What Risks Do You Anticipate as Asos Expands Overseas?

What risks do you anticipate as ASOS expands overseas?

In such a changeable industry, ASOS have to continuously change its market segment. However, there are also risks that have to come in hand with the expansion internationally, which could be;

1. Increasing of personalized content to keep in mind of different locations, cultures, climate and buying habits.

2. Things as trial and returns are more complicated.

3. The challenges in dealing a huge mix of customers that could become loyal, at each one on its own level.

4. Broadening delivery channels, as new ones also need to be created, and new management for each part needs to be recruited.

5. The needs of maintaining quality control standards in mass production.

ASOS is less well known outside Europe. GAP and ZARA are the main competitors of ASOS as they also have online shopping platform, and they are well recognized all over the world in compare to ASOS. In order to be popular all around the world, ASOS has to target new segments and build the loyalty around the world. ASOS is starting to gain popularity in Australia and USA as they opened their new offices there. With further expansion of ASOS, they should start to consider making more warehouses around the world. Most of their products are made in China, Eastern Europe or many other low cost countries, and are then shipped to the UK. They could be more active on social networking sites, by posting videos on You-Tube in different languages, so people can get engaged to them. Social networking can be a problem at the start.

Besides, CRM can be a major problem as well. The main problem would be to create loyalty to the customers, a way to enhance Customer Relationship Management (CRM) system is to give the customers loyalty program. ASOS can also enhance CRM for some promotional engines like interest graph. Customer’s interest can be measured through Business Intelligence Data collected online. As ASOS target markets are same in UK and some other countries, if ASOS has to go worldwide, it has to change and expand their target audience from youth to everyone, to attract all demographic segments. ASOS would face many competitors around the globe, as there are many fashion websites similar to ASOS, like GAP and ZARA.