Blog: Leonie BarrieAsos a runaway success

Leonie Barrie | 20 January 2009

If both young fashion and the internet are two of the more resilient retail sectors at the moment, then it’s probably no surprise that Asos managed to rack up a whopping 118% year-on-year rise in sales for the nine weeks to 16 January.

 As older consumers cut back on their spending amid worries about falling house prices, redundancies and fears of recession, younger shoppers – Asos targets 16-34-year-olds – seem more concerned about emulating the fashions worn by pop stars and celebrities.

Asos started out selling celebrity-inspired items As Seen On Screen, although it has now branched out to include branded lines as well and claims to be the UK’s largest online fashion and beauty store with more than 1m visitors a week.

And analysts see further opportunities for growth as consumers become more discount focused, more brands sell their products on the site instead of developing their own online presence, and international sales continue to soar.

If there are concerns about its trading, they focus on the fact that product promotions and a number of free delivery weekends in the run-up to Christmas had impacted margins. And that the firm didn’t provide an upgrade for the current year other than to say it expects full-year profit to be in line with expectations.

But if this is as bad as it gets, then surely in the current economic climate Asos must rate as one of the industry’s runaway success stories.


UK: Online retailer Asos doubles Christmas sales


Ethiopia unrest a sourcing risk?

Fashion retailer H&M and UK based glove and leather manufacturer Pittards both say they are monitoring the situation in Ethiopia closely after the country's government declared a state of emergency af...


Asia facing up to increased competition

Increasing competition for garment sourcing contracts is seeing China not only being challenged by other countries in Asia, but by sub-Saharan African and even Russian suppliers too. And it is pushing...


Cambodia raises garment worker wages

The monthly minimum wage for workers in Cambodia's textile, garment and footwear sector is set to rise to $153 from January next year, following a vote on the issue last week. The increase marks a ris...


Sportswear initiatives start to take shape

The results of two highly-anticipated initiatives in the sportswear sphere were revealed last week: the launch of Under Armour’s new UAS lifestyle brand and the first pair of running shoes created at ...

just-style homepage

Forgot your password?