The meaning of the name Esau is not clear. It is similar to the word for hair, but the letters are inverted. It appears to be related to the verb Asah, which means to do or make. This is important because Esau is symbolic of the flesh. Apparently, he had talent and ability, but he was a man ruled by his desires.
It is the first time that God begins to choose people based on inward characteristics over outward appearance. Leah was the second. David was the third and Jesus was the fourth. There may be others, but these are the ones that seem clearest to me.
It is also the first time that God chose the younger over the older, upsetting the world's system. He later chose Ephraim over Manasseh and David over his older brothers. You could also say that God chose Judah over his three older brothers.
Red Esau is also called Edom (which means red), but not because he was red, but because of the red lentil stew that Jacob gave him to eat.