All operational activities, from production and distribution to retail, are to be handed over completely to license partners. In future, the company management will only manage the property rights and the business with the partners yet to be acquired.
With this, Esprit is now to be transformed into an intellectual property management company and will grant licenses for various product groups to strategic partners. “If the right strategic partners are in place, a business model based on licenses offers considerable growth potential,” says the Group in the press release.
It would also receive a “predictable license income”, which would be less subject to fluctuations in demand, and could “focus its resources entirely on strategic IP management and marketing”.
In addition, the small-scale concept offers considerable flexibility: “Instead of relying on a single global licensee or operator, the company can enter into strategic partnerships with regional players,” Esprit emphasized. It is therefore also planned to award licenses for individual product categories in a region to different partners.
