Fashion brand Esprit and French kidswear retailer Groupe Zannier have signed a five-year licensing agreement.
The partnership includes the development, production and distribution of Esprit’s kid’s apparel and kid’s accessories, which will be converted into a license product in Europe and the Middle East.
“Esprit Kids’ products will continue to be available in Esprit's ecommerce store and owned stores, and will also be available for the retail and wholesale partners of the Group,” Esprit said in a press release.
Full implementation of Esprit Kids by Groupe Zannier will begin on January 1, 2016, although the two companies have started working closely to ensure a seamless handover and placement of all people from Esprit Kids.
“Signing this license agreement is the result of a year-long careful assessment of the best business solution to turn around Esprit Kids’ weak top-line development over recent financial years,” it added.
“Pressures on operating margins make it crucial for every brand to maintain a relevant scale in the market,” Esprit observed.
“The alliance of two strong international players provides the opportunity to effectively expand a quality distribution network, drive top line growth and capture essential cost efficiencies,” the fashion brand explained.
Jose Manuel Martínez, CEO at Esprit said, "Esprit is delighted that in Groupe Zannier, we have found the perfect partner to enhance our Esprit Kids brand.”
“With our joint approach, Esprit Kids will be present in Europe’s top kids wear destinations and our consumers will continue to enjoy Kids collections with an excellent value for money proposition,” he added.
“We are convinced that we have selected a licensee that complements Esprit’s overall brand positioning and strategy, and who can sustainably exploit the growth potential of a highly competitive market,” he noted.
With this license agreement, Esprit said, it stays abreast of the fact that its Kids business will much benefit from the introduction of a specialised kidswear partner that provides strong product, supply and distribution capabilities.
"We are proud to build on Esprit’s positive foundation and be a partner to spread out these inspiring kids products" said Remy Baume, Zannier Group CEO.
“As Europe’s largest group in children’s apparel, our strong distribution network allows us to commercially amplify Esprit Kids’ great brand awareness,” Baume too added.
Collaborating with Groupe Zannier, Esprit Kids will continue its presence in Esprit retail and franchise stores including the e-shop and at selected online and offline retailers.
Group Zannier operates 900 retail stores and manages 10,000 points of sales such as shop-in-shops in department stores. (AR)
Fibre2Fashion News Desk - India