Asos Case

Introduction

Asos is an online fashion distributor, which was set up in 2000 by Robertson. The website offers to 20,000 products, the product range consist off many large designer brands and its own labelled products. Also it can be said it's a successful online fashion distributor, it's Uk's largest online fashion retailer, it also distributes in Europe. For this reason this is why I will be using them to learn why it has become a well-known online distributor.

The first part of this case study will explore the general knowledge on advantages and disadvantages of selling fashion items online. The second part of the case study will be swot analysis of asos to understand why they are also successful company. This will allow us to see what they can do to make the company more successful.

Part one: disadvantage and advantage of marketing online fashion item.

Marketing online especially fashion item is very difficult due to the fact that many factors can affect consumer behaviour patterns for this reason you will have to break each one down and understand each advantage and disadvantage of selling fashion goods online.

Advantage:

Fast-growing technology and consumer behaviour;

Due to fast-growing technology it has led to selling fashion items online easier and more convenient for the customer this because in the modern society of technology has changed the consumers behaviour pattern and made them more tech. also they are using technology in everyday life, for example shopping for clothes. This could be down to the fact it's more convenient and consumes less, and its at the click of a button.

Large consumer base:

You can reach a larger consumer base and international base by online distribution of fashion item; also it allows people in rural area's to buy from these online retailers because they aren't many retail shops in a commuting distance.

Placement of product:

Also it allows the companies to showcase a wide range of products because they isn't limited space online on their website, whereas in-store you have a limited area for each stock of clothing. We can see this in the case study where Asos has a wide stock off over 20,000 brands online if this was a store, you would only have a fraction off that eliminating many brands they sell.

Cost-effective:

Online E-sales are seen as cost-effective way to run a retail business because you only have to pay once for storage & regular payments to physical distribution. Unlike a company who would have to pay for the store or placement, a concession stand also to attract customers they will have to pay more money to set up a display in a prime location.

Disadvantage

The physical attributes and high returns;

It is easier and convenient to access online shops but people would still rather go to shops to physically use their five senses when buying clothing for example touching it, seeing the type off fabric it is and how it will feel & fit on their body. This is why the number off returns online are greater then 40% compared to retail shop. This is because when people buy items online, they can't try it on or view the product psychically till, it reaches their home. An when they try it on, an it doesn't look right or it doesn't fit right or the colour is different from how it was on-screen.

Physical distribution;

You physically can't have the product on the same day when buying online you have to wait till the next day for delivery or 4 to 5 working days for the product. Also to add to the next day delivery you will have to pay extra.

Consumer behaviour;

Customers have changed over the years due to technology but consumers still are purchase product looking at their price. Due to that customers are put off sometimes by paying extra for the handling of the product because it is a extra amount on top of the cost of the product which the might be able to get cheaper down the high-street.

Part two: Swot analysis on asos:

In this and the SWOT analysis will be looking at the strengths and weakness opportunity and threats of the company of the asos.

The strength of the company asos which have made it successful in the UK and in other 23 European countries are:

Celebrity looks:

The company ensures that when a celebrity is seen in a outfit asos make a lookalike of the outfit within four weeks to attract celebrity fanatics, who look up to the celebrity looks to buy their products.

A wide range of clothing