Esprit is continuing with its global relaunch despite recently falling into the red again. In March, the struggling brand posted a 15 per cent sales decline to HK$7.063 billion (US$900 million) for the year, and estimated a loss attributable to shareholders of up to HK$700 million (US$89.2 million). But that hasn’t deterred CEO William Pak from his plan to return the brand to its former glory. Esprit recently opened a long-term pop-up store in New York City’s SoHo neighbourhood. At 3,0
At 3,000 square feet, the store provides an immersive shopping experience, featuring Memphis Design terrazzo patterns, new campaign imagery, vintage looks and archival materials and a dedicated customisation station for shoppers to personalise their purchases. And it is just the beginning of Esprit’s bricks-and-mortar rollout.
Creating a seamless experience
“Having a physical presence in New York City gives us the opportunity to bring customers closer and for us to educate them not only about our brand and products, but also to create a truly seamless, no-barrier Esprit experience,” William Pak, CEO of Esprit, told Inside Retail.
He went on to say that the pop-up space will allow customers to fully immerse themselves in the world of Esprit.
“By marrying new product and visuals with vintage items and archival catalogues, shoppers can connect with Esprit’s history of design and innovation while getting a preview into the brand’s future direction,” he added.
Pak noted that the space will celebrate a new theme each month through in-store merchandising, installations and activations. These experiential moments, in his opinion, will create a sense of community for its customers.
In store activations
Pak said the company will host in-store events and activations in order to attract customers to shop in person, so they can get to know the brand beyond its product offerings and experience the world it is trying to build.
He went on to say that the space is meant to be dynamic and interactive for customers. In his mind, it is so much more than a bricks-and-mortar retail space.
“Our goal is to become an international omnichannel powerhouse that reaches our customers at all touchpoints,” he stressed.
Pak revealed that the brand is partnering with ‘Vacation’ sunscreen in June via a limited-edition, eclectic ‘minibar’ to kick off the high summer season.
“Moving forward, we look to partner with other brands that celebrate the playfulness of our heritage and brand nostalgia. Additionally, we are looking to diversify product categories that speak to the entire Esprit lifestyle, inclusive of colourful logo socks, umbrellas, and home,” he said.
Measuring success
Pak said that Esprit will consider the SoHo pop-up to be a success if it helps the brand to increase awareness and grow its customer base within the desired demographics.
“Through monthly activations and new product deliveries, we will have a great opportunity to test and learn around the most compelling ways to stay connected in order build brand loyalty,” he explained.
From a key metric perspective, the company aims to grow conversions and build the quality of its sales.
The SoHo pop-up will help the company adapt its offering for the Esprit shopper in North America, and provide insight around how customers engage with the team, product and overall store environment.
“This will help inform how we refine the in-store experience to bring the brand to life and continue to inspire our customers, and to ensure a seamless transition into future permanent locations,” Pak stated.
Alignment is key
Listed on the Hong Kong Stock Exchange, Esprit currently operates about 160 retail stores, with an additional 450 franchise partner stores worldwide, and it is looking to expand its presence in North America this year.
Esprit returned to the US in the second half of 2022 with a pop-up in Los Angeles, and it plans to open another short-term pop-up in Los Angeles in the coming months.
Permanent retail locations are planned for New York City, Los Angeles, and Vancouver in late 2023. This, combined with the brand relaunch, is intended to put the company on track and help it strengthen its market position and achieve consistent, sustainable growth.
Esprit is set to officially relaunch globally this year, with a focus on modernising the brand heritage and values for today’s consumer. Customers will be reintroduced to Esprit’s signature playful, modern and cool aesthetic, updated for the 21st century.
“Esprit plans to open additional experiential retail stores, both pop-up and permanent, within the next year or so in major markets across the US and Canada,” Pak concluded.