Asos' Advance in Asia
Written by Wendi Chang
Image from asos.com
Asos' stock continues to rise as they move forward in their journey to be "the number one online fashion destination for twenty-somethings, globally", says founder and CEO Nick Robertson. The group's revenues jumped 33 percent to 359.7m pounds for the six months to February 28. At the same time, they provided additional details on their expansion to Asia.
Forty percent of Asos' sales are generated in the UK, and their international businesses in US, Australia, France and Germany are growing steadily. "Our next focus is on 'tactical' countries", said Robertson. The Russian site will launch this month, and the People's Republic of China will soon follow. Although not expected to generate a profit for two years, the investment in China is a key part of the company's global quest - and the company is taking the time to do it correctly. Separate technology, stock and a distribution hub are all part of the approximate 5m pound a year setup cost.
In the meantime, the UKs largest online-only fashion retailer is aggressively expanding their unique online trading platform, BOUTIQUE. Independent label and vintage specialists from around the world, including Asia are featured. Fabitoria, a Taiwanese brand, was recently approached by asos.com to be part of the marketplace, which they joined this month. The global exposure for local brands will be significant, and it allows Asos to test product in each market before entering in a larger way - a win-win situation with better visibility for both asos and the marketplace brands.