Antwerp fashion brand Essentiel is looking for additional funds, mainly to finance its international expansion. Up until now, it had only used its own money to grow.
Decision later this year
Essentiel, founded in 1999, has grown into a fashion brand in 35 countries with 55 stores of its own and a presence with another nearly 1,000 independent retailers. In order to continue its groth, it will need additional funds: “We are talking to several interested parties, both investment funds and competitors from Belgium, France and the United Kingdom. We would love a Belgian partner, but several foreign candidates are extremely suited because they know how to deal with international expansion”, co-founder Esfan Eghtessadi told De Tijd.
Alongside his partner, Inge Onsea, he would love to make a decision later this year. Important is to know who will maintain control over the company, because both founders are reluctant to give up control. “We are open to an exchange of ideas with a business partner, but we want the final say. We have proven that we can be successful abroad and we have entered the most difficult markets, but we simply cannot do everything by ourselves”, Eghtessadi said.
United States
In the meantime, the fashion house is working tirelessly, because it will open three stores in the Netherlands in 2018. It also has plans for German stores in Berlin, Munich and Hamburg, following its first German store late last year, in Cologne. If there is an investor, it will turn its attention to markets like France, Italy and the United Kingdom. “Fashion cities like London, Paris or Milan have extremely expensive retail locations. Whenever we look for locations in those cities and hear the prices, I often wonder whether they are joking.”
Essentiel already has local partners in Asia, helping to open stores in South Korea and China, but it wants to open more stores there as well. The goal is to launch in the United States, where it was active until two years ago when it decided to divest. “We pulled out because we felt our local partner failed to market the brand properly. We definitely want to grow, but we are vigilant about keeping control.” The company may therefore plan another attempt to conquer the United states soon.
