For all the fans out there, the once-beloved fashion brand Esprit’s return to the US, which was set in motion last year, is still a work in progress, a top company executive told Retail Brew.
During Retail Brew’s recent virtual event, Scott Lux, EVP of global commerce and technology at Esprit, said the brand will test the waters with a number of different approaches, including pop-ups, specialty retail, and wholesale.
Last year, the California-native brand hosted pop-ups in New York, Chicago, Los Angeles, and Miami. “It was really to gather as much intelligence about the receptiveness of the brand, the relaunch, if you will. Do people remember Esprit? What’s it like to shop at Esprit?” Lux said.“That’s why we were very deliberate in using a pop-up strategy versus longer term physical retail.”
Lux said he is also cognizant of macroeconomic headwinds facing retail brands at large. He cited the example of LVMH, which reported a surprise drop in third-quarter sales in October. “We’re looking at all of these data points as, ‘Is that a bellwether of directionally where we think fashion or retail or luxury is headed?’ So, all of these components are informing our decision on the best approach to re-enter the US market,” he said.
For the US market, Esprit’s strategy is in part focused on partnerships. “We’re looking at, does it make sense to partner with specialty retail and wholesale first, as an entryway to get more of a footprint out there?” Lux said.
“Or do we go back and think differently for markets? Instead of doing a national footprint, do we focus on cluster markets of New York and LA first and maybe test with two or three locations within those markets?” he added.
Lux said Europe is still the largest market opportunity, which is why the clothing brand has focused its “strategy and the restructuring that’s underway in Europe.”
“The challenge for the US is, appealing as it is, is people…remember Esprit, but they haven’t shopped us. I think both of those dynamics are interesting and pose different challenges and opportunities,” Lux added.
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E-commerce changes: When it comes to online, Lux said, the clothing brand is rethinking its dot-com experience.
“I’m a big believer around leading with a content-first strategy,” Lux said. “But even before you can get to content first, we have to be very, very clear and specific on how we’re defining the next incarnation of Esprit.”
As the e-commerce market has matured, Esprit has also begun exploring a marketplace strategy to show up for shoppers where they are, including on platforms like TikTok Shop, and Instagram Shopping.
“The two things that I think are clear is, no longer is there a linear commerce path, and there's no longer a linear marketing path. The whole concept of funnel has been eliminated. And so you have to think of those touchpoints in that mindset,” Lux said.
Lux said he is very keen on connected TV as an online shopping destination, as it gains more traction from an ad revenue standpoint: “I’m bullish on YouTube and looking at those channels from a selling opportunity.”
The key piece that’s shaping Esprit’s e-commerce strategy is its distribution channels. “Instead of trying to pull people to DTC—your own ecosystem, which was kind of the model for most of e-commerce DTC brands about 10 years ago—is really ensuring that we can make it as easy as possible for you to purchase wherever you may be throughout the ecosystem,” Lux said.
Ultimately, Lux said, it’s more important to show up in marketplaces like TikTok Shop, Amazon, Instagram, etc., instead of running advertising and pulling shoppers into Esprit’s own ecosystem.
The average order value on Esprit is $60 and the brand is seeing maximum conversion rates on its own website when shoppers purchase using a laptop, Lux noted.