The Once Brilliant Hongkong Fashion Brand Esprit Will Be Forgotten.

According to the world clothing and shoe net, it may be that only people born before 1990 remembered Hongkong.

Brand Esprit is the most brilliant era since 2011, the red logo.

After a sharp fall in profits, 98% began to enter a difficult process of self rescue.

In February 22nd, Esprit released semi annual report in fiscal year 2016-2017, showing that the Esprit profit in the first half of the fiscal year was HK $61 million (or $7 million 860 thousand), which was much higher than that in the same period of 2015. The German market is still the largest market in Germany.

But turning losses into profits is not representative.

Sold more clothes - the sales revenue of Esprit in the first half of fiscal year was HK $8 billion 323 million, down 10.6% compared to the same period last year.

What really helped Esprit escape from losses was that it had taken a series of stop pricing activities, reduced profits to wholesaler partners, and closed down retail businesses that had no profit. That is to say, Esprit's profits were built on the basis of massive cost cutting.

Esprit has been decadent for a long time. As early as 2007, its territory has been gradually eroded by H&M and Zara. After 10 years, the market competition of global casual fashion has become more intense.

Hongkong's Esprit, the parent company of Esprit, launched a series of revival plans in 2009. But in the intense turbulence, it is difficult for the management to maintain stability. In the following years, the management level of CEO has changed, and even CEO has changed to two jobs.

Incumbent CEO Ma Sihao (Jose Manuel Martinez Gutierrez) comes from Zara.

Although Esprit is starting to make money again, it probably does not represent anything, because in the 2014 fiscal year, it once lost its profit (following chart), but once again after a flash in the pan, it fell into a loss.

In 2014, Ma Si Hao took his Zara experience to Esprit and embarked on a series of reforms to change the production and sales system, trying to make Esprit faster to adapt to the new competitive environment, including simplifying the supply chain and building four series of products to better keep up with the trend of products and optimize product inventory management.

But so far, we still can't see the signs of Esprit being cool again.

Competitors are getting stronger.

As of 2016, H&M has opened 3962 stores in 64 markets worldwide. As of 2015, Zara has opened 2162 stores in 88 markets, and UNIQLO is vigorously expanding its global expansion plan.

Over the past ten years, the fast fashion production and sales model has continued to prove its strong profitability, and cooperation with senior garment designers has also been attracting new consumption power.

But Esprit has to subvert its past system and rejoin the fast fashion game. It is very difficult to keep up with the market changes.

Styles are still lacking in attraction.

Open the Tmall flagship store of Esprit, you can see what Esprit sells now.

Although Esprit has once dug designers in Tommy Hilfiger and other brands, and has reformed its design process, Esprit's design is still not fashionable yet. Lattice collar cotton shirt is one of the most classic products of Esprit a dozen years ago, but is it true that young consumers really need it now?

More complex young generation

As for millennial generation, Z generation, and post-90s, how to plot the scope for young consumers and how to dominate the future of the apparel retailing industry, we have seen an endless stream of discussions.

How do they make purchase decisions? Do they really listen to the endorsement of idol stars? From which channels to buy clothes is their first choice? Every brand is groping for answers to these questions.

It is much more difficult for Esprit, who is not familiar with the younger generation of consumers, to clear up the details.

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