Esprit a fashion and lifestyle brand founded in 1968 in San Francisco, California and its potential to become the leader in the European fashion industry is examined from an internal and external perpective, using a set of analytical and strategic tools. Beginning with general industry-related approaches and ending in a
detailed competitor analysis where for example ZARA, H&M and s.Oliver are closely analyzed with a portfolio evaluation and a nine-cell matrix for example. The business process within this industry
differentiates between retail and wholesale channels, selling various division lines mostly under heavy time and cost pressure. This is due to short fashion collection life cycles, high product
variety depending on fashion trends and styles that come and go. The high level of rivalry in the fashion market is characterized
through approximately 60 main competitors forming the strongest competition in the middle and premium price segment. Sustainability, POS experience worlds and celebrity collections do represent the most important commercial fashion trends, whereas from the sales channel perspective online shops are the dominating turnover contributor in the future followed by flagship and outlet
stores, both also having a strong growth potential.
Within the Esprit corporate brand profile the three brand value competencies “newness and style”, smart and international outfitter and customer focus are disclosed, which are inherited and
proven within a broad range of operative measures to increase sales figures and brand awareness.
However the competition is not always one step behind but often more than a step ahead, as the key performance indicators of H&M, s.Oliver, Benetton, ZARA and C&A do show up. From a financial view ZARA is in the lead in Europe with 7.07 Billion Euro, whereas H&M is very attractive for shareholders having paid a 2.17 Euro dividend per share and the Italian rival Benetton is ahead in country
presence being represented in 120 countries.
The contender Esprit dominates the fashion region “Central Europe” and is best practice in online shops. Nevertheless there is room for improvement and strategic adjustments in sales, marketing and distribution processes to match
new business opportunities in existing markets and new markets like Poland or Russia are necessary or strictly spoken unavoidable to achieve further growth in the future in order to fulfil Esprit’s entitlement: Europe is our fashion culture.
Table of Contents
1 Introduction
1.1 Way of posing the problem
1.2 Scientific and business objectives
1.3 Implemented methodologies, analytical tools
1.4 Review of essential concepts and definitions
2 Industry Analysis
2.1 Economical Situation Analysis
2.2 Segmentation within Europe
2.3 Trends in the world of fashion
2.4 Factors driving the industry change
2.5 Key Success Factors
3 Esprit Company Profile
3.1 Key Facts and Figures
3.2 Brand Enhancement
3.3 Sales Channel Optimization Factors
4 Analysis of the main competitors and their strategies
4.1 Performance Review of Major European Players
4.2 Corporate Business Strategy evaluation of selected competitors against Esprit
4.2.1 s.Oliver (SWOT, Financial Analysis, Portfolio Evaluation, Brand Performance)
4.2.2 ZARA (SWOT, Financial Analysis, Portfolio Evaluation, Brand Performance)
4.2.3 Esprit (SWOT, Financial Analysis, Portfolio Evaluation, Brand Performance)
5 Substantiated Recommendations
6 Conclusion and Perspectives 2020
Objectives and Topics
This master thesis evaluates the potential of the fashion brand Esprit to become the leader in the European fashion industry. It conducts an internal and external analysis, comparing Esprit's performance and strategies with major competitors like s.Oliver and ZARA to identify necessary business improvements.
- Industry analysis of the European fashion market
- Evaluation of key success factors (KSFs) in sales, marketing, and distribution
- Comparative SWOT and financial analysis of major European fashion players
- Strategic assessment of sales channel optimization
- Formulation of substantiated business recommendations for future growth
Excerpt from the Book
1 Introduction
The world of fashion is a restless one. As quickly as the seasons are changing, collections, trends, colours, materials and cuts are moving simultaneously and hence the whole industry is adapting business planning on this seasonal behaviour. However, in contrast to the simultaneity of season change and fashion world responses, there is a disparity in the behaviour of markets and customers. The customers, no matter in which country, are looking for diversity and find them in a wide range of fashion brands differentiating themselves through design, quality, price, promotion, customer service and shopping options. In Italy people have a different attitude to fashion, then in Ireland, the available budget for clothes in a Bulgarian household differs from the percentage of income spent on apparel in the United Kingdom, due to a much lower purchasing power in Bulgaria. How can a fashion company manage to cope with the interplay between concurrent internal processes and uneven, unexpected external developments? How can a fashion company position itself against competitors? The answer to these questions is found in strategic corporate management behaviour, implemented and described for the fashion and lifestyle brand Esprit. Aiming to become “a more consumer driven company”, ensuring customer needs above all, Esprit has defined its corporate brand DNA: The world is our culture!
Summary of Chapters
1 Introduction: Provides an overview of the fashion industry's dynamics and establishes the research objective of evaluating Esprit’s potential for European market leadership.
2 Industry Analysis: Examines external environmental factors, market segmentation, fashion trends, and key success factors shaping the European fashion landscape.
3 Esprit Company Profile: Presents a detailed look at Esprit’s corporate structure, brand value, financial highlights, and existing sales channels.
4 Analysis of the main competitors and their strategies: Offers a comparative strategic and financial analysis of major European players, specifically s.Oliver, ZARA, and Esprit, using SWOT and matrix-based evaluations.
5 Substantiated Recommendations: Derives actionable strategic advice from the preceding analyses to improve Esprit's market performance.
6 Conclusion and Perspectives 2020: Synthesizes the research findings to outline the future path for Esprit towards 2020.
Keywords
Esprit, European fashion industry, Strategic corporate management, Market segmentation, Vertical integration, Key success factors, SWOT analysis, Competitor analysis, Brand enhancement, Online shops, Sales channel optimization, Consumer-driven company, Retail strategy, Wholesale business, Fashion trends.
Frequently Asked Questions
What is the core focus of this thesis?
The work focuses on analyzing the business and strategic positioning of the fashion brand Esprit to determine its potential to become the market leader in Europe.
What are the primary thematic areas?
Key themes include industry analysis, competitor performance, brand management, sales channel optimization, and the identification of industry-wide key success factors.
What is the primary objective of this academic research?
The main objective is to evaluate Esprit's strategic and operative business model against the competition and to provide recommendations that secure future growth in the European market.
Which scientific methods are applied?
The author uses a variety of business tools, including SWOT analysis, financial performance measurement, strategic group mapping, and Nine-Cell-Matrix evaluations.
What topics are covered in the main body of the work?
The main body covers a comprehensive market analysis, an examination of trends and key success factors, a detailed profile of Esprit, and an in-depth competitive benchmarking against players like s.Oliver and ZARA.
Which keywords characterize this thesis?
Important keywords include competitive rivalry, fashion retailing, multi-channel distribution, vertical integration, and consumer-centric brand positioning.
How does Esprit compare to ZARA?
The thesis finds that while ZARA is a best-practice model for vertical integration and dominates Southern European markets, Esprit is strong in Central Europe and excels in online shops but lags in brand core clarity.
What role does the German market play for Esprit?
Germany acts as a crucial "role model" and the strongest contributor to Esprit's turnover, though the thesis suggests diversifying expansion into under-penetrated markets like Eastern Europe.
Why is the "online shop" considered a key success factor?
The research identifies online presence as the strongest driving force in the European fashion industry, offering essential data for tracking performance and reacting quickly to market demands.
- Quote paper
- Julia Wimmers (Author), 2011, Esprit - a lifestyle brand aiming to become the European leader in the fashion industry, Munich, GRIN Verlag, https://www.grin.com/document/182384
