ASOS Business Case Study: Retail Sales Of China
ASOS has been doing vigorous growth from 2000 to 2016, which was profitable since 2003 and has 63% compound annual growth rate over the last 5 years. The retail sales of ASOS was just 3.3 million pounds in 2003, then there was a great growth, it has been increasing to 1403.7 which is over 400 times of 2003 in 2016.
ASOS had couple years of slow growth since 2003 to 2006. Maiden profit was gotten in 2003, then ASOS’s first own-label collection landed in 2004. “The business closed for six weeks in December 2005 caused by Buncefield fuel depot explosion” (ASOS, 2016), which influenced the turnover in the fourth quarter of 2005. ASOS showed their resilience when they bounced back after a fuel explosion …show more content…
Cooperation with other brands aims at improving the domestic enterprises and economy and not giving your market in the hand of foreign companies (Wang, 2008)
ASOS UK collaborated with other fashion brands, light luxury brands and designers nevertheless ASOS China did not cooperate with local brands and some of the brands they cooperated with were not popular enough and so people could not recognize ASOS in china (Today, 2016)
Furthermore, Cooperation with just brands are enough as even celebrities should be collaborated as it will have a great impact not just on the image of the brand but also help in spreading brand awareness as people of today rely so much on their favourite celebrities.
• Fashion Style
The fashion style of both UK and China are very different as Chinese people prefer low key dressing while Britons like bold, colourful and trendy dressing. One of the main reason is that ASOS in China was not localised and offered western style clothes rather than what Chinese people desire to wear. It has also been noticed in ASOS Weibo which is Chinese Twitter where people shared their view of not bringing in more of backless and V neck designs (Today,