Esprit Plans To Close Stores In The Second Half Of May Or Make A Comeback.

Esprit announced that it will close shop in May 31st.

According to media reports, since February, Esprit's China store and official website have cleared inventory through 90 percent off sales. In April, Tmall flagship store also joined in the discount camp, and Esprit took the countdown in the Chinese market.

According to the announcement of Esprit Tmall flagship store, Esprit will be temporarily closed on 31 May, and members will also be terminated in May 31st. All stores in mainland China will also be closed.

As a matter of fact, the Esprit shop is not going to quit completely as it is supposed to be, but is part of its partnership with Mu Shang Group.

In December 1, 2019, Esprit's parent company Global Holdings Limited announced that a joint venture agreement between Affiliated Companies and Wansheng Group Holdings Limited, an indirect wholly owned company, will take effect from December 2, 2019.

According to the terms of the joint venture agreement, the moussing group and Wancheng resources have agreed to set up a joint venture in mainland China for the purpose of engaging in other Esprit businesses that may agree with clothing, clothing accessories and joint venture parties. The registered capital of the joint venture shall be 100 million yuan, and Mu Shang Ji invested 60 million yuan, holding 60% interest. Wancheng resources invested 40 million yuan, holding 40% rights and interests.

The announcement clearly pointed out that the transition from China's business to joint venture is expected to be completed in June 30, 2020. As part of the transition, Si Jie will close some shops or transfer the assets of the remaining Chinese shops to the joint venture company. The Board believes that this transaction creates a sound foundation for Esprit brand to improve brand relevance and speed up growth.

Next we'll see how Esprit will transform the company.

According to the previous report of the interface, the founder and CEO Yu Yong of mousse group acknowledged that the transformation of ESPRIT in the past was basically successful and that it would reshape the existing brand positioning, channels and products of ESPRIT.

He revealed that in the future, ESPRIT will no longer be a big shop like H&M or ZARA, but will adjust to a 100-200 square meter store, which will be the main channel for new generation shopping centers.

In addition to the channel, ESPRIT pricing, brand image and consumer portrait will be totally different now. "This brand still has brand recognition after 70, 80 and 90, and we may hope that it will return to the classic route of retro fashion instead of being framed in the concept of volume."

However, affected by the epidemic, it is not known whether the new ESPRIT will be opened as scheduled in the second half of the year.