ASOS Has Tight Relations With Suppliers, And International Market Is Threatened.

It is understood that ASOS has many partnerships with many fashion brands, including New Look, Karen Millen and Reiss, and ASOS has its own clothing brand.

These fashion brands that are working with ASOS are very unhappy with ASOS's big discount sales strategy, especially during the Christmas shopping season last year when the contradiction between brands and ASOS reached its peak.

According to industry analysis, ASOS's discounted sales strategy has hurt its brand image and deteriorated its relationship with suppliers, which is not conducive to future development.

But no brand has yet to withdraw from ASOS.

Because ASOS can bring a lot of sales to branding after all.

Some businesses have also imposed sanctions against ASOS, which only allows ASOS to sell their products in the UK instead of allowing them to sell their goods overseas. This is a bad challenge for ASOS, which is constantly expanding internationally.

ASOS released

It has already shown their weakness in the international market, and insiders expect that ASOS will increase its spending to save the situation.

ASOS's share price has fallen by 65% since the beginning of this year, and investors are worried about the shrinking of ASOS's profits.

Before issuing earnings warning, ASOS valued at 6 billion pounds.

CEONick Robertson still expressed confidence in ASOS, saying it would seize the opportunity to improve its business condition, but it did not comment on the dissatisfaction of the brand.

In view of the sluggish overseas market, ASOS also plans to cut prices and even offer free return services in its Australian market.

Australia is the largest market for ASOS outside the UK, but because of the depreciation of the Australian dollar, the ASOS products are no longer competitive in Australia.

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Amazon, which is expanding at a high speed, is still busy.

Public information shows that Amazon has entered the three major hardware areas this year with its streaming media TV set-top boxes, FirePhone smart phones and LocalRegister payment services.

In addition to these, Amazon has released localization service bazaars, unlimited number of e-book subscription services, Pantry grocery distribution service (and its matching bar code scanner), and a streaming music service.

In fact, Amazon is still trying to deliver UAVs, and has invested millions of dollars in homemade drama.

And behind this series of big handwriting is the zero profit policy that has always been adhered to.

According to the spread of the industry, over the years, it has been fluctuating on the margins of losses and profits, spending every penny, which has made Amazon maintain a growth rate of more than 20% per year over the past 10 years.

It has been reported that Amazon has hired some people internally, whose responsibility is to ensure that Amazon's net profit is zero.

In this regard, Analysys International analyst Wang Xiaoxing told the "First Financial Daily" reporter, because every cent spent on investment and innovation, Amazon's business in order to achieve high-speed growth very closely linked to the layout of the business.

At the same time, its business connection is closely related, such as Kindle e-book copyright - entity book business - providing cloud computing services (AmazonWebServices) and other one-stop services for enterprises on the platform.

In the view of Li Chengdong, an e-commerce strategist, Kindle, as an extension of content hardware, has benefited from Amazon's content in the book category, and extends to publishing and distribution.

But it is not that simple to copy Kindle's success to other categories.

According to the Taiwan science and technology news, it has only been two months since the listing. Amazon's 3D mobile FirePhone has begun to adopt a price reduction policy. The price of the FirePhone smartphone sold by the US telecom operator AT&T will be reduced to $0.99 from the original 199 US dollars.

Previously, mobile phones were considered to be the last and most important link of Amazon.

According to Bezos's expectation, Prime can effectively bind consumers of Amazon devices.

"Mobile phone is not the strength of Amazon. It is far from the content and experience of Amazon."

Insiders explained this way.

In fact, when Amazon is expanding to more and more vertical areas, these innovative businesses are also facing many competitors' counterattacks.

Take the AWS cloud computing business with high expectations of Bezos, for example, Google and Microsoft have lowered the price of cloud computing services one after another, in order to challenge Amazon's hegemony.