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Transcript of asos
Market Competition Financial Analysis About ASOS Economical Factors Social Factors Technological Factors Conclusion Environmental Factors Strategic Direction Thanks for Listening Any Questions? Any Questions? References Company Overview * The largest online-only fashion and beauty retailer within the UK
* First founded as 'As Seen On Screen' in 2000 by Nick Robertson and Quentin Griffiths
* Specialises in womenswear, menswear, footwear, accessories, jewellery and beauty
* Stocks over 50,000 product lines
* Own label and over 1,000 third party brands
* Attracts approx. 18.8 million visitors a month
* Ships to over 190 countries internationally Customer Profile "Twenty-somethings" Fashion Forward Medium Disposable Income Internet Savvy Outgoing Celebrity Inspired Market Position * Total consumer expenditure on clothing in 2011 was £44.67 bn
* Between 2007 and 2011, around 4.8% of all consumer expenditure has been spent on clothing each year
* Average weekly spend across all retailing in Sept 2012 was £6.6 bn (Sept 2011 was £6.4bn)
* Average weekly spend online in Sept 2012 was £507.8 million
*Total UK clothing retailing market valued at £43.1 bn in 2011 Current Market Trends * Current economic market
* Fast fashion
* Home shopping Strengths Weaknesses Opportunities Threats Mission Statement “ASOS aims to be the world’s number one online fashion destination for twenty-somethings who love fashion. We are focused squarely on winning the global online fashion race” (Asos 2012). The DNA of ASOS 1. CUSTOMER OBSESSED 2. RESTLESSLY INNOVATIVE 3. COLLABORATIVE AND RESPECTFUL 4. PASSIONATE Overview of Current Position Ageing Population * “The number of older people worldwide is growing faster than any other age group...within 10 years the number aged over 60 will pass one billion” (BBC News 2012).
* Older generation less dependent on technology - "They have the attitude that ‘I’ve got along all my life without it’ and in that respect getting online becomes a lifestyle issue” (Wakefield 2010).
- create a concept store to aid those who struggle with
* Fashion industry is less orientated towards this demographic.
- introduce new clothing range for grey market High Unemployment Rates * Double-dip recession is resulting in a decrease in demand for many fashion and consumer goods.
* From June to August 2012, 2.53 million people were unemployed within the UK.
* The youth sector (16-24) accounted for 957,000 of the unemployment total.
* Must continue to provide a wide range of price points and saver delivery options. * Asos have no control
over this technological
factor Climate * Continuous weather changes within Britain are a disrupting factor for any delivery-based company.
* ASOS pride themselves on offering fast and consistent deliveries to their customers.
* ASOS have no control
over this environmental
* Must ensure the courier
service they provide is
of high quality in order
to retain customer’s
loyalty. Speed and Convenience Choice Investing in the Future Launch of ASOS Premiere Increase in recruitment to meet requirements
of our growth; 16% increase in payroll
& staff costs Significant investments made in
Warehouse management systems & storage facilities Investing in the Future Growing potential customer base Surge in
m-commerce Social shopping Entertainment factor Ease of Spending Familiarity Problem of fit High level of Returns Enjoyment in shopping Impersonal Ageing population More men are now browsing for clothes Concept store Investing in the future Focus on growing international business Investing in the Future Market Position of ASOS New Mission Statement:
ASOS aims to be the world's number one online fashion destination by providing on-trend and innovative merchandise through a wide selection of brands. Growing Competition Porter's Three Generic Strategies Competitors Matrix Gradual Recovery Uncertain economic climate Increase of hacking The ongoing affect of the recession and slow recovery
have had a lasting impact on the clothing industry. Consumers are increasing more watchful of their spending on goods deemed ‘unnecessary’. Administrations and Takeovers At the start of 2012, value retailer Peacocks, children’s clothing outlet Pumpkin Patch and the sportswear group Blacks Leisure all fell into administration. This has become a recurrent trend in the marketplace, with many groups seeking to be bought out or acquired as sales remain bleak in the volatile market Launch of our new country specific websites in Australia, Spain and Italy, and the opening of our first overseas marketing office
in Australia ASOS own label established Profits re-invested in consumer
pricing and proposition Warehouse transistion successful,
no interuption to services ‘Shop to destination’ strategy continues
through technological innovation Data collection AIM Stockmarket Critical Sucess Factors Any Questions? Lack of print advertisements Recommendations * Branch into different advertising methods
* Target older demographic
- Concept store
- Introduce new range
* Sustain innovative strategies Technology and Social Media * Provides online and high-street retailers with a platform to market themselves to a global audience.
* Has allowed ASOS to be innovative by making use of social networking sites and new technology such as the Facebook store and the iPhone and iPad .
* Ability to trade online could be affected by system performance issues. ASOS need to continue to invest in IT resources and regularly update their Back-Up Recovery Plan. Strengths Weaknesses Opportunities Threats Speed and Convenience Choice Growing potential customer base Surge in
m-commerce Social shopping Entertainment factor Ease of Spending Familiarity Problem of fit High level of Returns Enjoyment in shopping Impersonal Ageing population More men are now browsing for clothes Concept store Growing Competition Uncertain economic climate Increase of hacking Data collection Critical Sucess Factors Lack of print advertisements SWOT
Analysis Strengths Weaknesses Opportunities Threats Any Questions? * ASOS, 2012. Asos. [online]. London, ENG: Asos. Available from: http://www.asos.com/ [Accessed 01 October 2012]. * ASOS PLC, 2012. Annual Report – 12 Months to 31 March 2012. [online]. London, ENG: Asos Plc. Available from: http://www.asosplc.com/investors/financials/results/2012/annual-report-12-months-to-31-march-2012 [Accessed 01 October 2012].
* BBC NEWS, 2012. Warns over impact of rapidly ageing populations. [online]. London, ENG: BBC News. Available from: http://www.bbc.co.uk/news/world-19784509 [Accessed 11 October 2012].
* BBC NEWS., 2012. “Disposable income at nine-year low, ONS figures show.” [online]. London: BBC. Available from http://www.bbc.co.uk/news/business-19060716 [Accessed on 8th October 2012].
* BLAND., A., 2011. Rags to Riches: How ASOS defies the recession. [online]. London: Dennis Publishing Ltd. Available from http://www.theweek.co.uk/5057/rags-riches-how-asos-defies-recession [Accessed on 18th October 2012].
*ELDRING. J., 2009. Porters 1980 Generic Strategies, Performance and Risk. Hamburg: Druck Diplomica. * OFFICE FOR NATIONAL STATISTICS, 2012. Retail sales, September 2012. [online] Available from: http://www.ons.gov.uk/ons/rel/rsi/retail-sales/september-2012/stb-rsi-september-2012.html [Accessed 15 October 2012] * Hausman. A., 2010. Perceptual Maps. [online] Hausman Marketing. Available from: http://www.hausmanmarketingletter.com/how-to-build-perceptual-maps/
[Accessed Oct 2012].
* KEY NOTE, 2012. Clothing retailing update marketing report 2012. [Online]. Richmond upon Thames: Key Note Limited. Available from: https://www.keynote.co.uk/market-intelligence/view/product/10551/clothing-retailing/chapter/3/executive-summary [Accessed 2 October 2012]
* KEY NOTE, 2011. IT Security Market Report 2011. [online]. Richmond upon Thames: Key Note Limited. Available from: https://www.keynote.co.uk/market-intelligence/view/product/10439/it-security/chapter/9/current-issues?highlight=hackers [Accessed 20 October 2012] References * WAKEFIELD, J., 2010. Old meets new in digital device. [online]. London, ENG: BBC News. Available from: http://www.bbc.co.uk/news/technology-11501622 [Accessed 11 October 2012]. * MINTEL, 2011. Fashion Online-UK-2011. [online]. London: Mintel Group Ltd. Available from: http://academic.mintel.com/display/545448/?highlight=true [Accessed 1 October 2012] Technological
Innovations * Has allowed ASOS to be innovative by making use of social networking sites and new technology such as the Facebook store, iPhone and iPad. * Increased competition due
to the Internet. * Proactive approach to new
technology to have an edge
over competition INFORMATION TECHNOLOGY INFRASTRUCTURE * Ability to trade online could be affected by system performance issues such as IT infrastructure failure or interruption * Back-up facilities
and recovery plans
in place * "The number of older people worldwide is growing faster than any other age group...within 10 years the number aged over 60 will pass one billion” (BBC News 2012):
- create concept store to educate older people on using ASOS
* Fashion industry neglects this area of the market:
- develop fashion line targeting grey market Current Share Price: 2285.00p ASOS Share price * OFFICE FOR NATIONAL STATISTICS., 2012. “Labour Market Statistics, October 2012”. [online]. Newport, South Wales: ONS. Available from http://www.ons.gov.uk/ons/rel/lms/labour-market-statistics/october-2012/statistical-bulletin.html#tab-For-June-to-August-2012- [Accessed on 9th October 2012]. References * OFFICE FOR NATIONAL STATISTICS., 2012. “Young people in the labour market.” [online]. Newport, South Wales: ONS. Available from http://www.ons.gov.uk/ons/rel/lms/labour-market-statistics/october-2012/statistical-bulletin.html#tab-Young-people-in-the-labour-market [Accessed on 9th October 2012].
* PLUNKETT RESEARCH., 2012. “Retail Industry Trends Overview.” [online]. Houston, TX: Plunkett Research Ltd. Available from http://www.plunkettresearch.com/retailing-stores-market-research/industry-trends [Accessed on 8th October 2012].