ESPRIT - Lost in Translation
ESPRIT, one of the icons of the German fashion industry, is currently undergoing a radical transformation under the leadership of Hong Kong billionaire Karen Lo.
In an interview with Manager Magazine in February 2023, Michael Lichtinger shares his assessment:
Karen Lo, a wealthy heiress from China, has set out to save the once flourishing Esprit brand from failure.
Faced with significant losses in Europe, where Esprit generates the majority of its revenue, Lo is taking bold action.
With the takeover of the company based in Ratingen, she commissioned CEO William Pak to polish her image. By opening flagship stores in global centers, streamlining the supply chain, increasing marketing on social networks and repositioning as a brand that promotes the flair of New York City, Lo aims to bring Esprit back to the top. Michael Lichtinger comments: “The strategy is radically different and leaves an impression for now,” says Michael Lichtinger, “Continuing like this would not work even after the many failed rescue attempts.”
The ambitious project also includes the establishment of “creative and technology centers” in London, Amsterdam and New York as well as pop-up stores in major cities such as New York and Seoul. The management team was replaced and the central divisions were relocated to Hong Kong. The distancing from the once so important European market and the obvious communication difficulties between Asia and the European headquarters in Ratingen have a worrying effect on many. It remains exciting to see how this strategy develops.
You can read the full article about Esprit's change of strategy in Manager Magazine from February 2023 or view it online at the following link (paywall).