ASOS Recorded Double-Digit Strong Growth For Third Consecutive Years.

Britain's biggest exit from the Chinese market after setbacks

LON: ASC has released its full financial report for the 2017 fiscal year, and has recorded double-digit strong growth for third consecutive years.

According to the world clothing and shoe net, in the 12 months ended August 31st,

Sales surged 33% to 1 billion 923 million pounds, gross profit nearly 1 billion pounds, and pre tax profits surged 145% to 80 million pounds a year earlier.

Among them, sales of full price products have been greatly improved.

Sales accounted for 41%.

ASOS, founded in 2000, is currently the largest fashion business in the UK. After its profit in 2004, its business has covered the world, including Russia, the United States, Germany and France.

The picture shows the main performance data for ASOS 2017 fiscal year.

The picture shows the main performance data for ASOS 2017 fiscal year.

By Region:

In the British home market, ASOS sales increased 16% to 689 million 200 thousand pounds year-on-year last year.

Sales in the international region surged 47% to 1 billion 178 million pounds, of which sales in the US region increased by 46%, mainly due to positive exchange rate factors. Sales growth in the EU region also recorded a 45% increase.

Thanks to the strong growth of 200% and 150% in the Russian and Israeli regions, ASOS's sales in other parts of the world have increased by 52%.

However, the Chinese market is an exception. ASOS once admitted that in the face of Jingdong and Alibaba, the two big business tycoons, it is difficult to establish itself in the Chinese market.

Andrea Fenn, founder of Fireworks, a digital consultancy, said that the more consumers choose in the electricity supplier market, the harder it is to catch the attractiveness of consumers. This is a blow to ASOS. Even though they enjoy the reputation all over the world, fashion lovers love their products very much, but in the Chinese market, ASOS's attention has no advantage.

Due to the high operating costs, only six months after entering China, ASOS announced in April last year that it stopped operating in China and continued to provide services to Chinese consumers through ASOS.com terminus.

In the past few years, China's regional business has lost nearly 8 million 600 thousand euros.

In terms of products, ASOS launched 85 thousand different styles of products last year, adding 5000 new products every week. About 62% to 65% of its products are owned by ASOS, while the rest comes from 1000 brands selected by ASOS.

In addition to clothing products, ASOS is also expanding its product categories, and will expand to sports and ski products such as skiing and surfing.

The first make-up product of ASOS has been launched in mid September, covering 46 items, such as lipstick, eye shadow, Gao Guang and dressing. The price range is between 5 and 12 pounds, which is about 42 to 101 yuan, and the ASOS 4505 sports series will be launched in 2018.

According to data released by Goldman Sachs Group this year, ASOS and another British electricity supplier group Boohoo have faster development speed and delivery time than H&M and Zara.

At the same time, ASOS is gaining popularity among more and more young consumers. The number of active users of ASOS has increased by 24% during the reporting period.

With the convenience of e-commerce channel gradually attracted by young consumers, in the past three years, ASOS sales growth has been increasing year by year.

In response, CEO Nick Beighton explained that the increasing double-digit growth rate of ASOS attracted the attention of many investors. After the introduction of new funds, ASOS will continue to improve and expand its business, so that its performance will further increase, and in the long run, it will form a positive cycle of sustainable development.

The picture shows ASOS's performance growth data in 2015, 2016 and 2017 and the cycle of sustainable development.

Another analyst pointed out that the British Pound's depreciation caused by the euro's depreciation has created room for the ASOS price reduction, and is also one of the driving forces to promote the strong growth of ASOS's performance.

In order to attract more young consumers, ASOS launched the "Hero" activity recently, and has successfully entered 8 new markets by offering preferential treatment to students.

Nick Beighton revealed that the innovative marketing method will also be the key direction of ASOS's future development. For example, creative video and so on, the click through rate of a marketing video released last year has exceeded 66 million times, which is two times the previous year.

According to the world clothing and shoe net, in June this year, SEMrush, the Internet marketing company, obtained the 25 most popular fashion brand websites based on the statistics of various fashion brands, including direct click, pfer, search and social media diversion.

Among them, the most popular fashion brand website is ASOS.com, ranking second is hm.com, and macys.com ranks third.

The report found that more and more consumers are using social media to click on links to browse websites, and brands can make more precise fashion marketing through social media channels.

Nick Beighton stressed that ASOS will continue to increase investment in e-commerce channels and technological innovation in the future to cope with the increasingly fierce market challenges.

He also said that the new investment means that ASOS will add 1000 jobs, and it is expected that the rising electricity penetration will create 4 billion pounds for the group.

Company income.

The group also said in the report that it will increase investment in ASOS international business this year and improve the ability of ASOS to respond quickly to changes in global market demand so as to better provide services to consumers.

As for the British market, Nick Beighton pointed out that the overall market in the UK has been affected by Europe. The future of ASOS is full of uncertainties. The group needs to improve the flexibility and agility of the management mechanism.

ASOS was officially listed on the London Stock Exchange in 2001, and its stock price growth has increased 20 times since 2008.

After its earnings announcement, its stock price fell 2% to 56.35 per share, and its market value is currently around 4 billion 700 million pounds.

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