Building an Esprit Culture

The document details Esprit's transition from a high-growth fashion brand to one incorporating social and environmental ethics through its Ecollection line. It contrasts conventional cotton production with Ecollection's low-impact methods, analyzes the financial challenges of higher production costs, and evaluates the first season's sales results across Asia, Europe, and the USA. The case concludes by proposing four strategic alternatives for the line's future, ranging from continued R&D subsidization to full integration into the main product line.

• The Ecollection line utilizes a 'cradle-to-grave' life-cycle analysis to minimize environmental impact, replacing conventional chemical-heavy processes with organic cotton, natural dyes, and non-rusting metal alloys.
• Ecollection's environmentally benign manufacturing process results in significant resource savings, including approximately 60% more water saved, 50% less electricity used, and 80% more dye kept from effluent compared to conventional methods.
• Production costs for Ecollection are significantly higher than the main line, ranging from 30% to 100% more, driven by the high cost of organic cotton—which sold for $1 to $1.50 per pound in 1992—and labor-intensive farming methods.
• First season sales results for Ecollection were strongest in Asia, where 90% of the initial shipment in Hong Kong sold within two weeks, while results in the USA were disappointing due to economic recession and consumer skepticism.
• Market research indicates a gap between consumer attitudes and behavior; while many Americans are sympathetic to environmental concerns, they are often reluctant to pay a significant price premium, with one survey suggesting an average willingness to pay only 6.6% more for environmentally-friendly products.
• Esprit International subsidized the Ecollection line by approximately $1 million during its first season, treating the department as an R&D 'incubator' to gain a long-term sustainable competitive advantage.

APA

Trent, M. (1992). Building an Esprit Culture. World Resources Institute. https://pdf.wri.org/bell/case_1-56973-143-8_full_version_english.pdf

Chicago

Trent, Marcy. Building an Esprit Culture. World Resources Institute, 1992. https://pdf.wri.org/bell/case_1-56973-143-8_full_version_english.pdf.

Wikipedia

{{cite report |last1=Trent |first1=Marcy |title=Building an Esprit Culture |publisher=World Resources Institute |date=1992 |url=https://pdf.wri.org/bell/case_1-56973-143-8_full_version_english.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{trent1992building, author = {Trent, Marcy}, title = {{Building an Esprit Culture}}, institution = {World Resources Institute}, year = {1992}, url = {https://pdf.wri.org/bell/case_1-56973-143-8_full_version_english.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }