Problem - Slow Response to Market Trends
The target customers of Esprit is youngsters, however, its products’ life cycle is too long that cannot chase the global market fashion trends. Therefore, its market positioning is unclear for customers. Also, it can only provide basic items due to its slow response to fashion trends. Consequently, its products cannot satisfy customers’ wants and needs. Holdings reported a 15.7% rise in net profit to HK$1.87 billion for six months ended 31/12/2005 that was at the low end of market forecast. It was mainly attributable to weak performance of its Women’s Casual and Collection lines.
Recommendation – Fast Fashion
Fast fashion is used to describe clothing collections which are based on the latest fashion trends presented in each Fashion Week. Those trends are designed and manufactured quickly and in an affordable way to let mainstream shoppers to purchase fashionable item with a reasonable price. This strategy is being adopted by some large retails like H&M and Zara.
The primary objective of fast fashion is to produce a product at low cost quickly. This efficiency is achieved by the retailers’ understanding of the wants and needs of consumers, which is a high fashion looking garment at a price at the lower end of the clothing sector.
Therefore, shortening the product life cycle and withdrawing low sales design enhance the image of Esprit. To create a fashionable image for Esprit, the response to fashion trends should be as quick as possible. Consequently, the customers would visit the stores and purchase the merchandizes more frequently.
Problem – Poor Marketing Positioning
As there too many lines in Esprit, like 12 collections of women casual, men casual, women collection, men collection, de.corp ESPRIT, URBAN CASUAL, edc by Esprit, edc men, accessories, kids & edc youth by Esprit, Esprit shoes and ESP Esprit sports.. Therefore, target customers are too various and unclear....