ASOS, Boohoo, & Online Fashion Retail Business Models
Former Product and Trading Director at ASOS
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ASOS
Why is this company interesting?
ASOS is a UK-listed online fashion retail platform with over 26m customers across the UK, EU, and the US. The company was founded in 2000 and generates ~£4bn in sales with ~45% private label and exclusive brand collaborations and 60% from branded suppliers.
The company mainly operates a traditional online wholesale model but has recently launched a 3P-marketplace to widen the selection. ASOS sources 60% of the assortment on longer lead times from APAC and 40% from the UK or Europe. The company targets ~70% full price sales with a lower intake margin than offline competitors but also a lower promotional rate which leads to a gross margin of 45-50%.
Over the last 5 years, ASC has grown the customer base from 12m to over 26m customers that order ~3.5x per year on average. The average order value is ~£40 including returns and the company is targeting a medium term EBIT margin of 4%. ASC’s CEO recently stepped down and the original cofounder is a non-exec holding ~3% of shares outstanding.
ASOS, Boohoo, & Online Fashion Retail Business Models(December 16, 2021)
Maria Hollins
Former Product and Trading Director at ASOS
Marias has over 30 years experience in the fashion industry across both leading offline and online UK retailers. She is the Former Trading Director at ASOS, where she was responsible for all buying and product merchandising at the group. Prior to ASOS, Maria enjoyed nearly 20 years at Arcadia Group, previous owner of the Topshop brand, where she led Merchandising. Maria is now a Managing Director of Ann Summers and allocates products on ASOS and Zalando as a third-party brand supplier.
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