Does Esprit lack a clear fashion focus?

Esprit runs on a global scale along the same lines as Zara and H&M.

But its kudos in the fashion world, particularly in the UK, is pretty small. 

This week its failure to make an impression on the UK market was confirmed in its full-year results. Turnover from its UK and Ireland stores took a 18.2% dive - the worst of all its major markets.

Esprit of course faces the same problems that all global retailers are grappling with — this is a global recession.

But Esprit’s biggest problem is not economic conditions but the fact that it  seems not to have a clear fashion focus.

There is no obvious USP when you walk into a store, its product is neither unique nor is it competitive on price. It has good basics but that is not enough in the present climate and when Esprit is pitted against such tough high street competitors.

Against the might of Zara, H&M and Gap it is a real problem.  

Customers — especially in the current climate — need a strong motive to part with their money rather than saving it. On top of that, customers are pickier than ever.

Bernstein senior analyst Luca Solca says that Esprit’s exposure to the wholesale market, mainly through independent retailers, is a weakness in this market. Wholesale counts for over 50 per cent of Esprit’s turnover.

Esprit is making an HK$800m (£63.7m) investment in retail and concentrating more on its product mix. It is also redistributing resources to its underperforming markets, including the UK.

New group chief executive Ronald van der Vis will take the helm after a handover period in November and the hope is that his expertise — gleaned from optical retail group Pearl Europe — has given him solid grounding in which to understand its many retail partners.

It is hoped that that he will bring exciting change to the group. Aged just 41, he may have the energy and the vision to revitalise the brand.

Whether he can turn the business around in the competitive fashion market, with limited fashion experience, remains to be seen.

But what Esprit needs to do now is make sure it really stands out amongst its European competitors.