ASOS vs. Burberry
HIGH END V ONLINE
s.
B
usinesses will use the Internet within their day-‐to-‐day operations to run successfully. To explain how they use the Internet I will compare two contrasting fashion organisations. I will use ASOS and Burberry as ASOS is only based online and it is classed as a high street brand as compared to Burberry which is available both online and in store but is classed as a high end retailer. The Internet allows businesses to source materials they need from around the world at a much faster rate. ASOS source a lot of their ASOS own brand products from suppliers based outside the country but they also sell clothing from other brands. The Internet allows the business to not just source new products but to compare the cost and the quality of the products from different suppliers from around the globe. This is how ASOS procure many of their products as compared to Burberry. Burberry is known for being a British company but actually many of their products are made abroad. The Internet has allowed businesses to research in a way that has not been possible before. It is the most common method of research due to the accessibility and extensive amount of information available. Both Burberry and ASOS can use the Internet for primary and secondary research, monitoring competitors’ activities and monitoring industry developments. For example Burberry has created a much larger online presence than in previous years as compared to ASOS. ASOS are known as the leaders in e-‐commerce with over 29.5 million unique visitors per month, with 14.8 million registered users. ASOS was launched in 2000 with their mobile store launching in 2010. The iPhone and iPad app launched just a year after allowing users to browse on the move. Many luxury fashion houses do still remain fearful of entering into a digital world as exposure and online interaction can decrease the view of the brands exclusivity. They do have to operate online to some degree though to remain competitive as consumer trends stray away from the high street. Customers now use the Internet more and more for their shopping needs. Burberry has been able to maintain a balance between its high end appearance and adopting a digital lifestyle though as they teamed up with Apple in 2013 to stream their London Fashion Week runway show live online via the website from the newly released iPhone 5s. This resulted in an increase in consumer responses for both Burberry and Apple on their social media sites. Apple were able to showcase the new technology that was featured on the camera and Burberry created a buzz around the brand and got people talking, especially a younger generation of shoppers who in the future may wish to buy into the brand. Other high-‐end brands will also have to follow Burberry’s example and adapt to the shift on the high street. The current high street trend seems to show that in the future some aspects of the high street could be unprofitable as businesses move their resources online.
A
SOS’s main competitor is Boohoo that is an online only based retailer with a similar target market. Although they are both at opposite ends of the scale in regard to revenue, Boohoo is growing rapidly with both retailers selling internationally overseas. Being an online only retailer they do not need to spend money on renting a physical store like Burberry does and this money can spent elsewhere within the business, for example advertising and marketing. The Internet has provided businesses with a new method of promotion on a global scale but at a relatively low cost as compared to other methods. ASOS uses a wide range ASOS’s DEDICATED YOUTUBE CHANNEL of advertising online including social media networks such as Instagram and Facebook. They have their own dedicated YouTube channel offering stylist videos and beauty advice. Banner advertising is also used to attract more customers and the customer only has to click on the advert to be directed straight to the ASOS website. Other methods of online promotion for ASOS are direct emails, Google adverts, online blog and the online catalogue that can be downloaded as a PDF magazine. Burberry first launched their Facebook page in 2009 and was one of the first luxury brands to do so. The page shows its 17 million followers product campaigns, behind the scenes content, catwalk footage and store openings. Burberry has also engaged well with YouTube, Pinterest, Instagram and YouTube. The YouTube channel also showcases a beauty section that uses only Burberry own brand products. ASOS is different to this as it sells many different brands and so has the freedom to experiment with different products. All of Burberry’s social media channels are completely focussed around the Burberry brand image creating a seamless and flawless brand image. With a different target market to ASOS this works well for them to reposition themselves as a luxury brand but also to engage a younger audience. The brand have aimed to blur the lines between their BURBERRY YOUTUBE BRANDING IS CONSISTANT online store and the physical store by laying out their flagship store in the same way as the website. The floors are split between Bespoke, Ready to Wear, Acoustic and Experiences that is also how they are organised on Burberry.com. Burberry have also added digital chips to their product labels which can be activated with the mirrors that turn into digital screens displaying a story, sketches or runway clips.
“We had realised that we had created a lot of platforms that only exist online so we decided we had to bring these to life. Our approach to the store was to make a bridge between the online and offline experience. Today I think we’re less concerned about where we actually shop, and more concerned about the experience we have while we’re shopping.” CHRISTOPHER BAILEY
A
s Burberry have continued their focus on digital improvement both online and in store over previous years it has helped them to become one of the most popular and admired brands around the globe.
The Internet has also changed the way businesses perform customer services actions, as it is able to increase consumer convenience whilst also saving costs for the business. For example the Burberry website offers different emails for different enquires such as general enquiries, bespoke enquiries and tailoring enquiries. You can also contact their customer service through Twitter using @BurberryService. ASOS has a different approach to online customer service offering an online form, using drop down boxes to select your problem or need. ASOS then reply to you by email within 48 hours. You can also contact their customer service through Facebook and Twitter. Burberry on the other hand does not reply to enquiries on Facebook, but they do offer another type of communication method that is becoming more popular. Live chat allows the customer to speak direct to an online representative for any enquires. This method is much faster than the ASOS method of customer service as in past experience, waiting nearly 2 days for a reply can be quite frustrating. Burberry will also contact you free of charge if you select the “call me back” button on their website. You can also choose a preferred time to be called back which is helpful for those who work unusual hours or have a busy schedule. Neither of the businesses uses video messaging that is used by businesses such as Amazon allowing you to see the advisor that you are directly speaking to. ASOS customer service options are quite limited and do not offer a contact telephone number whereas Burberry offers a range of numbers for each different country.
be used effectively?
HOW CAN THE INTERNET
A businesses own website is a cost efficient way of publishing its own PR material. It means that it is always accessible to its customers and they are not paying another company to advertise it. Burberry showcase their catwalk events on the website which improves the image of the brand and the interactive element of the website. For ASOS they use a catwalk to showcase each item of clothing on the website so that you can see how it hangs on the model. Although they do not have an actual fashion show, this is how they advertise their products. You can also access the ASOS magazine online and download it to your browser. Both businesses also use the Internet to give information to future investors and not just a consumer. As we have seen, both websites give consumers information on their current product range with contact information, general updates and information on any upcoming events and developments. Stakeholders are also able to use the businesses website to their advantage as the Burberry website has a section just for investors which lists their annual reports, trading updates and the current share prices. You can also download shareholder information from the Burberry website and take a look at their financial history. ASOS also offers similar information including share price and investor reports. It is worth noting that the current share price for ASOS is nearly double that of Burberry for March 2015. The Internet can also be used efficiently by both businesses to influence their consumers’ opinions and decisions. This could be in the shape of reviews, forums and emails. Some businesses allow you to rate a product after you have bought it but this is not something that ASOS currently allow on their website, instead external review websites are used. This is the same for Burberry with many bloggers and magazines like Vogue taking the responsibility to rate their products. Bloggers from different cultures are easy to find on the Internet and so they can influence their readers from all over the world with the fashion in their economy. Currently there are over 37 million people in the UK who use some form of social networking and this is predicted to grow. The use of social networking and Internet communication allows the brand to communicate with the potential customers faster than ever before, but it also allows the consumer to voice their opinions to a greater amount of people. In a social network such as Facebook, friends and peers may influence people. If they write a bad review of a brand and this may limit their friends’ choices in the future and also if they write a good review. Each business may have its own Intranet, which is used specifically for people who work within the brand or are associated with the brand. The Intranet is based online but is for a specific group of users to provide them with help and information. For example the ASOS Intranet may give staff members advice on payroll and benefits whilst also keeping them updated on any internal developments and upcoming job opportunities. These are relevant to only those who work within the brand and are not advertised on the World Wide Web.
ASOS BLOGGERS