The Rise and Fall of Fairytales: Fashion Meets Technology

Updated 2024.01.04.

A Glimpse into a Changing World

In March 2020, Esprit Holdings (0330) faced COVID-19's impact. The Hong Kong Economic Journal reported on March 28 that public health measures forced near-total closure of Esprit's European stores. Bankruptcy protection for six German subsidiaries was sought to maintain solvency and liquidity.

Personal Perspective

My connection with Esprit stems from its founder's marriage to a famous actress. Their choice to expand their family, instead of enjoying solitude, is a reminder of the deeply personal nature of family decisions.

Tales of Fashion Giants

Giordano, founded in 1981 by visionary Jimmy Lai, is a notable Hong Kong fashion company. His strategic opportunism is evident in his writings on Giordano's business model.

Established in 1980, Esprit focused on Europe. Its European presence in the 1990s marked a significant achievement for a Hong Kong brand in the global fashion scene.

Fashion’s Tech Revolution

The success of local brands like Giordano and Esprit in the global market preceded new challenges. In 1985, Inditex, Zara's parent company, began a new era in fashion technology. Zara merged high-end experiences with value, revolutionizing the price-image dynamic.

Zara's technology-driven approach allowed global real-time SKU tracking. Data analytics provided immediate feedback, enabling swift adaptation in fashion design.

Technology and E-Commerce

Technological advances led traditional stores to face online retail threats. Initially, budget-friendly brands went digital due to lower costs. Over time, even luxury brands adapted to online sales. Inditex's shift shows that established brands need digital presence to connect with a wider customer base.

Conclusion

As "The Art of War" advises, avoid stagnation in competitive environments. The fashion industry demands agility, especially in a saturated market with limited pricing flexibility. Decisive action and adaptability are vital for success.