ASOS Adopts Low Price Strategy And Sales Market Is Favored.

According to a forecast by Bloomberg, ASOS sales in August will reach 1 billion 150 million in the current fiscal year. By 2020, this figure will also jump to 2 billion 500 million pounds. According to the latest report, as of February 28, 2015, ASOS Plc, the largest fashion business in the UK, fell 10% in the first half of the year, and its pre tax profit fell to 18 million pounds (166 million yuan), mainly due to its new low price strategy and capital invested in accelerating logistics services.

British High street fashion brand In recent years, the downturn continued. Last year, ASOS encountered a storehouse fire in Barnes, South Yorkshire, in the North Central England, causing the site to be shut down within 48 hours. Although ASOS has been doing well in the UK stock market, its share price surged to 71.95 in February 2014. But because of stronger sterling and increased competition, ASOS A series of profit alerts have been received, and its overseas market has been struggling for a long time, and the expansion of its brand has also been very difficult.

In the situation of increasing investment in international market infrastructure, we adopted a price reduction strategy, resulting in ASOS. Gross profit margin In the global market, it dropped by 2%.

But with the drop in profits, it is ASOS's confident investment plan and a bright market vision. Because in the half year of the report, ASOS sales in the UK increased by 27%, and international sales increased by 5%. Sales of ASOS rose by 14% as a result of the Christmas sales in 2014. In addition, promotional activities on Halloween and Valentine's day are becoming more and more attractive to consumers, which will also become the opportunity for ASOS to increase promotional activities in the future.

Although the increase in sales has not yet made up for the shortfall in profits, its share price has risen nearly 6% as ASOS's earnings report has been released recently. The best selling items of ASOS in the first half of the year were sportswear, underwear, shirts, sports shoes, and Oversized (oversize) coats and scarves.

"As we continue to invest in the international market and enhance our competitiveness through the strategy of reducing prices, business momentum is accumulating. This gives us full confidence in the profit of the second half and even the whole year, and they will meet our expectations. " ASOS's CEO Nick Robertson is very promising for its future development.

According to BBC, a Hargreaves Lansdown Stockbrokers stock analyst also said: "sales unexpectedly increased, which is a guarantee of annual profits." ASOS's active users have also increased by 13% over the past year, and mobile device access traffic has exceeded 50% of the site's access traffic. But this will, to a certain extent, make the actual purchase rate of consumers need to be recalculated.

At present, the sales performance of the international market seems to be constrained by the economic slowdown and the regional political turmoil, and the European market performance is the biggest. ASOS's turn to the emerging market is also twists and turns, Russia's sales decline due to the international situation 6%. It will take time to stabilize the Tmall in the Chinese market. ASOS launched the official website of China in November 2013, becoming one of the few foreign e-commerce providers in China to set up an official website, setting up an independent logistics center and inventory in China. In order to make up for the lack of physical shops, ASOS still needs to invest more in channel and brand publicity.