Company Overview
ASOS plc. is a U.K. based online-only fashion retailer. ASOS stands for AsSeenOnScreen. The company was founded in the year 2000, and in a span of 20 years it has become the largest online retailer in the U.K. The retailer sells brands from the biggest high-street brands across the world, as well as its own line of clothing ranging in all types of products.
As the modus operandi of the company is online only, it is highly dependent on its distribution system, which boasts a one-day delivery. It is currently operating and expanding in the Europe, U.S. and Australia regions. ASOS serves mainly those customers who are aged between 16 to 34 – the company names them as 20-somethings – and are internet-savvy has created a strong customer, base greater than 20 million, for the company. The company boasts to be authentic, brave and creative to its core, with all 4000+ of its employees (as of January 2020) putting themselves in their customers’ shoes and then coming up with creative solutions which would enthrall them.
Driven by its core values i.e. Authentic, Brave, Creative- ASOS' unique proposition for customers, focuses on designing and curating the most relevant fashion, face, and body products for every fashion loving 20-something and amuse them with delivering compelling, friction-free digital experiences.
Exclusive product range, brand choices, and consistent innovation continue to differentiate ASOS’ from its competition thus presenting a competitive advantage to the company.
ASOS' USP or Unique Selling Propositionsprawls in being UK's largest independent online and fashion beauty retailer and one of the world's leading brands in the lifestyle and retail sector, as of 2020.
ASOS’s mission statement is “To become the number one destination for fashion loving 20-somethings.” ASOS’s vision statement is “To empower 20-somethings to look, feel and be their best so they can achieve amazing things.”
SWOT Analysis of Asos
ASOS is a one-stop fashion destination that offers more than 85,000 products from its own collections and other leading brands, that can be bought from anywhere in the world. To encompass everycorner of the world, ASOS has stepped up the pace of transforming their digital and logistics abilities. ASOS' official website and apps are more localized and personalized with shopping made accessible in 12 linguistics and 19currencies.
Thus, the SWOT tool helps to benchmarkASOS' business and performance along with identifying its competitive stance in the industry. The SWOT report depicts all micro and macro factors and influencers that have a tremendous impact on ASOS' business model, business, and marketing strategies. The SWOT analysis manifests a discussion on all the pertinent factors specifically the strengths, weaknesses, opportunities, and threats that predominate ASOS' internal and external environment respectively.
Operations in more than 200 countries, strong international supply chain, innovative marketing strategies, strong connect with 20-something on social media platforms, availability of 30+ sizes at same prices, gender-neutral collection, positive brand image, a proud partner with GLAAD (one of the biggest voices in LGBTQ activism), focus on fashion with integrity, etc. are some of the biggest strengths of ASOS.
ASOS free shipping strategy is a key feature that allows the company to reach every corner of the world. However, it is also a weakness of the company as the free shipping strategy can hit the margins and increases overhead expenses when products are returned.
Steadily changing fashion trends, wavering buyer preferences, improving incomes, choice of better lifestyles, and advancements in technology formulate huge growth opportunities for ASOS. In order to embrace these opportunities and enhance its business operations, ASOS can expand its product portfolio, add more variety to its product line and invest in technical innovations. Being in a highly competitive industry, ASOS encounters competition threats from top retail players in both online and offline segments who have better brand recognition than that of ASOS.
The SWOT analysis for ASOS is presented below in a matrix followed by detailed analysis:
In order to get the detailed complete SWOT analysis of ASOS, please visit:https://www.swotandpestle.com/asos/
PESTLE Analysis ASOS
Currently, the global market for online fashion is worth £220 bn+ and is expected to grow to $872bn by 2023. This steep growth in the industry is governed by various factors and social trends like COVID-19 outbreak leading to the shutting down of offline retails consequently increasing online shopping, shopping on the go with voice-based searches, growth in e-commerce sales via mobile, buyers concerned about sustainability demanding ethical brands, surging influence of trending hashtags like #fashion and #OOTD(Outfit Of The Day) on Instagram, etc.
The PESTLE tool helps to study more such trends and influencers that impact the online fashion industry and widely ASOS. The PESTLE / STEEPL / PEST analysis report is a structure to examine the consequence of external factors on the macro-environment of ASOS. The PESTLE analysis is a useful technique to study the impact of factors like political, economic, social, technological, legal and environmental on ASOS’ business model, growth trajectory, its business case, and market strategy.
Various macroeconomic and geopolitical factors influence the ASOS business, its operations, financial conditions, and the ability to trade across borders. Some of the key economic and political factors are trade wars, Brexit as a current geopolitical uncertainty, economic crisis due to coronavirus outbreak, and volatility inforeign exchange rates.
Digital transformation and technological advancements have been a boon to the fashion industry and largely ASOS. In U.K. customers' preferences are changing and online shopping has gained tremendous prevalence over shopping in malls, specially in the wake of the outbreak of the novel Coronavirus. ASOS being the leading online player in the U.K. market has gained huge popularity and success. Being one of the most polluting industries, the fashion industry faces strict legal compliances related to the protection of the environment. However, ASOS' business model focuses on attaining growth while appending social value and lessening its environmental impacts. Since ASOS is purely an online company its biggest environmental impact is carbon emissions from the shipment of their goods, the running of their factories, and packaging waste. Thus, ASOS's Carbon 2020 strategy, aims at reducing carbon emission, depreciating energy consumption, and boosting renewable sources of energy.
In order to get the detailed complete PESTLE analysis of Asos, please visit:https://www.swotandpestle.com/asos/
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- Value chain analysis,
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