British Fashion Electronics ASOS To Withdraw From China

At the beginning of April, ASOS announced that it would terminate the operation of China's mainland. China's official website will be closed. The Chinese distribution center and offices in Shanghai will also cease operation. The decision will allow the company to pay a closing cost of 10 million and a 4 million operating loss.

ASOS's gloomy exit is in sharp contrast to the high-profile entry into China three years ago.

A former ASOS China executive said overseas students are interested in fashion and fashion.

It is the main customer group of ASOS services. They are more sensitive to price changes, and can also use the company website to purchase goods more conveniently.

ASOS, the largest fashion business in the UK, announced its stop operation in China in early April, and its Chinese version website will be closed this month.

From a high-profile announcement to China, the ASOS company's survival time in China is only two and a half years.

It seems that another international electricity supplier in China is facing an acclimatization, which is the essence of ASOS's strategic failure.

After entering China, the quality of ASOS products is not up to date, the style is old, the brand is single, and the price is high, leading to its inability to be localized.

After a long time of loss, ASOS seems to be the right choice to stop business in China.

ASOS has entered the Chinese market in November 2013, and has invested about 100 million yuan to choose the company's own brand goods for sale in the Chinese market, open RMB settlement and Alipay payment business, and build a customer service, distribution and payment fully localized operation team.

In terms of channel, the company did not copy the platform mode of the UK and other countries. In 2014, it entered Tmall, launched the exclusive "dual channel" official website and Tmall flagship store in the world, trying to attract more attention, and turn many consumers on Tmall into their own users.

But after two and a half years of trial,

China's total business loss was 8 million 600 thousand euros.

Its business in the US and Europe has been surging forward.

According to the financial report, as of the end of November 2015, the first quarter of fiscal year 2016, ASOS international sales recorded an increase of 20%, and the growth rate in the US and Europe rose to 42% and 29% respectively.

ASOS chief executive Nick Beighton acknowledged that the Chinese market, as the fifth largest market of the company, is very different from any other market, and its products have not been recognized by Chinese consumers.

ASOS UK website launched the "global mail" as early as 2010. After the platform purchased goods, postage packages sent by Royal Mail were free of postage.

Although postal delivery is slow, mail packages will be sent through China Post after entering China, but the "global mail" measures effectively attract a large number of overseas consumers to shop through their official website.

However, ASOS is entering.

After that, the advantage of freight was lost.

In ASOS, China's official website and Tmall flagship store are 249 yuan, which is much higher than other international fast fashion brands.

Beijing Business Daily reporter survey found that in Tmall flagship store, UNIQLO, C&A, Forever21 and other fast fashion brands full of 200 yuan postage, ZARA is free of charge, compared with these brands, ASOS freight advantage decreases.

The location of the company in the mainland and overseas is fashionable, low price and fast update, but the richness of its products and the trend following design have not been well displayed in the Chinese market.

Consumers soon found that the prices of products purchased on the official website of China seemed to be higher than those purchased on the official website of the United Kingdom.

At the same time, with fewer options and lagging products, the positioning of China's ASOS website is not in line with its fashion and update speed.

For consumers, the most important thing is that the products of ASOS can not be localized, or that the British brand has failed to get the taste of Chinese consumers, leading to the fact that the Chinese consumers are not buying the products that are imported from Europe and America.

After visiting the Beijing Commercial Daily, a reporter found that in his official micro-blog's commentary area, Chinese consumers could often see the suggestion of "reducing the design of the" V "clothing.

Cheng Weixiong, general manager of clothing expert and Shanghai Liang Qi Brand Management Co., Ltd., said that after ASOS entered China, the Chinese market could not be thoroughly understood. The company was mainly in China parity products, and faced with competition from the fast fashion giants such as ZARA and UNIQLO, such as the fast fashion giants and Taobao, and so on.