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Lewis Sunday, 4 December 11


A Bit of Background 2000 - Founded by Nick Robertson 2001- Admitted to AIM London as ASC:Lon 2004 - Own brand for women launched 2004 - First profit made 2006 - Launched ASOS catwalk 2007- Own brand for men launched 2010 - Achieved Carbon Neutral Company status 2010 - Started going Global 2010 - Went Mobile 2011 - Continued the Global expansion

Lewis Sunday, 4 December 11


Market Trends Online shopping is preferred to high street shopping Online and catalogue sales are up 13.7% ASOS had very successful first half of 2011, very poor second half which reflects the current market situation This is caused by rising prices – sales value has increase/volume of sales relatively unchanged Inflation had risen to 4.5% in August 3 months leading into June saw 15% growth

Murray Sunday, 4 December 11


Market Trends 2 This graph represents the confidence of customers in the UK over the last

Over 5 years It shows that customers have lost confidence in the UK retail market

Murray Sunday, 4 December 11


Marks & Spencer plc

Claims to be the UK’s largest distributor of clothing Over 600 UK stores. Individual lines : Autograph, Big &Tall, Per Una Over 300 international stores in 40 different countries. M&S opened in Cairo. With further plans to enter into wealthy European cities. Pre-tax profits decreased by 0.5% from £706.2m in 2009, to £702.7m in 2010.

Jessica Sunday, 4 December 11


Matalan Retail Ltd. One of the leading discount retailers. Around 205 stores in the UK Range of own-brand collections designed for specifically targeted consumers Matalan opened a new model store in November of 2010, to help customers differentiate between different departments, creating an easier-to-navigate shopping experience. In November 2010, Matalan aired its first television advertisement in 4 years. Pre-tax profits increased by 91.8%, from £53.8m in 2009 to £103.2m in 2010.

Jessica Sunday, 4 December 11


New Look Retail Group Ltd.

Focus on selling new fashion at value prices Target: Women 16-45. The New Look chains focus on clothing, accessories and footwear for women New Look also specialises in certain sectors, including larger clothing sizes for women Over 1000 stores worldwide. Pre-tax profits increased to ÂŁ36m in 2010, from ÂŁ2.6m in 2009

Jessica Sunday, 4 December 11


Arcadia Group Ltd.

Very broad variety of shops, therefore covers most of the target markets, most common is the 16-38 year old, which is the same to ASOS. It is a British company that owns Burton, Dorothy Perkins, Evans, Miss Selfridge, Topman, Topshop, Wallis and BHS. Most of the brands have both online shopping and physical stores. Last year it has had a pre tax profit of ÂŁ133.1m with total sales of ÂŁ2,682.5m.

Cameron Sunday, 4 December 11


French Connection Can be used online and in store It Currently has 2,834 employees Similar Target market to ASOS, young fashionable men and women Similar pricing to ASOS, as many FCUK products are actually sold on ASOS. This also means that the regular customers on ASOS, will also be regular for FCUK. Revenue of ÂŁ213.8 million (2011) Current share price is 71.25p

Cameron Sunday, 4 December 11


House of Fraser Annual sales in excess of £1.3bn 62 stores in the UK & Ireland Rapidly growing web-store 5,200 House of Fraser staff & 11,000 concession staff Mainly expensive brands inside the store The stores are large departmental stores rather than small shops Have a FAST Delivery system, they try and ship worldwide as quick as they can They do not just sell fashion, they sell toys, home and furniture, and technology More expensive than ASOS as they have much more expensive brands on sale

Cameron Sunday, 4 December 11

10 Launched in 2006 Purely Online Oers the latest trends at aordable prices Also has a 9 to 13 year old section for the younger girls Aimed directly at females, no male clothing at all Slightly cheaper products than ASOS Mainly based in the UK, but does ship worldwide to countries such as the USA and Australia

Cameron Sunday, 4 December 11


A Typical Outfit Item of Clothing


Marks and Spencer


New Look

Arcadia Group

French Connection

House of Fraser


Plain T-Shirt









Skinny Jeans









Ballet Pumps









Total Cost









Jessica & Cameron Sunday, 4 December 11


New Markets in UK ? Areas to exploit Over 20% of their current customer database is over 35. - However are they shopping for themselves? Only sell 2% of beauty products out of their total sales. - Is it too competitive a market? Just 17% of their total sales is menswear. - How are they trying to change this?

Matthew Sunday, 4 December 11


New Markets in UK ? Can it be successful? There were 26 million UK online shoppers in 2007 ASOS revealed in June this year that it wants to focus on increasing the number of male shoppers and has plans to achieve £1bn in sales by 2015. In 2010, BPS and IMRG revealed that an additional 3.7 million people have become online shoppers during the past two years. Challenge to market for men, CEO Nick Robertson says “Men don’t tell their friends where they shop like girls do. It will be a big challenge for our marketing team this year

Matthew Sunday, 4 December 11

to crack this one.” 14

Potential Markets Older Market - As UK population get older the size of the market increases with greater potential

Men’s Market - For many years overlook compared to women, however men are becoming for fashion conscious.

Children's Range - Many retailers have brought out designer children's lines which - a potential market to exploit

Lewis Sunday, 4 December 11


Global Shopping Basket






Lewis Sunday, 4 December 11


B.R.I.C. Economies





Jessica & Matthew Sunday, 4 December 11


International Competition Large amount of competitors in the US, however an online fashion experience may be successful as there are little purely online fashion websites. This does mean that US customers are very used to going to stores rather than purchasing the products online.

Western Europe would also be a viable market to target as it is also very fashion conscious. Also there is little competition in terms of purely online fashion websites, therefore ASOS could succeed greatly here.

Cameron Sunday, 4 December 11


Technological The basic look of the website stay a constant across the world Dierent Countries have dierent technological infrastructure

Russia and India are relatively lower technologically across the whole population than western europe

ASOS joined the App revolution, customers had ability to

Lewis Sunday, 4 December 11

purchase on their smart phone 19

Recommendations We believe there is no one market ASOS should target in the next year.

Due to the current European Financial crisis it may, risk adverse to secure european and UK market.

Our recommendation is use the basis of fashion - Tailor the product/service to meet the expectation of customer world wide

Sunday, 4 December 11


Any Questions ?

Lewis Sunday, 4 December 11


ASOS Presentation  

Week 11 - Group Presentation