Gentle Monster, operated by iiCombined, achieved a record revenue of over 600 billion won ($444.3 million) in the last year, driven by robust international demand, particularly in China and Japan, with innovative store designs and strategic celebrity collaborations boosting its global brand appeal.
According to the Financial Supervisory Service on Apr. 24, iiCombined’s consolidated revenue last year was more than 608.2 billion won ($444.3 million), with an operating profit of $110.4 million. This represents a 48% increase from the previous year’s revenue of $299.5 million. Additionally, the company’s operating profit margin reached 20-30%.
The surge in iiCombined’s revenue is attributed to Gentle Monster’s rising popularity abroad. Last year, its international sales amounted to $166.4 million, accounting for over a third of its total sales, with significant contributions from its entities in China and Japan.
Gentle Monster is a luxury brand that was founded in 2011 by Kim Han-kook. It has become one of South Korea’s leading brands, surpassing foreign luxury sunglasses brands in just a decade. In Mar. 2023, eBest Investment & Securities referred to iiCombined as the “next-generation Korean luxury stock” in a report.
Gentle Monster’s success can be attributed to its innovative and sensory store designs, which utilize ‘space marketing’.
From the outset, Kim focused on creating stores to establish the brand’s image, rather than just providing products.
In 2014, the brand gained significant traction not only in Korea but also among Chinese consumers when Jun Ji-Hyun, one of S. Korea’s most famous stars who starred in the SBS drama ‘My Love from the Star’, wore Gentle Monster sunglasses.
Currently, Gentle Monster has physical stores in multiple countries including S. Korea, China, Taiwan, Singapore, Japan, the United States, UAE, the UK, and Australia. These stores are adorned with large art objects, each themed differently, transforming commercial spaces into ones closely resembling art spaces.
In China alone, iiCombined manages 20 Gentle Monster stores located in 15 cities. Known for its exceptional store design capabilities, the company was given the responsibility of designing spaces for the SKP-S Beijing branch, a renowned global department store in China. This marked a significant achievement as it was the first Korean company to do so in 2021.
In the beginning of this year, iiCombined considered opening a standalone store in Tokyo, Japan. Furthermore, it established new entities in Japan, the Philippines, and Taiwan last year to expedite its global expansion.
Moreover, iiCombined continues to focus on marketing through collaborations with celebrities like soccer player Son Heung-min and singer Jennie from BLACKPINK, and maintains ongoing partnerships with international luxury brands such as Fendi, Moncler, and Maison Margiela.
Back in 2017, iiCombined was valued at around $511.8 million-$585 million. By the time it reached its 10th year in 2020, it had become a unicorn company with an estimated valuation of up to $1 billion. A unicorn company is a startup that has a value of over $1 billion, according to the venture capital industry.
Kim Ran-do, a professor from the Consumer Science department at Seoul National University, stated in his book ‘Trend Korea 2023′ that Gentle Monster has successfully raised its brand value by incorporating viral marketing techniques. By creating innovative spaces that emotionally stimulate their customers, the brand encourages them to share their experiences with others spontaneously.
