ASOS plc.

    ASOS plc. SWOT & PESTLE

    • Report

    • ID: 529902
    • 22 Pages
    • September 2023
    • Region: Europe
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    About ASOS plc.

    ASOS plc. is a U.K. based online-only fashion retailer. ASOS stands for AsSeenOnScreen. The company was founded in the year 2000, and in a span of 23 years it has become the largest online retailer in the U.K. The retailer sells brands from the biggest high-street brands across the world, as well as its own line of clothing ranging in all types of products.

As the modus operandi of the company is online only, it is highly dependent on its distribution system, which boasts a one-day delivery. It is currently operating and expanding in the Europe, U.S. and Australia regions. ASOS serves mainly those customers who are aged between 16 to 34 – the company names them as 20-somethings – and are internet-savvy has created a strong customer base greater than 26.4 million, for the company. The company boasts to be authentic, brave and creative to its core, with around 3300 of its employees as of 2023 putting themselves in their customers’ shoes and then coming up with creative solutions which would enthrall them.

Driven by its core values i.e. Authentic, Brave, Creative- ASOS' unique proposition for customers, focuses on designing and curating the most relevant fashion, face, and body products for every fashion loving 20-something and amuse them with delivering compelling, friction-free digital experiences.

Exclusive product range, brand choices, and consistent innovation continue to differentiate ASOS’ from its competition thus presenting a competitive advantage to the company.

ASOS' USP or Unique Selling Proposition sprawls in being UK's largest independent online and fashion beauty retailer and one of the world's leading brands in the lifestyle and retail sector.ASOS’s mission statement is “To become the number one destination for fashion loving 20-somethings.” ASOS’s vision statement is “To empower 20-somethings to look, feel and be their best so they can achieve amazing things.”

    Business Sector

    Fashion products and retail

    Operating Geography

    Europe, U.S., Australia

    Revenue

    £ 3,936.5 million – FY ending 31st August 2022(y-o-y growth of 2%)

    £ 3,910.5 million – FY ending 31st August 2021

    SWOT

    SWOT Matrix for ASOS

    Strength

    Weakness
    1. Demonstrates resilient financial performance amid challenges:
    2. Focused on delivering best-in-class customer experience
    3. Strong customer loyalty in U.K.
    4. Authentically and ethically sourced products
    1. Financial struggles and fundraising challenges
    2. Complex third-party brand relationships and supply chain vulnerability.

    Opportunity

    Threat
    1. Scalability of platform across markets
    2. Technological investments to improve customer experience
    3. Fostering brand expansion and engagement:
    4. Seizing sustainable fashion opportunity through harmonizing consumer demand and eco-consciousness
    1. Cyber threat and data security
    2. Impact of foreign exchange fluctuations
    3. Intensified competitive landscape and market dynamics:
    4. Navigating evolving sustainability imperatives.

    Detailed SWOT Analysis of ASOS

    The detailed SWOT analysis for ASOS plc. is presented below:

    Strength

     
    1. Demonstrates resilient financial performance amid challenges: ASOS maintains strong financial performance with impressive 105% YoY sales growth, showcasing its market dominance. Despite challenges, the company remains resilient, achieving substantial revenue of £3,936.5m. While adjusted profit before tax declined to £22.0m from £193.6m, ASOS effectively manages operations, significantly reducing operating loss to (£9.8m) from (£190.1m). The reported loss before tax stands at (£31.9m), reflecting a strategic approach to financial management. ASOS's ability to adapt and perform well in a dynamic market underscores its position as a leading online fashion retailer, poised for continued growth and success.
    2. Focused on delivering best-in-class customer experience: The most fundamental deliverable for an online-only fashion retailer is choice and quality of products. Equally important, but less stressed upon by most retailers, is the presentation of the product. ASOS has understood this trend well and strengthened both of these traits. The company boasts of using “real models”, with their real faces without any editing, to showcase its products. This gives the consumer a better visualization of how the apparel actually looks.

    Weakness

    This section is available only in the 'Complete Report' on purchase.

    Opportunity

    This section is available only in the 'Complete Report' on purchase.

    Threat

    This section is available only in the 'Complete Report' on purchase.

    PESTLE

    PESTLE Matrix for ASOS

    Political

    Economic
    1. Impact of Brexit on retail business
    2. Digital sales tax policy in the UK
    3. Impact of Russia-Ukraine war
    1. Global economy on high alert

    Social

    Technological
    1. Making e-commerce all inclusive
    2. Increasing popularity of shop-able social media posts
    3. The rise of gender-fluid fashion, challenging norms and embracing inclusivity in the fashion industry.
    1. Overhauling of supply-chain arrangements
    2. Rise of digital platforms for marketing
    3. Revolutionizing fashion through the impact of generative AI.

    Legal

    ENVIRONMENTAL
    1. Cyber threat and security of customer data
    1. Questionable practices in “fast” fashion
    2. Sustainability – a paradigm shift in retail

    Detailed PESTLE Analysis of ASOS

    The detailed PESTLE analysis for ASOS plc. is presented below:

    POLITICAL

    1. Impact of Brexit on retail business: According to Richard Lim, chief executive of analyst Retail Economics, there are three possible scenarios which could churn out. Firstly, a Hard Brexit, which would cost retailers as well as manufacturers to engage in commercial activities with the EU. Secondly, the UK could enter into separate bilateral free-trade agreements with individual members. Lastly, the UK could also choose to be a part of the customs union. Whatever path the government opts for, will lead to disruption in the apparel market. Prices of products will increase due to inflationary impact on wages of labors and employees. Secondly, manufacturers could incur huge costs in the form of tariffs and lost opportunity due to the new paperwork in case a no deal Brexit happens. Logistics would also take a hit. However, in case there is a decree to bring back jobs in UK, it could be the biggest loss for ASOS, relocating its manufacturing facilities in the EU region back to UK. In addition, since Brexit is still lingering and its degree of separation is uncertain, decision making for companies, including ASOS is becoming increasingly difficult.

    ECONOMIC

    This section is available only in the 'Complete Report' on purchase.

    SOCIAL

    This section is available only in the 'Complete Report' on purchase.

    TECHNOLOGICAL

    This section is available only in the 'Complete Report' on purchase.

    LEGAL

    This section is available only in the 'Complete Report' on purchase.

    ENVIRONMENTAL

    1. Questionable practices in “fast” fashion: The scenario in the online retail industry saddening, as they are accused of not following any sustainable practices. In order to grow at scale, online retailers are focusing on attracting customers by promoting products with as much discount as possible. Some of the products being sold on these platforms are so low on quality standards that they get rejected and thrown immediately, leading to a lot of waste. These practices collectively are termed as fast fashion. The UK government’s Environmental Audit Committee has put up an enquiry into the fast fashion retailers about the impact of their conduct on workers and environment in 2018. The committee wrote to UK’s biggest online fashion retailers, including Amazon and ASOS, and asked them how they have ensured that their practices are sustainable. It has made recommendations on how to reduce harm and wastage caused by cheap garment production. ASOS owned to its responsibility and agreed to cooperate with the committee. However, such practices by online retailers bring down trust levels of consumers. It is especially detrimental to ASOS’s brand image since its customer base of 20-somethings cares deeply about such issues.

    Table of Contents

    • Company Overview
      • 1.1 About the Company
      • 1.2 Business Sector
      • 1.3 Operating Geography
      • 1.4 Revenue
    • SWOT Analysis
      • 2.1 SWOT Table/ SWOT Matrix
      • 2.2 SWOT Overview
      • 2.3 Detailed SWOT Analysis
      • 2.4 Strength, Weakness, Opportunity and Threat
    • PESTLE Analysis
      • 3.1 PESTLE Table/ PESTLE Matrix
      • 3.2 PESTLE Overview
      • 3.3 Detailed PESTLE Analysis
      • 3.4 Political, Economic, Social, Technological, Legal and Environmental
    • Appendix
      • 4.1 Major Competitors
      • 4.2 Business Sectors / Diversification
      • 4.3 References used to prepare this reports
    • Conclusion
      • 5.1 Closing thoughts
      • 5.2 Methodology used to prepare this report
      • 5.3 Copyrights and Disclaimer

      References and Copyright

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