Anne Klein Balances Quality and Price
By Cathy Rose A. Garcia
Staff Reporter
Some Koreans still lust after expensive luxury goods, but a growing number are now looking for quality products at reasonable prices.
Kim Young-cheol, CEO of Sung Chang International, believes Korean consumers are becoming more knowledgeable about the quality of clothes, handbags and shoes, and are no longer “blindly” buying luxury goods, simply because of the brand name.
“Koreans are now upgrading their lives, enjoying fine dining, wine and other luxuries. However, they are also thinking about the price of goods. So right now, the middle market is taking off. They’re thinking about the price and if the quality is worth it,” Kim told The Korea Times in an interview at his office in Gasan-dong, Seoul.
Kim is seeing more consumers flock to middle market brands with an upscale image, which are not as expensive as luxury brands. Because of the shift in preference, he said Sung Chang International, which manufactures Anne Klein New York and Anne Klein AK clothes and handbags under license, has been seeing a significant growth. Starting with sales worth 30 billion won in 2002, the company generated 190 billion won in sales last year. Kim expects this year’s sales to reach 300 billion won.
Founded in 1968 in New York, Anne Klein’s brand concept of classic but modern fashion seems to have clicked with today’s Korean women. Kim said a team of Korean designers take the designs from Anne Klein’s head office, and change it to suit Korean tastes.
“The Korean and American markets are so different, they both have their own preference for the size of the bags. So, we have a mix of styles adjusted for the Korean market,” he said.
The cut and fit of clothes are different for Korean women. Even the colors have to be tweaked, since an orange color that suited Caucasian women may not be flattering for a Korean woman.
Anne Klein New York is a high-end line, which targets career women in their `40s, while the more affordable AK line targets young women in their `20s to early `30s. For example, an Anne Klein New York suit costs between 700,000 won to 800,000 won and handbags costs 350,000 won to 400,000 won, and are available in department stores. Meanwhile, an AK suit goes for 350,000 won to 400,000 won, while handbags go for 150,000 won to 200,000 won.
Handbags are a fast-growing segment of the business. Sung Chang International has its own factory in Qingdao, China, which has manufactured handbags for other popular American brands since 1992. For Kim, quality and price are given utmost importance.
“We have a stable production system. We know what the global trends for handbags are. We are always looking for good materials at good prices, so we can provide reasonably priced products to our customers,” Kim said.
Anne Klein’s fall/winter handbag collection ranges from elegant clutch bags to big, slouchy bags in patent black, metallic gold, gray and red.
For the spring/summer collection, Anne Klein handbags will come in bright colors such as purple, poppy pink, green, and white. The purple patent Giant bag is accented with the Anne Klein lion logo, while the turquoise Edinburgh bag is influenced by the luxury brand Bottega Veneta’s distinctive woven design.
“We don’t think about increasing volume. We want to create more value. To make this happen, Anne Klein has to have a strong connection with the customers. I believe brands that cannot create value in this market cannot survive,” Kim said.
By Cathy Rose A. GarciaStaff ReporterSome Koreans still lust after expensive luxury goods, but a growing number are now looking for quality products at reasonable prices.Kim Young-cheol, CEO of Sung Chang International, believes Korean consumers are becoming more knowledgeable about the quality of clothes, handbags and shoes, and are no longer “blindly” buying luxury goods, simply because of the brand name.“Koreans are now upgrading their lives, enjoying fine dining, wine and other luxuries. However, they are also thinking about the price of goods. So right now, the middle market is taking off. They’re thinking about the price and if the quality is worth it,” Kim told The Korea Times in an interview at his office in Gasan-dong, Seoul.Kim is seeing more consumers flock to middle market brands with an upscale image, which are not as expensive as luxury brands. Because of the shift in preference, he said Sung Chang International, which manufactures Anne Klein New York and Anne Klein AK clothes and handbags under license, has been seeing a significant growth. Starting with sales worth 30 billion won in 2002, the company generated 190 billion won in sales last year. Kim expects this year’s sales to reach 300 billion won.Founded in 1968 in New York, Anne Klein’s brand concept of classic but modern fashion seems to have clicked with today’s Korean women. Kim said a team of Korean designers take the designs from Anne Klein’s head office, and change it to suit Korean tastes.“The Korean and American markets are so different, they both have their own preference for the size of the bags. So, we have a mix of styles adjusted for the Korean market,” he said.The cut and fit of clothes are different for Korean women. Even the colors have to be tweaked, since an orange color that suited Caucasian women may not be flattering for a Korean woman.Anne Klein New York is a high-end line, which targets career women in their `40s, while the more affordable AK line targets young women in their `20s to early `30s. For example, an Anne Klein New York suit costs between 700,000 won to 800,000 won and handbags costs 350,000 won to 400,000 won, and are available in department stores. Meanwhile, an AK suit goes for 350,000 won to 400,000 won, while handbags go for 150,000 won to 200,000 won.Handbags are a fast-growing segment of the business. Sung Chang International has its own factory in Qingdao, China, which has manufactured handbags for other popular American brands since 1992. For Kim, quality and price are given utmost importance.“We have a stable production system. We know what the global trends for handbags are. We are always looking for good materials at good prices, so we can provide reasonably priced products to our customers,” Kim said.Anne Klein’s fall/winter handbag collection ranges from elegant clutch bags to big, slouchy bags in patent black, metallic gold, gray and red.For the spring/summer collection, Anne Klein handbags will come in bright colors such as purple, poppy pink, green, and white. The purple patent Giant bag is accented with the Anne Klein lion logo, while the turquoise Edinburgh bag is influenced by the luxury brand Bottega Veneta’s distinctive woven design.“We don’t think about increasing volume. We want to create more value. To make this happen, Anne Klein has to have a strong connection with the customers. I believe brands that cannot create value in this market cannot survive,” Kim said.
