Despite facing significant losses, Asos remains confident in competing within the fashion industry.
- CEO José Antonio Ramos Calamonte is unfazed by rivals like Shein and Vinted, emphasising self-focus.
- The fashion market is fragmented, with leaders holding only a small market share.
- Asos plans to double its test-and-react model in response to market demands.
- Sales of Asos’ latest products are up, indicating strong market adaptation.
Asos, despite reporting a full-year loss of £379 million, maintains a confident stance in the competitive fashion market. The CEO, José Antonio Ramos Calamonte, expressed that competitors such as Shein and Vinted do not pose significant concerns. Instead, Asos is dedicated to focusing on its own performance, aiming to deliver the best possible service to its customers.
Calamonte described the fashion market as highly fragmented, with leading players achieving only 4-6% market share. This, he suggests, provides ample opportunities for success if companies perform effectively. He stated, “We are not worried about Vinted or about anyone else out there. We worry about ourselves. Today’s challenge may be Vinted; tomorrow, there will be others.”
The discussion also touched on Shein’s rapid growth, attributed to its low prices, which have been capturing the interest of major fashion stakeholders. However, Ramos Calamonte was resolute, defending Asos’ business model as a ‘winner’ due to its unique offerings in style, photography, and brand diversity.
Addressing demographic concerns, Calamonte denied that Asos would pivot towards an older demographic, despite Shein’s gains among Gen Z consumers. Asos continues to focus on its existing consumer base, notably younger shoppers through its 2-3 week lead-time test-and-react products. Currently accounting for 10% of own-brand sales, this strategy will expand to 20% in the coming fiscal year.
Despite the company’s financial challenges, Calamonte cited strong performance indicators such as a 24% increase in sales of new products compared to the previous year, achieved with minimal stock increase. This reflects a robust demand for their full-price offerings, a testament to their adaptability in a volatile market.
The CEO’s confidence in Asos’ strategic approach remains steadfast despite market challenges.
