asos strategic report

Luke will step down from the Board on 31 October 2022 and Eugenia will step down at the close of the AGM. London Revenues rose to 3,910.5m, delivering an adjusted pre-tax profit of 193.6m, a rise of 22% and 36% respectively. Overview ASOS delivered a strong performance across the year as we navigated the . I would therefore like to start by thanking our dedicated and hardworking ASOSers, as well as our shareholders and partners, for their continued strong support. They now have over 250 employees, up from 47 when they first founded the company. 487 0 obj <> endobj endobj Celebrities, to state the obvious, are always a hot topic. It uses a wide variety of images and stylish displays for building customer engagement. I want to thank Nick Beighton, who has stepped down as Chief Executive Officer (CEO) after 12 years with ASOS and six as CEO. For apparel, they have big brands like Nike, Adidas, Calvin Klein, and so on, and for beauty products, they have Bourjois. Required fields are marked *. Finally, I'd like to take this opportunity to wish the team at ASOS, all our suppliers and brand partners, our valued customers and our investors the very best for, ASOS has achieved a great deal over the past year. Based on an analysis of the best market opportunities, marketing strategy defines target markets and the value proposition that will be offered. This strategy has helped ASOS not only to sell its products but has also made it the best online mode destination. Site traffic saw a significant step-changepost-acquisition with a further step up after relaunch, driving strong sales momentum. Following the acquisition of the Topshop brands in the first half of this year, we have integrated at pace with supplier onboarding, transition of the brand team, and re-initiation of wholesale sales to Nordstrom, all completed in the second half of the year. ASOS brings its products to life through these channels. When we announced the acquisition, we indicated that we expected a ramp up period in FY21 while we transitioned stock to our warehouses, onboarded new suppliers, audited and rationalised the supplier base and built out the Topshop range and, in light of this, we are pleased with the performance of these brands to date. The marketing mix refers to the various areas of emphasis through which a company promotes its brand or product in the market. We are an online retailer for fashion- loving 20-somethings around the world. This strategy has helped ASOS not only to sell its products but has also made it the best online mode destination. Now that weve analyzed the digital marketing strategy, let us look at the SWOT analysis of ASOS and better understand the brands strengths, weaknesses, threats, and opportunities. The brands continue to perform strongly on ASOS.com, with sustained triple digit sales since acquisition driven by strong performance across the UK, US and Germany. Digital marketing, also known as online marketing, is the promotion of brands to connect with potential customers via the internet and other forms of digital communication. Attend our Free Masterclass with Karan Shah, CEO of IIDE, to gain hands-on experience with digital marketing. Your email address will not be published. Every day they vote for us with their orders. Now that weve analyzed the digital marketing strategy, let us look at the SWOT analysis of ASOS and better understand the brands strengths, weaknesses, threats, and opportunities. We announced ambitious new 2030 ESG goals at our recent Fashion with Integrity Capital Markets Event. Change for Ice Pellets. Content is the primary factor that contributes to its successful promotion through the digital platform. in the second half, but our consumers were still largely unable to participate in activities that drive demand for fashion. P4 underlying total sales growth of 15% in line with guidance: EU most impacted by global supply chain challenges; RoW hit by COVID-19 related disruptions to our delivery proposition, Gross margin down by 200bps to 45.4%, driven by elevated freight & Brexit-related duty costs, product mix, FX headwinds and increased customer investment, Adjusted PBT of193.6m(including estimated67.3mCOVID-19 benefit), Adjusted PBT exc. New Softcat CFO Katy Mecklenburgh to start in June, JD Sports hires Currys Chair Ian Dyson as non-executive director, Citigroup cuts Admiral; Jefferies likes PPHE. ASOS plc is a British online retailer of fashion and cosmetics. This campaign was a huge success because it used a combination of ASOS and creator-commissioned content to drive brand recognition and awareness. More information can be found on pages 30 to 33. and merchandising system (TGR), opening our new UK warehouse in Lichfield, and the automation of our US fulfilment centre in Atlanta. ASOS is a leading fashion e-commerce retailer based in the United Kingdom. It uses a wide variety of images and stylish displays for building customer engagement. Partly through marketing strategies focusing on brand awareness and popularity such as: Now that weve grasped the brands marketing strategy, lets move on to the 7 Ps of ASOSs marketing mix in the section below. Taken together, the result is a well-controlled global online retail operation that performs increasingly efficiently and with agility and resilience - qualities that have proven themselves invaluable over the last year and will continue to serve us well as we move forwards. An ASOS homepage takeover, out-of-home advertising in London and New York, and social assets featuring Queen B were all part of the brands collaborative marketing efforts. We're also committed to continuing to improve how our products are presented, with new styling and doubling down on our influencer campaigns over the next 12 months. A reflection of our achievements is not only seen in our increased sales, but in our higher customer satisfaction scores, and looking ahead, we will continue to focus on the customer experience to drive further growth. I am delighted to report that most recently the Foundation made a 1.2m commitment to co-fund Yorkshire's first OnSide Youth Zone in Barnsley, where we are the largest private employer. The company has employed around 4000 employees with major population is employed in Barnsley Town Market Environment Overview The product is shipped to their addresses once payment is received. Content is the primary factor that contributes to its successful promotion through the digital platform. Calculated as last 12 months' total orders divided by active customers. This was mainly due to the strengthening of the pound against emerging market currencies - primarily the Russian Rouble, which devalued by 15% across the year. Final Results for the year to 31 August 2021, ASOS delivers strong financial results %PDF-1.7 As detailed in a separate release today, ASOS has announced a number of Board changes to deliver the next phase of global growth: Clear plan in place to deliver7bnof annual revenue within the next 3 to 4 years. With an excellent marketing strategy, advertising campaigns, and SWOT analysis, the brand has been able to stay at the top of its game and with this, we have concluded the case study of ASOS. This performance is based on the hard work and determination of all ASOS-ers and I want to thank them for everything they have done. We also continued to see improvements in other operating costs which reduced by 250bps to 9.8% supported by non-strategic cost removal of c.30m for the year and increased leverage across our fixed cost base. Now that we have seen some successful campaigns by the brand, let us take a look at the successful digital marketing strategy of ASOS. Adjusted EBIT (including the COVID-19 related tailwinds) grew to 206.6m, reflecting growth of 37% on the prior year, with adjusted EBIT margin of 5.3% representing 70bps margin expansion on the prior year. 2 Did you like our work? The two-week social-led campaign aimed to raise awareness among clients in the United Kingdom, the United States, and Germany via YouTube, TikTok, Snapchat, Facebook, and Instagram. For 20 years old, ASOS is an online fashion destination. ASOS is pleased to announce its industry-leading Fashion with Integrity ("FWI") 2030 programme, laying out a comprehensive plan to achieve a new set of stretching ESG goals by 2030. As a result, it ensures that everyone has an equal opportunity to discover all of the amazing things they are capable of regardless of who they are, where they come from, or what they look like to boss. In February 2021 ASOS took over from the collapsing Phillip green Arcadia Group Topshop, Topman, Miss Selfridge, and HIIT brands, resulting in global expansion. The brand offers a wide range of products. Strong development of the ASOS platform, with further category development and additional capabilities: Face + Body growth of 49%; now a150mbusiness, ASOS platform enhanced with the deployment of 'ASOS Fulfils'to the UK, Russia, France, Italy and Australia, Integration of Topshop brands with sustained triple digit sales growth since acquisition. We hope you found this blog to be informative and beneficial. ]Zf~qDQ/l7YBtt"/;0PdEqModLp6gw. Our customers increasingly want to express themselves individually rather than follow trends, seeking out brands that feel authentic and have a purpose. He joined a start-up business and leaves an internationally-focused business with over 26m customers in 200 markets around the world. Advertising campaigns are critical to the success of any business. Asos Plc acquired the Topshop, Topman, Miss Selfridge and HIIT brands, some six months ago, and has been including transforming and integrating the digital experiences of the new entities its own. Now let us summarize it in the conclusion section below. With a reduction in event-led shopping continuing throughout most of the year, we continued to see an impact on churn, with low frequency occasion wear shoppers dropping out the base, particularly. Strong execution with continued discipline and operational grip: c.30mof non-strategic cost removed, cumulatively80mto date since FY19, Lichfield fulfilment centre opened successfully, providing incremental capacity for peak, TGR system implemented and embedded across the business, Strategic partnership established with Nordstrom to help drive growth of Topshop brands in North America, ASOS brands to be sold in select Nordstrom stores and on Nordstrom.com; first product to be sold by calendar year end, followed by a full launch in the first half of 2022, Click and collect services to be rolled out across the wider Nordstrom estate in 2022, Launched Fashion with Integrity 2030 programme with ambitious new ESG goals, Investing to capture growth despite short-term headwinds. Skip to main content. Leavesden, near Watford, in the southwest of Hertfordshire, is the customer service department. Depreciation and amortisation fell by 10bps as a percentage of sales as we leveraged our existing fixed asset base to drive higher sales, while Lichfield went live on 28 August 2021 meaning there was only a minor depreciation impact in FY21. My thanks also go to Eugenia Ulasewicz and Luke Jensen, Non-executive Directors, who have decided not to seek re-election at the Company's next Annual General Meeting (AGM). We integrated and relaunched the brands in three weeks - with one-off costs of just 10.5m, half the cost originally expected. I have been clear here about the unprecedented geopolitical and macroeconomic challenges we face and what we need to do to change ASOS for the better. People interact with ASOS at their leisure because it is an internet-based company. Ian is the right candidate to oversee the next phase of growth, working with the existing Executive team to support the delivery of the global growth strategy. Investing for growth despite short-term headwinds Registered in England 4006623 We know that over the past 18 months, our ASOSers' lives have been turned upside down, yet their resilience and commitment have allowed us to regain our growth momentum and I would like to thank them, but also show them that our purpose extends to them - helping them to be who they want to be. After they have paid for the product, it will be delivered to their registered address. The primary goal of a SWOT analysis is to assist organizations in developing a complete understanding of all the factors involved in making a business decision. We saw a step up in promotional activity due to competitive pressures in RoW and as we invested for growth in key markets, along with price investment into Europe and the US, which we were able to fund through improved intake margins. Finally, as we enter the new financial year, I would like to thank our customers for their loyalty and commitment. Jrgen is currently the Chair of Miinto, the Danish-based online fashion marketplace, and was formerly the President and CEO of Modern Times Group (MTG), the Swedish-based digital entertainments business, and recently stood down from the Board of Zalando following five-years as a Non-executive Director. They have mid-season and end-of-season sales where they sell a product at heavily discounted prices. First Republic Bank erases plunge and soars 28% on report of deal talks with larger banks. These investments were partially offset by an improved buying margin, reflecting our continued progress in this space. Please visit our website. SAC developed a set of standardised sustainability measurement tools, which we've been using since 2016. To try new things. 4 0 obj The website sells over 850 brands as well as its own clothing and accessories, and ships to all 196 countries from fulfilment centres in the United Kingdom, the United States, and Europe. 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