Fashion brand Esprit and German shoe retailer Deichmann have inked a deal to develop a new footwear line offering value-for-money for customers and faster reaction to market trends.

Under the new arrangement, both companies will jointly develop the Esprit shoe collection, while Deichmann will manage the sourcing process and distribution to wholesalers will be managed by Esprit. The collection will be available in Esprit stores and online, and as of spring 2020 Deichmann will also carry its own range of Esprit shoes.

"In collaboration with Esprit, we would like to be on the forefront of setting trends in the development of fashionable shoe ranges, and we consider Esprit as a valuable addition to our branded footwear range. We are looking forward to a close and successful collaboration," says Heinrich Deichmann, chairman of the board of directors of Deichmann.

Anders Kristiansen, group CEO of Esprit, adds: "Deichmann has an enormous expertise in the shoe business and a good understanding of the Esprit brand. I am convinced that together we will develop inspired and fashionable shoes with great quality for our customers."

Esprit is in the midst of a restructuring in response to declining sales, and is focusing on product and brand initiatives to revive growth. This includes improving the product offering, as well as building a leaner and more responsive organisation and restructuring its cost base.

Earlier this year it said first-half net loss had widened to HK$1.77bn (US$225.5m) from HK$954m last year, with the business blaming a 14.4% fall in sales on reduced customer traffic due to "the weakness in brand identity and product appeal."

Expert analysis

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