Research & Analysis of Development Opportunities for Asos.Com

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On behalf of “Ure, Avin, Alaff” marketing consultants that specialise in strategy and market development my task is to research and analyse the development opportunities for (AS Seen On Screen) in this report. (Theory & practice Module Guide, p 22)

ASOS over ten years has become the market leader in the UK online fashion world with reported turnover of £165 m in 2009. They have developed a very competitive edge in fashion retailing through innovation, various delivery options, excellent communication with its customers, well maintained website and expansion of their trade internationally.

Until September 2008 ASOS as many other businesses benefited from economic boom and increased consumer spending, however it all came to an end after US mortgage market had collapsed. As a result of global financial crisis UK government has tried to protect businesses by reducing VAT (value added tax) to 15%, decreasing interest rates to 1% and providing £500 billion rescue money. Inflation during recession in 2009 has had a negative impact on retail industry’s domestic trade however weak pound has had a positive impact on international trade. A cult of celebrity has had a major impact on the development of fashion industry as a whole. Also technological development has played a big role in development of E-commerce in the UK and worldwide There are three main threats rising before ASOS: competition, dependence on IT system and infrastructure (storage, delivery) and foreign exchange rates. Mobile application services, innovation, international expansion and advertising is creates opportunity for ASOS to further expand their business. Today competition in fashion retail sector is very high, this results in power of suppliers being low and bargaining power of customer being high. Also the level of substitutes is very high. To continue successful growth of the business ASOS needs, to further develop their services, expand internationally and advertise more through various channels. HISTORICAL DEVELOPMENT & VALUE CHAIN:

The concept of‘Value Chain’will provide an overview of ASOS and how it has added value, and developed a competitive edge in fashion retailing. -Introduction:
ASOS (as seen on screen) is a UK based company launched in year 2000 by Nick Robertson and his business partner Quentin Griffith. The company that started as a small online fashion store has become one of the largest online-only fashion and beauty retailers that operates now on multimillion-pound scale and doubles its turnover virtually every year since launch (Figure 1.0) Figure 1.0 ASOS share chart from 2005 to 2010.

Source: ( Today ASOS is offering around 25000 branded and own label fashion lines across women’s, men’s and kid’s wear, as well as footwear, accessories, jewellery and beauty products. Large proportion of its clients is between 16-34 years old. Brief highlight of significant events:

2000 - ASOS launched
2001 - ASOS PLC Holdings was admitted to AIM1 on the London Stock Exchange •2004 - Introduced ASOS own label for Women
2004 – Made a maiden profit of £369,000
2005 - Launched ASOS Beauty
2005 - Buncefield Fuel Depot explosion closes business for 6 weeks •2006 - First UK online store to launch catwalk
2007 - Launched ASOS Magazine
2007 - Introduced ASOS own label for Men
2008 - Launched ASOS Outlet which is the discount arm of ASOS that offers end of line and previous season products at discounts up to 75% off. •2009 - Launched Little ASOS the collection that caters for babies up to 24 months and girls and boys aged from 2 to 6 years. •2009 - Launched Designer Store

2009 - Launched ASOS Life is a section of the site which allows users to create their own profiles and communicate through forums, blogs and groups. (Brief History,

AIM1 – Alternative Investment Market is an...
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