Esprit to cut 40% of its workforce; shifts its focus on online retailing
Hong Kong-based clothing manufacturer and brand, Esprit has announced that in a bid to return to the profit earning phase and compete against the online and fast-fashion retailers, it will terminate 40 per cent of its employees and shutter stores globally. The company also marked out that it will reduce the number of products from its offerings by up to 30 per cent and will focus more on neutral colours such as black, grey and white. The reduction in apparel assortment is expected to take place by June 2019. The offerings now will be focused more on the brand’s signature products like jeans, men’s chinos and T-shirts. Reportedly, the company agreed that it has lost touch with its audience and to improve the same, the apparel label is now looking at shifting its focus towards an omnichannel approach, as shoppers nowadays tend to shift more towards e-retailing.
Additionally, Esprit is also working towards enhancing its online presence and it has collaborated with Tmall and will offer its products on other platforms along with restructuring its exclusive online marketplace. It is important to add here that the company is targeting to open 220 stores in China by the end of 2023 and 78 additional stores are also on the blueprint for the brand across the rest of Asia.