Banner Image

Asos goes from annus horribilis to the height of fashion

Article from: 
Wed, 22/07/2015 - 10:39
Article Image

A year ago, Asos, the clothing retailer, was reeling following profit warnings and a major fire at its depot in Barnsley.

Since then, a great turnaround has been achieved, and YouGov BrandIndex and Profiles data points to some of the reasons why.

Retail sales for the four months until the end of June increased 27% in the UK, while international sales were up 16%. This puts Asos on course to be at the higher end of its sales projection for the year. It appears as though the business is building momentum and exciting investors, while offering a clear service to customers. A warm summer has helped, with sales of summer dresses and holiday wear helping to boost profits.

Part of Asos’ appeal is rooted in its affordability, range of products and frequent reduced price offers, all of which appeal to the younger age bracket. Indeed, YouGov BrandIndex data does show that the younger age groups are most enamoured with Asos. Its Purchase Consideration metric score (whether you would consider buying a product from a brand) is +8.1% among all respondents. However, if we consider 18-24 year olds, the score rises dramatically to +35%. Our data also points towards women being more likely to buy from Asos than men.

This is replicated in Asos’ Value score. Again we see a relatively normal score among all our respondents (+4.1), however when we look at the younger age group – 18-29 year olds – the score is once again pointedly larger (+14.8).

Our Profiles data underlines which group Asos is having success with. The quintessential Asos customer is female, 18-24, says it is important to look physically attractive and use beauty products to make themselves look better. The way Asos appeals to this demographic has helped separate itself from competitors in the past year, carving out a niche within the market.

The challenge to Asos will be to widen its appeal to other age groups, whilst continuing its expansion in mainland Europe. Whether the heavy discounts will be reconsidered as growth continues is a matter for company bosses to consider. 

Image PA

People Illustration