Asos Case Study

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Executive Summary

ASOS is known of the most recognized online clothing store in the United Kingdom. It offers products that people often see worn by celebrities. As such, many people are encouraged to try out their items. In addition, the prices of their products are relatively lower compared to high street fashion. Because of these along with other factors, ASOS was able to grow. With the growth of ASOS over the years, it is important to ensure that it can be sustained. The fact that online shoppers and traditional shoppers differ in terms of concerns and behavior, it is critical for ASOS to study the purchasing behavior of their market segment to determine the kind of strategy that they need use to ensure success now and in the future. This research focuses on the various aspects of online retailing in the hopes of investigating the purchasing behavior of ASOS customers and formulating recommendation on how to keep the margin profit of the company on increasing.

For the past 50 years, the retail industry has been under numerous changes (Braatz, 2002). For example, the 1950’s saw downtowns as the center of retailing. People would often go downtown to avail of various products and services. This products and services included clothing, food, hardware supplies and banking services. A decade later, a group of retailers started offering their products and services in large department stores. The idea is to provide convenience to the shoppers. By creating a place were various retailers can offer their products and services, shoppers will no longer have to make several trips to different locations in order to purchase the things that they need. This means that retailers hoped to create a one-stop shop for their customers. As a result, big names such as Wal-Mart and K-Mart made big names in the retail industry. On the other hand, downtown or small scale and specialized retail outlets experienced a decline in the 1970s and 1980s (Braatz, 2002).

From the late part of 1980s to the early years of 1990s, a new kind of retailing came in being. Home TV shopping networks as well as warehouse clubs became very popular among consumers. If one-stop department stores aimed to provide convenience to their customers, Home shopping networks brought the idea of convenience to a completely new level. Instead of encouraging customers to drive to their stores, retails brought the stores inside homes and purchasing the desired products is as easy as calling a toll free number. On the other hand, warehouse clubs offered customers the opportunity to buy products in bulk and at discounted prices. Costco and Sam’s Club are some of the warehouse clubs that earned success (Braatz, 2002).

The changes within the retail industry continued well into the late part of the 1990s. Along with the success of internet, retailers were quick to recognize surfing the web as well as the use of other internet applications was fast becoming incorporated in the lives of many people around world. For this reason, they have decided to bring their stores online. The move to utilize the internet was a good decision in terms of marketing. Cable television took 25 years to reach approximately 10 million people, while computers took seven years to do the same. However, the internet was able to manage that feat in just six months. This means that retail store will have more chances of exposure if they have their own website.

Since the utilization of the internet for retailing purposes, many companies have been able to experience the benefits of bringing their businesses online. With this, a need was created to formulate strategies that focus on maximizing the potentials of internet. Nowadays, ecommerce, ebanking and other forms of ebusinesses are becoming a popular choice among the consumers and as such, it is also becoming a popular form of business for companies. Increase in sales are usually expected by companies when they launch an online store of host websites...
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