Wunderman Thompson Commerce Comments on Asos’ Interim Results
In light of Asos’ interim results, Hugh Fletcher, global head of consultancy and innovation at Wunderman Thompson Commerce, on what this means for the wider eCommerce retail sector.
Hugh Fletcher comments: “Asos’ interim results are unsurprising with the high-street closing its doors due to the pandemic and customers looked for alternative ways to update their wardrobe – and with Asos offering over 800+ brands on their site, it was a no-brainer for many to shift online. Moreover, consumers now expect retailers to have reliable online platforms and it’s no longer OK to be unprepared. Asos’ acquisition of Topshop earlier this year was evidence enough that the tables have turned in favour of the digital natives. It’s no wonder, then, that the popularity of fast fashion brands and online-only platforms, such as Boohoo and Asos, has skyrocketed; almost half (45%) of all fashion shoppers now purchase via digital pureplays, such as ASOS and Boohoo.
“However, if retailers and brands want to compete in the current market, one that is eCommerce first, they can no longer expect shoppers to forgive them for slow and unreliable services. This is especially true as two-thirds (69%) of fashion spending now takes place online and six-in-ten (63%) fashion shoppers are now more likely to buy online now than they were before the pandemic. There is a lot to be learned from how exceptionally well Asos has built its online offering. An easy-to-use UX design, affordable next-day delivery and increasing click-and-collect options all offers customers ease and efficiency. Asos’ breadth and agility also caters to fashion consumers who want ranges to change 17 times a year; strengthening their customer loyalty.
“And as a business, it has kept Asos’ revenue high and its reputation second to none in online fashion. It offers a stark warning to other retailers who fail to innovate and establish a digital offering in the same way.”