Comprehensive entertainment corporation Mound Media (CEO Shin Dong-ik) has acquired the fashion and accessory brand Recloset (CEO Kim Sung-jun).
This acquisition by Mound Media is a strategic decision aimed at expanding content IP formats, increasing the value chain and maximizing synergy, and securing a business base with sustainable growth potential.
Mound Media has developed its business centered on music, including Magic Strawberry Sound, which includes Jeong Gi-go, So-you, and Song So-hee, Lee Seung-yoon's independent label 'Diamond', music distributor 'Folkranos', and festival and performance planning company 'Wonder Rock', establishing a variety of original IP bases. Recently, they have strengthened their competitiveness in the market by acquiring the label 'Authentic', which includes Generation Z rockstar Han Lolo, thus expanding their label and ensuring musical diversity.
In particular, with the acquisition of Recloset, Mound Media secured a fashion brand with a diverse product range including eyewear, rain boots, bags, and hats, gaining various formats of IP beyond music and entertainment. This is expected to serve as a cornerstone for expanding the value chain through synergy with existing brands, rather than being limited to simply adding fashion IP, and for building a broader business portfolio.
Mound Media also has its own MD brand 'A0' (A-Zero), which oversees the total MD business from product planning to production and distribution. With the acquisition of Recloset, they have further solidified their position as a comprehensive content corporation by adding design capabilities and product lineup to the existing content IP and production infrastructure.
Mound Media, which has expanded its value chain through self-owned content IP (Mound Media) - IP-based product planning capabilities (Recloset) - production and distribution (A0), plans to showcase collaborative MD using its artists' IP on a trial basis. Subsequently, they intend to expand their business through collaboration with external artists and brands, establishing a revenue model with sustainable growth potential.
Meanwhile, Recloset, acquired by Mound Media, started as an eyewear brand in 2016 and has recently expanded its product line to include various fashion accessories. It operates primarily through major department stores nationwide and its own online mall, and has recently opened a flagship store in Myeongdong, following openings in Tokyo and Bali, to expand its offline contact points with domestic and international consumers.
Regarding the series of acquisitions, Mound Media explained that it is a strategic choice aimed at enhancing brand value and stabilizing the revenue structure, while expanding IP-based business.
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