ASOS (Rough Draft) Book by Sara Spicer

ASOS x REDYREF BEST PRACTICE

Non-Traditional Retailing Ana Acevedo, Shaina Levin, Xime Marquez, Sara Spicer FASM 415 | Professor Meeta Roy | Winter 2015

CONTENTS

EXECUTIVE SUMMARY

ASOS Company Overview

Executive Summary

kdfjkdjfkdsjfkdsjfkdjfdkfjkdjfkdjfkjf kdfjkdjfkdsjfkdsjfkdjfdkfjkdjfkdjfkjf kdfjkdjfkdsjfkdsjfkdjfdkfjkdjfkdjfkjf kdfjkdjfkdsjfkdsjfkdjfdkfjkdjfkdjfkjfv kdfjkdjfkdsjfkdsjfkdjfdkfjkdjfkdjfkjf kdfjkdjfkdsjfkdsjfkdjfdkfjkdjfkdjfkjf kdfjkdjfkdsjfkdsjfkdjfdkfjkdjfkdjfkjf kdfjkdjfkdsjfkdsjfkdjfdkfjkdjfkdjfkjf kdfjkdjfkdsjfkdsjfkdjfdkfjkdjfkdjfkjf kdfjkdjfkdsjfkdsjfkdjfdkfjkdjfkdjfkjf kdfjkdjfkdsjfkdsjfkdjfdkfjkdjfkdjfkjf kdfjkdjfkdsjfkdsjfkdjfdkfjkdjfkdjfkjf kdfjkdjfkdsjfkdsjfkdjfdkfjkdjfkdjfkjf kdfjkdjfkdsjfkdsjfkdjfdkfjkdjfkdjfkjf kdfjkdjfkdsjfkdsjfkdjfdkfjkdjfkdjfkjf kdfjkdjfkdsjfkdsjfkdjfdkfjkdjfkdjfkjf kdfjkdjfkdsjfkdsjfkdjfdkfjkdjfkdjfkjf kdfjkdjfkdsjfkdsjfkdjfdkfjkdjfkdjfkjf kdfjkdjfkdsjfkdsjfkdjfdkfjkdjfkdjfkjf kdfjkdjfkdsjfkdsjfkdjfdkfjkdjfkdjfkjf kdfjkdjfkdsjfkdsjfkdjfdkfjkdjfkdjfkjf kdfjkdjfkdsjfkdsjfkdjfdkfjkdjfkdjfkjf kdfjkdjfkdsjfkdsjfkdjfdkfjkdjfkdjfkjfv kdfjkdjfkdsjfkdsjfkdjfdkfjkdjfkdjfkjf kdfjkdjfkdsjfkdsjfkdjfdkfjkdjfkdjfkjf kdfjkdjfkdsjfkdsjfkdjfdkfjkdjfkdjfkjf kdfjkdjfkdsjfkdsjfkdjfdkfjkdjfkdjfkjf kdfjkdjfkdsjfkdsjfkdjfdkfjkdjfkdjfkjf kdfjkdjfkdsjfkdsjfkdjfdkfjkdjfkdjfkjf kdfjkdjfkdsjfkdsjfkdjfdkfjkdjfkdjfkjf kdfjkdjfkdsjfkdsjfkdjfdkfjkdjfkdjfkjf kdfjkdjfkdsjfkdsjfkdjfdkfjkdjfkdjfkjf kdfjkdjfkdsjfkdsjfkdjfdkfjkdjfkdjfkjf kdfjkdjfkdsjfkdsjfkdjfdkfjkdjfkdjfkjf kdfjkdjfkdsjfkdsjfkdjfdkfjkdjfkdjfkjf kdfjkdjfkdsjfkdsjfkdjfdkfjkdjfkdjfkjf kdfjkdjfkdsjfkdsjfkdjfdkfjkdjfkdjfkjf kdfjkdjfkdsjfkdsjfkdjfdkfjkdjfkdjfkjf ksjfkdjfkdjfdkjfdkf

ASOS History In June 2000, Nick Robertson and Quentin Griffiths founded an online fashion company called “As Seen On Screen Ltd” (ASOS Plc). In 2004, As Seen On Screen Ltd became known as ASOS.com Ltd and for the first time, the company made profit (ASOS Plc). In the same year, ASOS launched their private label brand for women. In 2005, ASOS expanded their product lines and added ASOS Beauty. During this time, ASOS operated a warehouse in the UK and endured damages caused by a fuel explosion. This pure-play E-commerce company proved to be resilient and bounced back to normalcy in 2006. ASOS not only became known for selling trendy products, but also for providing an engaging and unique customer experience. An example of this is ASOS was the first online UK retailer to have moving catwalk images. ASOS started implementing innovative online tools for customers that no one had ever seen before, which helped the company gain global recognition. In 2007, ASOS went from having 128 employees to 210 employee, which encouraged the opening of their headquarters in London. This new office space allowed ASOS to publish a company magazine. As their private label for women thrived, ASOS did not hesitate to launch a private label for men. Proving their success, ASOS was awarded “Online Retailer of the Year” by Retail Week in 2008. In 2009, ASOS began offering designer brands, as well as private label collections, including ASOS Maternity and ASOS Black. In order cater the needs of customers in specific countries, ASOS launched localized websites for France, Germany, and USA in 2010. The online retailer knew that customers would be more motivated to shop with free delivery services, which is why they made this available for UK shoppers. ASOS developed their business model even more and introduced ASOS Marketplace, a destination for customers to buy and sell secondhand products often made by independent brands and vintage stores. Progressing their company through technology, ASOS launched their iphone and ipad apps in 2011. Customers were now able to shop ASOS using their mobile devices. ASOS joined social networks to optimize their ability to connect with customers worldwide. In 2012, ASOS noticed their Australian customer base was growing, so they opened their first international office in Australia. More recently, ASOS has promoted a mission to become a truly global company. Their efforts were displayed as ASOS opened offices in 2013 throughout cities including New York, Lille in France, Berlin, and Shanghai.

“To become the world’s number one online destination for 20 somethings”

Future Growth Plans

ASOS is currently looking into taking other methods of payment besides credit and debit cards (Asos Plc). According to ASOS’ website, their goal is to make their “systems more user-friendly, wherever they are.” Also, ASOS will be adding websites in different languages to be more readily available for the world (Asos Plc). Opening distribution centers in more countries is also a very important part of ASOS future growth plans (Asos Plc). Current Revenue: £975.5 million in 2014

Strengths

-The UK’s market leader in online fashion retailing (“The Product”) -Stocks over 22,000 product styles on its website and introduces up to 1,000 new products each week (“The Product”) -Optimized multi-device Ecommerce platforms (“Annual Report”) -Strong customer focus (“Company Profile”) -Innovative initiatives, such as Marketplace and Fashion Finder (“Strategic Direction”) -Award-winning delivery experience and customer service (“Strategic Direction”)

Weaknesses

-High dependence on UK & EU markets (“Company Profile”) -Global capacity in delivery and return systems need development (“Strategic Direction”) -Pricing strategy is not specific to each country -Quality of production needs to improve (“Strategic Direction”) -Losing market share to competitors in key markets (“Company Profile”)

Opportunities

-Regain the confidence of the Australian customer (Mitchell) -Creating additional localized websites and in-country marketing teams to remove barriers, such as delivery (“Strategic Direction”) -Expanding Asian market (“Strategic Direction”) -Brick-and-mortar presence in leading geographical markets

Threats

-Increased and constant global retail competition affects customer base (“Company Profile”) -Rapid changes in customer taste and expectations (“Company Profile”) -Intense online retail competition can erode market share (“Company Profile”) -Unanticipated disruptions in logistics and warehousing as a pure-play E-commerce

ADD TEXT DESCRIBING PERCEPTUAL MAP jksfsdkjfklsdjfklsdjfkldsjfkldjklfjaskldjfklsdjfklsdjfkldsjfklsdjfkldsjfkldsjfklsdjflkjsdklfjdslkfjdslkjfdklsjfkldsjfkldsfjsdkljfsdkljfkldsjflkdsjfdskjfkdsjfklsdjfkldjflksjfklsdjfkldsjfklsdjfsdkljfklsjfklsdjfklsdjfklsdjfklsdjfkldsjfklsdjfklsdjfkls jksfsdkjfklsdjfklsdjfkldsjfkldjklfjaskldjfklsdjfklsdjfkldsjfklsdjfkldsjfkldsjfklsdjflkjsdklfjdslkfjdslkjfdklsjfkldsjfkldsfjsdkljfsdkljfkldsjflkdsjfdskjfkdsjfklsdjfkldjflksjfklsdjfkldsjfklsdjfsdkljfklsjfklsdjfklsdjfklsdjfklsdjfkldsjfklsdjfklsdjfkls jksfsdkjfklsdjfklsdjfkldsjfkldjklfjaskldjfklsdjfklsdjfkldsjfklsdjfkldsjfkldsjfklsdjflkjsdklfjdslkfjdslkjfdklsjfkldsjfkldsfjsdkljfsdkljfkldsjflkdsjfdskjfkdsjfklsdjfkldjflksjfklsdjfkldsjfklsdjfsdkljfklsjfklsdjfklsdjfklsdjfklsdjfkldsjfklsdjfklsdjfkls jksfsdkjfklsdjfklsdjfkldsjfkldjklfjaskldjfklsdjfklsdjfkldsjfklsdjfkldsjfkldsjfklsdjflkjsdklfjdslkfjdslkjfdklsjfkldsjfkldsfjsdkljfsdkljfkldsjflkdsjfdskjfkdsjfklsdjfkldjflksjfklsdjfkldsjfklsdjfsdkljfklsjfklsdjfklsdjfklsdjfklsdjfkldsjfklsdjfklsdjfkls

Current Placement ASOS is an online retailer that offers its products through several electronic platforms. Customers can purchase products on the Asos main website, iPhone app, and mobile site. The Asos Facebook page and the Asos Blog redirects customers to their online site. They have three point of sales (POS) available, including their online website, ASOS Marketplace, and the ASOS app. ASOS offers country specific websites for 9 countries throughout the world and ships to 240 countries. Their main online portals are the UK, Italy, France, Germany, Spain, Australia, Russia, US, and their most recent one, China. Besides from the UK main warehouse, ASOS has three main distributions centers located in different countries in order to provide their customers with the best shipping service available. These are located in the Germany, US, and in Australia.

Sales Volume by Channel

US retail sales - 92.3m british pounds UK retail sales - 327.2m british pounds EU retail sales - 256.4m british pounds RoW (China) retail sales - 234.4m british pounds

ASOS has made FY2014 - 955,295 (000â&#x20AC;&#x2122;s)

Current Communication and Promotional Activities ASOS main goal is to become the number 1 brand for 20 something’s while delivering an effortless online shopping experience from whatever device the customer may access it from. Their main marketing strategy, as mentioned in the 2014 Annual Report “ we are investing in price first and marketing second”; all leading to their effortless shopping experience (ASOS). However, they do have some features for promotional purposes such as pay-per-click, paid search on Google, SEO, and social media practices such as #AsSeenOnMe, later discussed.

Annual Spending Figures The ASOS marketing expenditures as of 2014 were 56,007 (000’s) british pounds. This represents a 37% figure increase from the annual marketing expenditures of the previous year. ASOS also allots a considerable amount to technology as they seek to improve their online platforms and consumer experience, therefore the expenditures for technology have also been taken into account. For the 2014 fiscal year, ASOS spent 15,136 (000’s) british pounds in technology; this represents a 48% increase in the expenditure for technology compared to 2013.

Current Advertising Activities ASOS is a firm believer that their â&#x20AC;&#x153;customers look for guidance not advertisingâ&#x20AC;?, as it is mentioned on their Annual Report. Therefore Asosâ&#x20AC;&#x2122;s advertising activities are minimal, and they allocate most of their efforts on having an effective CRM strategy that will allow them to connect and serve their customers better. Fashion Insider - this blog allows ASOS customers to style outfits, share their looks, and get inspiration from the ASOS community. Their current #AsSeenOnMe campaign allows customers to upload their images directly into their database to be shared within their blog and social media pages. ASOS Magazine - showcases the hottest trends, different style tricks, and celebrity content for their Prime Customers; delivered free of charge. Fashion GPS - source fashion and style from all over the globe featuring ASOS clothes. ASOS features their Premier membership, a very popular feature that allows customers to have unlimited express shipping, early access to sales and promotions, as well as access to exclusive sales and benefits such as the ASOS Magazine. In order to make the customer experience more enjoyable and encourage customers to return and feel comfortable with their purchase Asos has added to their online stores two features that have allowed their CRM to be more effective. The ASOS Stylist feature is the first one; consumers can contact a stylist through the online chat and get real time feedback and tips on what to wear and recommendations to pair their clothes with. The second feature allows their UK customers to get next day delivery on orders made until 10 PM. These two have ensures that their customers get instant gratification and reduce several of the issues that arise from being an online retailer.

ASOS Social Media

ASOS uses several platforms in order to target their consumers through the different social media they might be using. Their current advertising activities are mainly social platform focused such as their Twitter feed, updated several times a day with new products. Besides from twitter ASOS has a strong presence in the following social platforms: YouTube, Instagram, Pinterest, Polyvore, tumblr, and their recently released Google+ presence. All of these platforms are constantly refreshed with new content, and featuring looks and inspiration images for their target customer. Several other features that can be found throughout the ASOS platforms in order to connect further with their consumer include Fashion Finder, ASOS Magazine, Fashion GPS.

Instagram fkjsdfkjdsfklsdjfklsjfkldsjfklsdjfkdjfkdjfdkfjdkfjdkfjdkjfkdjfkdjfkdjflkdjfdkjfdjkfjdkljfdkljfklsjfklsjfkslfjsa fkjsdfkjdsfklsdjfklsjfkldsjfklsdjfkdjfkdjfdkfjdkfjdkfjdkjfkdjfkdjfkdjflkdjfdkjfdjkfjdkljfdkljfklsjfklsjfkslfjsa fkjsdfkjdsfklsdjfklsjfkldsjfklsdjfkdjfkdjfdkfjdkfjdkfjdkjfkdjfkdjfkdjflkdjfdkjfdjkfjdkljfdkljfklsjfklsjfkslfjsaskfjdskfjdskfjdkfjdfjdkf

Twitter skjfksdjfkdsjfksdjfksdjfklsdjfkdfjdskfjkslfjdsklfjsdklfjsdkfjdsklfjdskFacebook lfjdsklfjdslkfjdsklfjskfkjsdfkjdsfklsdjfklsjfkdsfjdskfjdsklfjdslkjfkldsjfklsdjfkdjfkdjfd- fjdsklfjdslkjfdskljfsgnfdkfjdkfjdkfjdkjfkdjfkd- ngjdghifewiroewjfklsnjfkdjflkdjfdkjfdjkfjdkl- flksfmlkskfowiriwhegnjjfdkljfklsjfklsjfkslfjsa djfndsfnslkfjsfiwefjsfhsjf fkjsdfkjdsfklsdjfklsjfkldsjfklsdjfkdjfkdjfdkfjdkfjdkfjdkjfkdjfkdjfkdjflkdjfdkjfdjkfjdkljfdkljfklsjfklsjfkslfjsa fkjsdfkjdsfklsdjfklsjfkldsjfklsdjfkdjfkdjf

Pinterest fkjsdfkjdsfklsdjfklsjfkldsjfklsdjfkdjfkdjfdkfjdkfjdkfjdkjfkdjfkdjfkdjflkdjfdkjfdjkfjdkljfdkljfklsjfklsjfkslfjsa fkjsdfkjdsfklsdjfklsjfkldsjfklsdjfkdjfkdjfdkfjdkfjdkfjdkjfkdjfkdjfkdjflkdjfdkjfdjkfjdkljfdkljfklsjfklsjfkslfjsa fkjsdfkjdsfklsdjfklsjfkldsjfklsdjfkdjfkdjfdkfjdkfjdkfjdkjfkdjfkdjfkdjflkdjfdkjfdjkfjdkljfdkljfklsjfklsjfkslfjsaskfjdskfjdskfjdkfjdfjdkf

New Strategic Initiative As a pure play E-commerce company, ASOS provides an excellent customer experience through all platforms including computer, tablet, and mobile. According to the excellence centre team at Nunwood, ASOS uses personalization with a “customer experience strategy of targeted communications, a range of fulfillment options, ‘premier service’ facility and individual features such as “Follow My Parcel...”” This helps the company stand out from their competitors in regards to customer engagement. Asos.com now caters to over 9.1 million active customers as of December 31, 2014, which progressed 16% from the previous year (ASOS PLC). Through Fashion Finder, ASOS provides an interactive customer experience where they are able to create outfits from the products selected on Asos.com. ASOS says, “We are investing in mobile and digital innovation and services to make us faster and ever more desirable as destination for twenty-somethings.” ASOS’ new initiative based on Tesco’s best practice of the virtual store allows the customer to interact with product in a unique location, such as the Westfield mall in Sydney, Australia.

Tesco Best Practice In 2012, Tesco implemented an interactive virtual grocery store in UK’s Gatwick Airport. This is the UK’s first virtual store technology in use. The virtual grocery store is located in the departure lounge of the airport in order to satisfy the needs of consumers thinking about what they need when they come home from vacation. According to BBC, “The idea is that you can order a basket of essentials and have them delivered the day you get home.” Tesco’s best practice also optimizes their M-commerce ability, which is the fastest growing area of retail (Simpson). Consumer trends show that in 2016, 90% of all cell phones will be smartphones that have the ability to download apps and scan barcodes to shop at virtual stores (Neville).

“Tesco’s virtual store technology is a best practice that ASOS should adopt in order to achieve a more engaging customer experience that is conveyed in a brick-and-mortar form.”

Long Term Benefits

ASOS will be regaining the confidence of the Australian customer after the Australian dollar fell 5.3 per cent against the pound in 2014 (Mitchell). ASOS started a website dedicated to Australia and set up an office in Sydney because the country was their biggest market outside of the UK. As the pound strengthened and the Australian dollar suffered, product prices in Australia increased about 20 per cent. During this time, Australian consumers turned to local online retailers. Implementing the virtual shop will reintroduce ASOS to the Australian customer with a new purpose. Their mission is to create a more tangible customer experience in a brick-and-mortar form and pop-up shop style. The ASOS virtual shop will enhance the company’s M-commerce abilities. Their strategy for the future is to provide the most engaging experience as possible for their customers (“Strategic Direction”). The company is always searching for new ways to connect with their customers. This virtual shop will reach the Australian customer in a unique way, influencing sales growth and increased conversion rate.

Redy

REF

Technology

We will be using QR code scanning technology and interactive touchscreen displays for the development of this project. The technology used by Tesco during the Gatwick Airport virtual store trial was developed and powered by Media5, a company that develops “tailored digital solutions for consumer experiences” (Media 5). The screens and the technology needed to support the screens, such as secure browser settings and the touch display feature, are supplied by Media5. Located in England this company has already provided services for companies such as Tesco, Morrison’s, and Fujifilm.This company is the one that develops the technology necessary for the touchscreens that will display our products along with a scannable QR codes for the consumer to use when shopping. In order to efficiently work the consumers need to have an available smartphone which has the preset application to work with this program. ASOS already has an available update, for this reason, only a app update with the QR scanning technology included will be needed. This app is a transactional m-commerce app, which means that consumers will be redirected to the website in order to finalize the purchase.

“

What is the technology driving this initiative?

”

Who are the key suppliers of this technology?

In order to make this campaign happen, Tesco used Media 5â&#x20AC;&#x2122;s technology. Media 5 offers a wide variety of products for interactive store initiatives. They would be the main suppliers for the technology necessary to carry our campaign in Australia. They would be the key developers of the screen and its functionalities, as well as the providers of the platform under which we will have the means to operate the online store. Of the products Media 5 offers, the TouchPoint technology is the one that offers the features needed to comply with our needs. The benefits offered by the TouchPoint screens are that it allows for bespoke branding, as well as adaptable features for several hardware components; it features a modular design for fixture mounting, and a 22â&#x20AC;? PCAP touch screen (Media 5). The installation services are provided by the company, and the product would be delivered within 6 weeks (Wheeler). Media 5 will develop a browser to according to the features required by each retailer and implement a secure browser feature to ensure that no outside device can manipulate the screen content. For ASOS, Media 5 would develop a series of racks that display the garments through which the consumer can browse through, with a click feature which will redirect them to a page that displays the garment on a model. Besides from the TouchPoint screens, the technology and components required for the plan include tan application update developed by ASOS (ASOS Corp.) that includes the scannable software provided by Media 5 (Media 5), as well as smartphones and internet access with the required application installed and internet connection. The transaction will be carried out through the already existing mobile site.

TECHNOLOGY & IMPLEMENTATION

The operational considerations of the implementing the ASOS initiative are the following: 4-6 weeks should be allowed for the delivery of the product (Wheeler) from the UK, plus 5 days for the installation of the screens, assuming that all permits have been obtained. Staff does need to be available for the customers as a resource for explaining its functionality. However, customers will be able to access it on their own and make their purchase without interference from 3rd parties.

Consumers will need to have internet connection and a smartphone with the updates app in hand in order to access the store. As they get to the screen, consumers will be able to swipe through the different options and to see elected combinations on a stills mannequin displayed on the screen. The basic functions of the screen would include: swipe left or right to browse the racks which feature a variety of ASOS products, select the item, see it on a model, and scan the code to purchase.

PRE-LAUNCH MAY

JUNE

AUGUST

L SEPTEMBER

OCTOBER

NOVEMBER

Outdoor Advertising Billboard Indoor Advertising Westfield Print Advertising ASOS Magazine Online Marketing Hashtag Campaign Facebook Promo Google+ Promo Instagram Promo Twitter Promo YouTube Videos E-newsletters Website Ads Event Marketing Launch Party

JULY

LAUNCH SEPTEMBER

OCTOBER

NOVEMBER MAY

DECEMBER JUNE

Activity Map

POST-LAUNCH PRE-LAUNCH JANUARY JULY

FEBRUARY AUGUST

MARCH SEPTEMBER

APRIL OCTOBER

NOVEMBER

ADD TEXT DESCRIBING ACTIVITY MAP jksfsdkjfklsdjfklsdjfkldsjfkldjklfjaskldjfklsdjfklsdjfkldsjfklsdjfkldsjfkldsjfklsdjflkjsdklfjdslkfjdslkjfdklsjfkldsjfkldsfjsdkljfsdkljfkldsjflkdsjfdskjfkdsjfklsdjfkldjflksjfklsdjfkldsjfklsdjfsdkljfklsjfklsdjfklsdjfklsdjfklsdjfkldsjfklsdjfklsdjfkls jksfsdkjfklsdjfklsdjfkldsjfkldjklfjaskldjfklsdjfklsdjfkldsjfklsdjfkldsjfkldsjfklsdjflkjsdklfjdslkfjdslkjfdklsjfkldsjfkldsfjsdkljfsdkljfkldsjflkdsjfdskjfkdsjfklsdjfkldjflksjfklsdjfkldsjfklsdjfsdkljfklsjfklsdjfklsdjfklsdjfklsdjfkldsjfklsdjfklsdjfkls jksfsdkjfklsdjfklsdjfkldsjfkldjklfjaskldjfklsdjfklsdjfkldsjfklsdjfkldsjfkldsjfklsdjflkjsdklfjdslkfjdslkjfdklsjfkldsjfkldsfjsdkljfsdkljfkldsjflkdsjfdskjfkdsjfklsdjfkldjflksjfklsdjfkldsjfklsdjfsdkljfklsjfklsdjfklsdjfklsdjfklsdjfkldsjfklsdjfklsdjfkls jksfsdkjfklsdjfklsdjfkldsjfkldjklfjaskldjfklsdjfklsdjfkldsjfklsdjfkldsjfkldsjfklsdjflkjsdklfjdslkfjdslkjfdklsjfkldsjfkldsfjsdkljfsdkljfkldsjflkdsjfdskjfkdsjfklsdjfkldjflksjfklsdjfkldsjfklsdjfsdkljfklsjfklsdjfklsdjfklsdjfklsdjfkldsjfklsdjfklsdjfkls jksfsdkjfklsdjfklsdjfkldsjfkldjklfjaskldjfklsdjfklsdjfkldsjfklsdjfkldsjfkldsjfklsdjflkjsdklfjdslkfjdslkjfdklsjfkldsjfkldsfjsdkljfsdkljfkldsjflkdsjfdskjfkdsjfklsdjfkldjflksjfklsdjfkldsjfklsdjfsdkljfklsjfklsdjfklsdjfklsdjfklsdjfkldsjfklsdjfklsdjfkls jksfsdkjfklsdjfklsdjfkldsjfkldjklfjaskldjfklsdjfklsdjfkldsjfklsdjfkldsjfkldsjfklsdjflkjsdklfjdslkfjdslkjfdklsjfkldsjfkldsfjsdkljfsdkljfkldsjflkdsjfdskjfkdsjfklsdjfkldjflksjfklsdjfkldsjfklsdjfsdkljfklsjfklsdjfklsdjfklsdjfklsdjfkldsjfklsdjfklsdjfkls jksfsdkjfklsdjfklsdjfkldsjfkldjklfjaskldjfklsdjfklsdjfkldsjfklsdjfkldsjfkldsjfklsdjflkjsdklfjdslkfjdslkjfdklsjfkldsjfkldsfjsdkljfsdkljfkldsjflkdsjfdskjfkdsjfklsdjfkldjflksjfklsdjfkldsjfklsdjfsdkljfklsjfklsdjfklsdjfklsdjfklsdjfkldsjfklsdjfklsdjfkls jksfsdkjfklsdjfklsdjfkldsjfkldjklfjaskldjfklsdjfklsdjfkldsjfklsdjfkldsjfkldsjfklsdjflkjsdklfjdslkfjdslkjfdklsjfkldsjfkldsfjsdkljfsdkljfkldsjflkdsjfdskjfkdsjfklsdjfkldjflksjfklsdjfkldsjfklsdjfsdkljfklsjfklsdjfklsdjfklsdjfklsdjfkldsjfklsdjfklsdjfkls

Market Overview

he Australian retail market is cur rently valued for $22.1 billion. This is a market that has been in constant growth in both, online operations and brick and mortar locations. The retail apparel industry has a current value of $16.7 billion as of August 2014 with a reported growth of 3.7% since 2013. Likewise, the online retail market is valued in $36.4 billion, of which $5.4 billion are specifically apparel related as of August 2014. The apparel online industry accounts for 14.8% of all online retailing in Australia. (Marketline Industry Profile) The apparel industry in Australia, based on the number previously detailed has a strong presence in the country’s economy. Its growth means opportunity for new retailers to expand and for new ones to enter the market. For ASOS, this represents an opportunity to differentiate themselves from the current online retailers as the projected growth by 2019 is of 121.7% resulting in an industry value of $80.7 billion. (Marketline Industry Profile) The proposed initiative will help ASOS take a step towards the future of online shopping by differentiating themselves from the growing pool of competitors caused by the low entry barriers that exist in the Australian apparel industry market. Leading the market with the implementation of this technology in their stores is Tesco and its division F&F, the clothing subsidiary of Tesco. Tesco has used this technology across several platforms in order to boost their sales by applying it at various locations, from their retail stores to innovative places like Gatwick Airport and the subway in Hong Kong. Other retailers that are currently using this initiative are Morrison’s, one of UK’s biggest supermarket brands; Sainsbury’s, the third largest supermarket chain in the UK; Halfords, retailer of car parts and several outdoor sporting goods for camping and touring; Cineworld; and Fujifilm. (Media 5) These companies, outside of the fashion retail industry, are retailers that have brick and mortar locations and have taken this type of initiative to boost and improve their online sales.

Future Competition There are several fashion retailers that would be capable to engage in this kind of initiative. Amongst the leading apparel retailing companies in Australia, several could potentially engage in an initiative similar to the one being proposed. Billabong International, a leading company in Australia, has several brands under its name and operates as a marketing, distribution, wholesaling, and retailing business for apparel. They currently sell through their own branded retail stores and through specialized boardsports. Their lead position in the Australian market gives the advantage to apply and engage in new promotional activities that could resemble the

Touchpoint initiative. (Marketline Industry Report) However this initiative would serve for them not to create a new experience for customers but to engage in their online portal. Nastygal, an online retailer that has been introduced worldwide, does not have any brick and mortar stores. Their strong positioning in the online market, similar to ASOS, plus the drive in the consumer market for new experiences and technologies could also drive them to implement a technology that could potentially replace or imitate the touchscreen initiative. (Nastygal Annual Report) Shopbop finds itself in the same situation as their online presence has grown considerably in the past year. (Shopbop) Shopbop would be a competitor that due to the consumer changes might consider adapting a similar technology in order to engage customers in a new experience. The same is true for the four biggest apparel retail companies in Australia. Companies like The Just Group, Pacific Brands Limited, and Cotton On, are companies that can afford and engage in technological promotional activities that could entrance the consumer. (Marketline Industry Report)

“

How will that affect the long term success of your initiative?

”

Threat of New Entrants: MODERATE-HIGH -Time and cost of entry depends on corporate structure and size of retailer

-Specialist knowledge is required for understanding technology to new location - Low economies of scale -Technology is accessible

Threat of -Low barriers New Entrants to entry

Competitive Rivalry: LOW

-Small number of competitors -Differenciated products -High switching costs -High customer loyalty -Leaving market has high costs

Supplier Power: HIGH -Scarce amount

-Small number of customers

Supplier Power

Competitive Rivalry

Buyer Power

-Service is unique -Substitution is difficult -Cost to change is high

Threat of Threat of Substitutes: Substitutes

MODERATE-HIGH

-Substitution is increasingly accessible -Cost of change is high

Buyer Power: LOW

-Large number of e-tailers -Size of orders are small -Supplier competitors offer unique products -Quality over price -Can substitute similar products, but may have different functions -Costs to change is high

The Australian ASOS consumer can be described as “the twenty-something fashion-lover: an avid consumer and communicator who is inspired by friends, celebrities and the media” according to ASOS Plc., where they also state that they “are obsessive about understanding them so we can join their conversation and offer them the fashion they want” (CITATION). The average gender for ASOS is 80% being women and 20% being men. This is a result of their product assortment being 56% geared towards women and only 20% being targeted towards men. The Australian customer those ages from 18-29 years old shops online 69% more than they do in store. This is compared to 67% of 30-39 year olds, 63% of 40-49 year olds and 58% of 50 years old and older (CITATION). The 18-29 age range also showed a 16.28% frequency of online shopping in Australia compared to the average of 14.97% (CITATION). The average ASOS consumer income level is relatively low as their target market is still so young. They will cater to this target market by understanding their financial state by having sales and offering discounts such as a student discount. When breaking down the Australian demographics and which city is the highest population density city, Sydney ranks highest with 5,400 people per square mile, while most of Australia’s wealth resides on the eastern coast of Australia (CITATION). Stated by ASOS PLC, these young consumers don’t just like to shop online. They believe fashion is also entertainment. They follow and often comment on celebrity trends; they blog their own “fashion editorial”; they broadcast their thoughts on style in soundbites on social networks and via YouTube (CITATION). According to ASOS PLC, fashion matters to these ‘twenty-somethings’ that they target. Studies from Mintel Young Fashion Report in 2011, observed by ASOS, show that 67% of under-25s believe how they look is important with almost three quarters of all young women saying they enjoy shopping for clothes (CITATION). Two-thirds of those aged 19-25 shop online because its easier and faster according to ASOS Finance analysis by age bracket in February 2012 (CITATION). The consumer is also responding to shopping channels depending on the countries overall financial state. An example given by ASOS PLC showed that in the UK they found that 18-21 year olds are more likely to shop according to discounts compared to those in their mid or late twenties (CITATION). In the Australian Connected Consumers report piloted by the Neilson group, they state that younger consumers are more likely to connect via laptops, mobiles and tables as of 2012. With

this being dated three years ago, the numbers have only grown significantly since then. Australia as a whole uses tables 19%, mobiles 38%, laptops 65% and desktops 69%. But those younger consumers that age from 16-24 use mobiles 61% of the time and laptops 80% of the time. The age range from 25-34 uses tablets 24% of the time and this is because that age range has a higher disposable income for extra electronics such as tablets. They also use mobile devices 65% of the time and laptops 75% (CITATION). The Nielson group conducted a report on the Australians’ media consumption and how that affects their attitudes and buying behaviors. Neilson group says three key thoughts emerged from Australian consumers; there is a ‘new media’ – mobile and social, don’t hold onto tradition – consumers aren’t, and Think of the landscape as a Rubik’s Cube – simple segmentation is impossible. Studies show in 2012 that the Australian consumer spent an average of 23 hours and 18 minutes a week on the Internet. The average female spent 21 hours and 48 minutes while the males spent 24 hours and 54 minutes on average (CITATION). Australian consumers are online shoppers and increasingly purchasing off of their mobile devices (Gray). According to channeladvisor.com.au, “Australians spend an estimated $15.6 billion each year online…” There is a major opportunity for retailers to take advantage of the rising movement toward mobile-centric strategies.

VICTORIA WELLS

• Age: 23 • Income: • Education: • Shops At:

Communication & Promotional Plan

PRE-LAUNCH MAY

JULY

AUGUST

LA SEPTEMBER

OCTOBER

NOVEMBER

DEC

SEPTEMBER APRIL

OCTOBER

NOV

TECHNOLOGY VIRTUAL STORE DEVELOPMENT MOBILE APP UPGRADE MOBILE APP UPDATE VIRTUAL STORE UPDATE ASOS SYDNEY WAREHOUSE SHIPPING TRIAL WESTFIELD SYDNEY SHIPPING INSTALLATION OPENING DATA COLLECTION & EVALUATION

UNCH

UST

JUNE

PRE-LAUNCH POST-LAUNCH

LAUNCH SEPTEMBER

OCTOBER

NOVEMBER

MAY DECEMBER

JUNE JANUARY

JULY FEBRUARY

AUGUST MARCH

Communication and Promotional Plan Analysis kdfjkdjfkdsjfkdsjfkdjfdkfjkdjfkdjfkjf kdfjkdjfkdsjfkdsjfkdjfdkfjkdjfkdjfkjf kdfjkdjfkdsjfkdsjfkdjfdkfjkdjfkdjfkjf kdfjkdjfkdsjfkdsjfkdjfdkfjkdjfkdjfkjfv kdfjkdjfkdsjfkdsjfkdjfdkfjkdjfkdjfkjf kdfjkdjfkdsjfkdsjfkdjfdkfjkdjfkdjfkjf kdfjkdjfkdsjfkdsjfkdjfdkfjkdjfkdjfkjf kdfjkdjfkdsjfkdsjfkdjfdkfjkdjfkdjfkjf kdfjkdjfkdsjfkdsjfkdjfdkfjkdjfkdjfkjf kdfjkdjfkdsjfkdsjfkdjfdkfjkdjfkdjfkjf kdfjkdjfkdsjfkdsjfkdjfdkfjkdjfkdjfkjf kdfjkdjfkdsjfkdsjfkdjfdkfjkdjfkdjfkjf kdfjkdjfkdsjfkdsjfkdjfdkfjkdjfkdjfkjf kdfjkdjfkdsjfkdsjfkdjfdkfjkdjfkdjfkjf kdfjkdjfkdsjfkdsjfkdjfdkfjkdjfkdjfkjf kdfjkdjfkdsjfkdsjfkdjfdkfjkdjfkdjfkjf kdfjkdjfkdsjfkdsjfkdjfdkfjkdjfkdjfkjf kdfjkdjfkdsjfkdsjfkdjfdkfjkdjfkdjfkjf kdfjkdjfkdsjfkdsjfkdjfdkfjkdjfkdjfkjf kdfjkdjfkdsjfkdsjfkdjfdkfjkdjfkdjfkjf kdfjkdjfkdsjfkdsjfkdjfdkfjkdjfkdjfkjf kdfjkdjfkdsjfkdsjfkdjfdkfjkdjfkdjfkjf kdfjkdjfkdsjfkdsjfkdjfdkfjkdjfkdjfkjfv kdfjkdjfkdsjfkdsjfkdjfdkfjkdjfkdjfkjf kdfjkdjfkdsjfkdsjfkdjfdkfjkdjfkdjfkjf kdfjkdjfkdsjfkdsjfkdjfdkfjkdjfkdjfkjf kdfjkdjfkdsjfkdsjfkdjfdkfjkdjfkdjfkjf kdfjkdjfkdsjfkdsjfkdjfdkfjkdjfkdjfkjf kdfjkdjfkdsjfkdsjfkdjfdkfjkdjfkdjfkjf kdfjkdjfkdsjfkdsjfkdjfdkfjkdjfkdjfkjf kdfjkdjfkdsjfkdsjfkdjfdkfjkdjfkdjfkjf kdfjkdjfkdsjfkdsjfkdjfdkfjkdjfkdjfkjf kdfjkdjfkdsjfkdsjfkdjfdkfjkdjfkdjfkjf kdfjkdjfkdsjfkdsjfkdjfdkfjkdjfkdjfkjf kdfjkdjfkdsjfkdsjfkdjfdkfjkdjfkdjfkjf kdfjkdjfkdsjfkdsjfkdjfdkfjkdjfkdjfkjf kdfjkdjfkdsjfkdsjfkdjfdkfjkdjfkdjfkjf kdfjkdjfkdsjfkdsjfkdjfdkfjkdjfkdjfkjf ksjfkdjfkdjfdkjfdkf

LEAVE F FINANC PLAN!

FOR CIAL

Conclusion