What Made Asos Bloom?

Last week, Britain fashion Online retailers Asos The semi annual report in fiscal 2017 (up to the end of February this year, 6 months) released a number of bright data to the market: group revenue rose 37%, retail sales rose 38%, retail sales in the UK market rose 18%, retail sales in the international market rose 54%, gross profit increased 36%, pre tax profits rose 14%.

According to the world clothing and shoe net, in the past six months, the total retail sales of Asos amounted to 889 million 200 thousand pounds, gross profit was 440 million 100 thousand pounds, and the pre tax profit was 27 million 300 thousand pounds. Among them, the overseas market has achieved strong growth and sales volume is as high as 548 million 400 thousand. This gives the group confidence to increase annual sales expectations - sales growth expected to rise to 30%-35% in the 2017 fiscal year.

This good performance has made Asos recognized by the market. What are the internal and external causes that enable it to shine? From the public information, we can get the following important information:

　　 First, the strategy of price reduction has won a wider consumer group for Asos.

According to foreign media reports, in the past year, Asos has adopted a price cut to grab more market share, and the fact has proved that this strategy is correct. In explaining the cause of the increase in sales, the official also mentioned that "good products should be matched with the right price, plus the perfect logistics and distribution service". Of course, in addition, the positive impact brought by the weakness of the pound is also reflected in the performance of Asos.

Its official pointed out that the further reduction in the international market, especially in the European market, has achieved good results, and at the same time, the revenue from third party channels has increased by 15%.

　　 Two, the introduction of sportswear product line has achieved good results.

According to the world clothing and shoe net, in the first half of fiscal year 2017, Asos launched a series of sports. clothing Products. This market has long been carved up by Nike, Adidas, Puma, Reebok and other big brands. But in recent years, Ted Baker, New Look, Free People, Missguided and other fashion brands have also entered. Asos is also keen to smell this business opportunity, and quickly launch a sports product line and get a slice of it.

Asos official also revealed that this year will launch its own brand of sportswear series, including sports training, running, dance, yoga and other sub categories.

　　 Three, the fast updated brand portfolio has kept Asos alive.

Asos's strategy of continually updating brand portfolio has also proved to be right. In the quarter, the Asos platform added 100 new brands, but at the same time it also cut off 100 old brands that did not sell well. This rapid brand update iteration keeps it up to the changing market demand.

According to the world clothing and footwear net, its latest brands include Adolescent Clothing, VCA, Current Air, EFLA and other local niche brands, and also have Under Armour, Miss Selfridge, Burton and other international brands.

In addition, Asos and other brands of Asos series also exudes vitality, such as White x Saucony, Asos x Wah London and so on. This part of the exclusive product accounts for almost 60% of the sales of its e-commerce platform.

　　 Four, the growth of mobile terminals is also more powerful.

According to public information, in the first half of fiscal year 2017, all Asos digital channels have launched new mobile payment functions. During the period, its daily App downloads increased by 28%. The average number of App visits per month was 8 times, and the browsing time was longer than 80 minutes. At present, its mobile terminal traffic accounts for 70% of the total traffic (60% in the previous year), and the proportion of orders is 58% (51% in the previous year).

　　 Five, use social media network to accumulate a lot of popularity.

Asos is also highly praised for its rapid response to social media marketing. It has extensive contacts with consumers in new social media channels such as Instagram shopping content, Instagram Live, Facebook Live, Facebook Canvas and Snapchat. The number of fans in the first half of fiscal year 2017 increased by 25% to 21 million 300 thousand.

　　 Six. Upgrading of logistics and transport capabilities has become the engine of growth in the international market.

According to the world clothing shoes and hats net, Asos has transferred its inventory of 2 million units in the Eurohub 1 of Europe, Germany, to a brand new logistics distribution center in Berlin 1. The center is named Eurohub 2, which has more than two times the storage capacity of the original continent. Its throughput is almost 4 times that of the European consumer market, which greatly improves the consumption experience of European consumers. 2.

In the next quarter, Europe's 2 warehousing center will continue to expand its capacity to handle more orders from Germany, France, Spain and Italy, and reduce past consumption in inventory transfer.

In addition, the expansion of Asos in the US market is also irresistible. At present, 25% of orders in the US market are distributed by its US operations center, while the rest are distributed from the United Kingdom. However, as the third largest market in the United States, Asos has put the operation efficiency of the market into account.

Some analysts pointed out that Asos can find growth opportunities in the European and American markets, and also need to thank the market environment. Because in the United States or Europe, fast fashion brand e-commerce platforms like Asos are rarely seen in the 20 year old youth target group, and the price of goods is several hundred yuan, and more are around the luxury brand and the independent designer brand e-commerce platform (such as Net-a-Porter). "This led ASOS to find a bright road."

However, Asos in Europe and the United States is not so lucky in the Chinese market. It closed its Chinese website in April 2016, closed its flagship store in June 2016 and officially withdrew from the Chinese market in April 2016. At that time, Asos's losses in the Chinese market had reached 8 million 600 thousand euros, even close to the estimated 9 million pounds (10 million 490 thousand euros) previously invested in the market.

"In the overall strategy, China occupies only a small part of the total turnover of the company, but it takes a lot of energy, time and investment, which is not conducive to the overall situation," Asos official said in an interview.

Of course, the fact also proves that after the withdrawal from China, the overall performance of Asos has not been affected, and the expansion in the international market has not slowed down because of its failure in China.

More interesting reports, please pay attention to the world clothing shoes and hats net.