in one year.
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Marketing
Michael Cromer was a master of marketing. He did everything to build his brand so people associated MCM with a luxury lifestyle and exclusivity. But it was expensive to keep this picture alive.
A turquoise Ferrari, expensive private parties only for members and regular news articles about a new 'MCM-scandal'.
Beginning of the end
Large amounts of the bags were copied in Asia and pumped in the market. This cost big turnover loses for the brand. The entrepreneur needed money to save the brand. His wife said he got into wrong hands.
1997- The End
He could not pay his credits back (over 11 million Swiss francs) and the banks and investors took the companies trademark rights as surety.
MCM is run down. The trademark rights are sold for around one million German marks.
Michael Cromer loses his company and took legal actions. But without success. A huge loss and according to his wife the reason for his health issues. On the 4th of September 2009, he died from organ failure. During his time in the hospital, he completed his book 'Die Michael Cromer München Story' in which he presents his point of view.
2005- Reinvention, The Buyout
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The Korean investor Sung Joo Kim bought the trademark rights and built the company from scratch. On the official website, the company name is changed to 'Modern Creation München'. Until 2020 she wants to double the revenue to 2 billion dollars. Today the company makes more than 50 percent of their profits in Asia.
Reasons for the HYPE:
1. A new Customer
The customers are mostly millennials. They don't know the story of the fallen empire.
A good starting point.
2. Redefinition of 'Luxus'
MCM did a perfect job in combining High-End Fashion with Streetwear.
They realized that this generation has different definitions and expectations for and from luxury goods.
3. The right people
Getting the right people on board who share the same vision is important.
With the creation of the backpacks, Michael Michaelsky did a phenomenal job as a creative director.
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4. Social Media/ Marketing
Football players, all kind of celebrities and famous bloggers are rocking the bags.
Also, MCM is promoting their products where the attention of their clients is: In Social Media.
MCM is back and at its peak. We still think it is important to know the dramatic background of this brand which started with a dream two people had.
What is your opinion about MCM? Do you think the Hype is over soon or will the brand stay on this level? Let us know and follow us for more Fashion News.