Asos expect to maintain current growth and use social proof and mobile to reach out to millennials
Asos is an online fashion retailer that is seeing better growth than its high-street rivals. The retailer’s sales have increased 30 percent in the last four months. They boast a customer base of 12million, 25% more customers than in 2015.
The online store is frequented by millennials, and is increasing sales at a time when Primark’s like-for-like sales fell 0.7 percent in the first half of this year. Primark does not offer online shopping and has been hit by fewer people shopping on the high street.
Asos continually tweaks its business to mobile. Mobile is currently responsible for two-thirds of site visits. Chief executive of Asos, Nick Beighton, says that 40 percent of clothing sales will eventually move online.
Asos stocks 85,000 products online and is upgrading technology to handle 30 orders per second.
Social Proof is a part of what has grown the Asos brand. Shoppers can upload pictures of themselves under the hashtag #AsSeenOnMe, these are then shared by Asos, with easy call-to-action buttons.
In the US Asos has a market share of 0.3 percent, leaving plenty of room for expansion. The retailer has set ambitious targets with growth projections that would see them tripling revenues in the next five years.
With high street fashion brands stagnating and in Primark’s case losing market value, it’s important to look to online fashion brands such as Asos as a template for apparel retailing. Fully optimized online shopping puts the retailer at an advantage allowing them to measure, track and grow in ways that traditional fashion retailers can’t. The weakness of the pound is an opportunity for retailers that buy in pounds and sell in stronger currencies.
Source: The Irish Times