Esprit to return with flagship store in city

Esprit (0330), the once high-flying Hong Kong fashion retailer before it tumbled into years of losses, is planning a comeback in Asia after closing all 56 stores in the region in early 2020 amid Covid-induced lockdowns.

The company is now focusing on better-quality clothing that's more expensive than fast-fashion apparel but more sustainable, chief executive William Pak said in an interview with Bloomberg Television yesterday.

A flagship outlet in Hong Kong's Causeway Bay shopping hub is set to open next month.

While the focus will remain on e-commerce, the company wants to have at least one signature store in key Asian markets where it also has an online presence, Pak said.

It has launched online platforms in South Korea, Hong Kong, Taiwan and the Philippines, and plans to expand into mainland China, Singapore and Thailand by the end of the year.

In its shift toward sustainability, Esprit has reduced its fashion cycles from 12 collections a year to just four, supplemented with limited-edition collections with other partners. It's also moved its headquarters back to Hong Kong to streamline communications and logistics because most of the company's suppliers are in Asia.

Still, Esprit faces an uphill battle winning back market share in Asia, one of the world's most competitive fashion markets crowded with global giants who are expanding aggressively physically and online.