On April 1, ESPRIT parent company Esprit Global released its financial announcement for the second half of 2020. The announcement showed that in the six months ended December 31, 2020, the group’s revenue was HK$886 million, and the company had a net loss of HK$414 million.
It can be seen that the epidemic has once again caused a devastating blow to this middle-aged fashion brand. It is reported that Esprit Global’s net profit loss in 2020 was nearly HK$4 billion.
Looking back on the development history of ESPRIT, at its peak, Brigitte Lin personally brought the goods, and celebrities such as Leslie Cheung and Anita Mui took to the stage. However, after more than ten years of dominance, in 2009, Esprit Global’s revenue and net profit began to decline. In 2013, it was kicked out of the blue chip stock market. Until now, it has terminated all Asian market operations and suffered serious losses in performance… It can’t help but make people sigh.
How did ESPRIT, the once-famous high-street fashion brand, get to where it is today?
According to ESPRIT’s own explanation, the design lacks innovation, product updates are slow, and it cannot keep up with the needs of young people. This is certainly part of the reason. In addition, it should be noted that the clothing market has undergone earth-shaking changes in the past ten years. After the 21st century, many clothing brands have entered the Chinese market. UNIQLO, ZARA, and HM have entered the market one after another, quickly attracting Attention of young consumers.
Faced with extremely competitive opponents, ESPRIT, which sticks to the old model, can only lose ground.
After the defeat, ESPRIT also reformed, learned from ZARA, optimized the supply chain, and changed product styles. However, after making profits for a period of time, it followed the management Frequent changes lead to a loss again. In December 2019, Esprit Global hoped to find another development opportunity through cooperation with GXG’s parent company Mulsanne Group, but it was “aborted” due to the epidemic.
We have no way of knowing whether ESPRIT, which has already flopped, can regroup, and for Chinese consumers, since ESPRIT announced its withdrawal from the Chinese market, This old brand no longer deserves more attention.
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