ASOS
http://www.thetimes100.co.uk/case-study--the-product-life-cycle-online-fashion--134-364-2.php (date accessed on 11-03-
2010)
The product life cycle and online fashion Introduction ASOS.com is the UK’s leading online fashion retailer. It offers own-label, branded and designer fashion products. The online retail industry is fast-moving. ASOS.com uses the product life cycle to ensure its product portfolio continues to meet the needs of its customers and provides up-to- date. The product life cycle The product life cycle shows the stages a product goes through over time in relation to its sales.
In the fashion industry the cycle is often short as trends and tastes change. For example, an
ASOS.com own-brand dress typically follows this sequence: • Introduction – dress is made available to customers. New items are initially promoted heavily on the website. For example, links to new items are featured on the homepage.
• Rapid growth – the product tends to promote itself as customers see the item in magazines.
ASOS.com must ensure it has adequate stock.
• Maturity – ASOS.com will remind people of the product, through, for example, trend features on the website and in the newsletter.
• Saturation – ASOS.com may reduce the price to clear stock and make room for new products.
• Decline – people become tired of the item and trends move on. Purpose of the product life cycle Fashion is fast-moving. Individual product life cycles may be seasonable. ASOS.com enjoys an extended product life cycle as the business has a large international market. In the southern hemisphere seasons are opposite to the UK. This combined with the trend of holidaying in winter means that items such as swimwear sell continuously. Understanding the product life cycle provides greater control. ASOS.com can:
• predict when revenue will flow in and calculate the profitability of products
• plan the introduction and withdrawal of
2010)
The product life cycle and online fashion Introduction ASOS.com is the UK’s leading online fashion retailer. It offers own-label, branded and designer fashion products. The online retail industry is fast-moving. ASOS.com uses the product life cycle to ensure its product portfolio continues to meet the needs of its customers and provides up-to- date. The product life cycle The product life cycle shows the stages a product goes through over time in relation to its sales.
In the fashion industry the cycle is often short as trends and tastes change. For example, an
ASOS.com own-brand dress typically follows this sequence: • Introduction – dress is made available to customers. New items are initially promoted heavily on the website. For example, links to new items are featured on the homepage.
• Rapid growth – the product tends to promote itself as customers see the item in magazines.
ASOS.com must ensure it has adequate stock.
• Maturity – ASOS.com will remind people of the product, through, for example, trend features on the website and in the newsletter.
• Saturation – ASOS.com may reduce the price to clear stock and make room for new products.
• Decline – people become tired of the item and trends move on. Purpose of the product life cycle Fashion is fast-moving. Individual product life cycles may be seasonable. ASOS.com enjoys an extended product life cycle as the business has a large international market. In the southern hemisphere seasons are opposite to the UK. This combined with the trend of holidaying in winter means that items such as swimwear sell continuously. Understanding the product life cycle provides greater control. ASOS.com can:
• predict when revenue will flow in and calculate the profitability of products
• plan the introduction and withdrawal of