Case asos Essay

As Seen On Screen launched as an online retailer in 2000 and is now the UKs largest online fashion and beauty retailer. The company now has over 35,000 branded and knowledge label products available. ASOS has websites designateing the I-JK much of Europe, USA, and Australia and ships to over 190 other countries from its central distribution centre in the I-JK. ASOS has been progressively made through marketing their products and brands online without the deftness of a physical store like rivals such as Topshop and River Island.There are a number of component parts which have contributed to ASOSs success ncluding no limitations on place to display items the website is easy to navigate around its accessible 24 hours a day and asshole cater to busy lifestyles ASOS runs promotional exserts for students which is a large part of their target sense of hearing as teenage adults and it alike plays host to a number of popular high roadway brands such as River Island and French C onnection. ASOSs sole online presence means it has no limitations on piazza or stock contradictory physical stores and it is thitherfore easier to display a larger drift of products in a single place.This factor means that ASOS faeces target a larger loving demographic as hey can offer a larger range of products. There main demographic is a low-middle class, 16-25 age group with a sm on the whole-medium disposable income. They especi tout ensembley target this audience through their own brand. However, because of ASOSs online presence and unlimited space they are also able to offer premium and luxury brands as intimately as second-hand and vintage clothing appealing to a broader market.In terms of behavioural segmentation, the consumer behaviour of ASOSs prime target audience has changed over years and it has become increasingly difficult to shop within allocated opening times that physical stores are restricted too. Online retail means mess can shop from their home or offi ce or any other location from a computer, tablet device or smartphone and network access. The product range that can be found on the ASOS website is more extensive than most competitors as from thither own brand to hosting other brands such as French Connection and River Island.The fact that they can host a wide range of brands adds to the convenience factor for shoppers as they are able to vagabond several brands by only visiting one site. The ranger of low-end premium brands that are offered ensures in targets all markets and can easily meet client needs. roducing short videos of models in products to help customers further scrutinise a potential purchase. This helps to convince people that an item is right for them and combats the inability to try before you buy.This provided specialty from their competitors and also almost eliminates the need to purchase goods physically. From a marketers point of view, ASOS having a presence solely online is has an favor for a number of r easons. Firstly, they dont have the cost of overheads that a physical store would. Secondly, through marketing products online there is more opportunity to embellish and target other markets. A strong online presence is an easy style to target global market from one base this is illustrated as much of their sales and revenue increase is due to international expansion.It also allows them to extend their range to children, men and other countries while taking into love geodemographic segmentation as some places have different cultures, religions and climates. However, although marketing fashion online can be very(prenominal) beneficial it does have some disadvantages. One disadvantage is the returns of products are higher than physical stores this is probably because consumers are not able to try before they buy. However ASOS do what they can to keep this to a token(prenominal) and have been successful as they have lower returns than most other catalogues.This could be due to catwalk facility or sales of brands that are also available on the high street so people may have seen them physically in-store for example, River Island. As ASOS do not have a high street presence they need to put in more effort to enhance its brand recognition which mayhap means spending more money on advertising & marketing specific items. Almost all of ASOSs main competitors have some(prenominal) physical and online access which could put ASOS at a disadvantage.Finally, there will be some consumers that would fall under ASOSs target market that will never be influenced to buy online and this is w hen a physical store would be beneficial. ASOS have a strong, loyal customer base with positive reviews and feedback on the excellent service they provide and their diverse, up-to-date range of products. ASOS are also recognised as an ethically involved brand promote social responsibility this all draws unused consumers and ensures their brand and products are displayed in the best possible light.An issue that may concern some consumers hen it comes to online retail is the delivery and returns however ASOS has maintained an excellent reputation for speedy and convenient returns as well as smooth, easy and free returns. ASOS have also proven to be very innovative with successful mobile interfaces, an app, and online and print magazine providing a variety of platforms to showcase their products consistantly and rapidly while also foreground popular products, competeitions and promotions.It also ensures their audience have even easier access to products while on the move over again catering to the lifestyles and behaviours of their segmented market. ASOS take advantage of this. So far, they have been successful at interacting with their customer via social media, blogs and their website. Many of its competitors for example HM (who have the biggest facebook shopping fanbase) and Zara already have a strong social media presence so ASOS need to ensure it remains at the forefront.Although ASOS have many strengths there are also threats that could tarnish their reputation for example the fact that they sole trade is online could be seen as a major risk if they were to be affected by IT failure something ASOS have no control over. Ultimately this could mean loss in sales and reputation as a reliable website. People generally have concerns regarding the increased risk of online hacking, ASOS could have something in place for this.Finally, there is festering competition online as competitors are becoming more aware of success online has to offer and therfore ASOS need to remember of ways to differentiate their brand. There are areas where ASOS are at a disadvantage to their competitors for example, their lack of brick & motar with no physical shop to display products. As a result, ASOS would only be suitable for people with meshing access. There is also no facility to try before you buy which may make their audience reluctant as they may be concerned about the ease of returns despite reviews.The ASOS website and product range is also quite extensive and could become overwhelming. Despite ASOS growing success, especially in the current recession, they close up have opportunities to build their brand and expand. It would be beneficial to target customers outside of its usual market and expand on male ranges and plus size ranges as there is a growing market for both of this areas. There is also a variety of ways to ship goods cheaply now and it would be beneficial o explore these and offer them to their customers.