The rise and rise of Asos

Euromonitor International 16 June 2010

Established in June 2000, the UK-based pure e-commerce retailer Asos has developed quickly. In its recently announced 2010 financial results, the company revealed that sales had reached £223 million, up 35% over the course of the year. While Asos's home market of the UK accounted for the vast majority (72%) of turnover, the pace of sales growth, albeit from a low starting point, in its international markets is likely to please the company and provide it with continued growth over the longer term. Implications for Asos: • Asos is riding the wave of growing consumer interest in buying clothing over the internet. Meeting shoppers' demand for fashionable clothing they can return easily is proving increasingly popular, and with international expansion still only partially realised, the company is expected to continue to enjoy strong sales growth over the medium term.

Implications for competitors: • As Asos continues to grow, it is putting pressure on clothing specialists, especially those offering on-line shopping. While it used to be suggested that the internet did not offer clothing retailers the same opportunities as retailers of electrical products, Asos has shown that this is not the case. Given this, clothing and footwear retailers must start to compete on-line, not just in store.

It has been up, up and away for Asos's sales in recent years
During the 12-month period ending 31 March 2010, Asos saw sales grow by 38%, although this was split between the company's home market, where sales advanced by 22%, and internationally, where they surged by 103%. Asos has been boosted by an increasing number of visitors to its site, with nearly eight million viewing the site in March 2010 alone, and the rising value of each consumer's basket, which increased by £10 between March 2009 and 2010, reaching