ASOS Expansion into India: Market Strategy & Challenges Case Study

Introduction

Marketing refers to an activity to embark on to promote the product or services of the corporation. This helps the company to satisfy the needs and requirements of the customers (Morgan et al., 2019). The report will discuss ASOS plc, a renowned online retail company, headquartered in UK, London. The company offers a wide range of products which includes clothing, footwear’s, and accessories while maintaining the requirements of customers. The report will provide a brief overview of the company’s statistics and data. The report will further discuss about the market research of ASOS expansion into Indian Territory. Key features of the report will highlight on company’s business model, positing and buying strategy. It will also highlight marketing strategies adopted by the company to attract the large number of customers.

Overview Of The Organization

Key statistics

ASOS is a leading online fashion outlet which provides with the lifestyle goods for their trending customers. The firm sells the vide variety of the products that includes clothing, cosmetics, footwear’s, accessories, lifestyle products and many more. The company has its main headquarter in United Kingdom, London. Within UK, Company’s annual income for 2013-2023 financial years is about 1.7 billion GBP. The company is growing at higher pace within past few years. The firm is the most popular globally and has established their websites. According to the data, the firm throughout year 2012 and 2022 has global revenue of 3.9 billion pounds (ASOS, 2023. In the existing fashion retail atmosphere that has elevated retailers are obtaining multichannel, the case company still keep it up in its strategy. In year 2021 the firm has put the multi-brand seller in the similar association with retailers’ online platform with over 2 billion pounds of sales in the fashion sector.

Global consumer

ASOS provides shipping options for the customers globally with their online platforms. The company preliminary targets young clients around age of 16-34 old across the country. The company has modified its websites and offline platforms throughout locally to meet the requirements of the customers. The firm has targeted their customer by putting extra efforts on technology and product development. ASOS mainly updates their clothes and cosmetic so as to target young population by making trendy products. The firm also provides high quality to its customers which increase their repeated sales (The economic and social impact of ASOS, 2022). ASOS has maintained its positive brand image among its customers throughout UK. It also focused very much on videotape promotion; this technique is the main factor that adds to its triumphant endorsement all the way through the digital platform.

Financial implications

ASOS is major leader in retail market of fashion. The company is growing its products globally by using mergers and through their own collection. The company has a major role in enhancing social and economic contribution within the UK and globally. The company has around 1.8 pound GDP contributions throughout year 2019-20 in all the areas of the economy. This helped the country to generate more than 30000 jobs in the year and create higher profits for the government. The fashion online industry heavily relies upon the innovation in context of advancement in trends and by maintaining lifestyle of peoples.

Key issues

ASOS has extended worldwide, but as an important segment of its profits still has come from the United Kingdom’s market. This reliance on a on its own marketplace can make the company more vulnerable to trade and industrial fluctuations as well as local rivalry. The firm operate itself as an online retailer. This has reduced their capability to provide face-to-face interactions with their clients and to known about their requirements. The firm has many competitors around the globe such as Zara, H&M, Marks and Spencer’s and many other huge retail companies growing at tremendous rate (Katsikeas et al., 2020). This rivalry has putted burden on ASOS regarding pricing issues and increased expenditure in various promotion strategies. The company is offering a wide range of products to its customers, this reduce the maintenance of constant quality control. This has created dissatisfaction among its buyers and reduced the reputation of the firm. The firm has earned major revenue in past few years; this has created major challenges for them in terms of managing inventory, supply chain and operations. The fashion business is considered by speedily shifting development and on this basis company’s accomplishment depends heavily on their ability to stay in advance of them. As the growing demands of its customers regarding sustainable products, the firm should focus on environmental issues. The company balancing with customer demands and sustainability is quite challenging.

Market Research

As the fashion industry is rising in India. This sector has been gaining popularity in diversity, trendy fashion and focusing on sustainability. According to the data Indian retail market in fashion is rising at the reach about 115 billion by the year 2025 (ASOS.com, 2023). On the other hand, with the growing rivalry, technological advancements and changing preferences of consumers, it is necessary for the ASOS to go through challenges and opportunities to enter into India. With the increasing trends in social and environmental challenges, maintain sustainability is very crucial for the ASOS. Indian fashion companies are implementing more ethical and environmental friendly products in their sales. The firms are using recycle materials, reducing wastage, organic materials, encouraging fair practices for its workforce and minimizing carbon footprints. ASOS should focus of these environmental measures to grow in an Indian market and to gain competitive advantage globally.

The global pandemic has forced the customers to have rapid shifts in digital shopping of goods. ASOS should focus more on its online stores to target Indian customers by creating e-commerce platforms and should focus more on promotions. The digital shopping trend is expecting to rise within the next 3 years, by concerning this factor the ASOS should focus more on investing in virtual try options, artificial technologies and machine learning algorithms. Another development that is getting hold of drive within the Indian market of fashion is inclusivity. The company should embrace diversity and inclusivity in its fashion, propose, campaign, programs as well as communication (Varadarajan, 2020). ASOS can create collection for transgender, plus-size, as well as disable clients, violating the conventional magnificence standards. As customers are in search of more depiction as well as inclusivity, this tendency is likely to expand in significance. ASOS should focus more on innovation, technology and customer experience to enter into Indian market, as completion is increasing in this sectors both nationally and globally. To gain competitive advantage ASOS needs to differentiate its products, they can do this investing more in Research and developments.

Many brands in fashion within India have exposed the vulnerabilities of COVID. ASOS should maintain source in raw materials, improved logistic chain and manufacturing of goods. They need to make sure agility as well as resilience on its supply chain to maintain uncertainty in future. In spite of the expansion impending, the Indian is in front of a skills gap in the labour force. ASOS should focus mainly on skilled workforce to grow its sales. The company should invest in training and development of employees to enhance their skills and industry knowledge necessary to do extremely well in the competitive marketplace (Kingsnorth, 2022). The firm needs to spend in capacity growth, mentorship along with teamwork with educational association. Despite the growing trends of creators globally, customers within India relies on advertisements and reviews. ASOS needs to focus more on promotion of its products through online social media channels, celebrity endorsements and creating blog posts using paid promotions.

Brand positioning

Target audience

Young individuals have a growing interest in fashion sector. Due to this reason ASOS should focus on them as target customers. The company can achieve this by maintaining its products with current market trends along with this they have keep cost efficient pricing strategies. The company should mainly focus on age group of 16-30 years old. They can manage its brand image by adopting customer’s preferences and demands within India (Eriksson et al., 2020). Their strategy should be based on developing innovative products while focusing on social networks. The brands like Forever 21 is all age groups also to maintain connected with older audience. This has helped the company to gain competitive advantages. The ASOS can also manufacture basic as well as trendy products to meet the market demands. The business should also focus on athlete products to target young audience. As the young customers is at the present time more focusing on healthy lifestyle.

Brand differentiation

A differentiation plan search for to offer goods which suggest advantages that are diverse from those of participant this is extensively appreciated by consumers. The goals of adopting this strategy is to gain competitive advantages by offering enhance and innovative goods while maintain the quality from its customers. ASOS should identify the requirements of customers by analyzing the competitive brands. The company needs to build up unique products to position them in diverse markets. This is main issue for the firm is to determined information regarding the preference of its customers (Doole et al., 2019). ASOS should focus on up cycling waste by converting it into trendy as well as stylish fashion products. Their collection needs to include footwear, bags, clothing and many more made to zero waste business. To differentiate brand ASOS need to concentrate on carbon emission reduction and sustainable packaging options.

Brand personality

As conventional fashion retailing industry has reach out the maturity stage, being categorized by a blocking to a certain extent standardized stores, the requirement of brand personality through positioning become more and more apparent. A brand personality approach aims at decrease rivalry pressure by enhancing innovation while maintaining the consumers cost sensitivity.

Brand identity

ASOS by introducing more cost friendly collection and maintain sustainability through its supply chain can maintain its brand identity. In the empire of style, ASOS brand can stand out from the competitive firms by maintaining its commitment to sustainability, and affordability at the same time as protecting the principles of innovation. India has fashion landscape that witnesses a tremendous growth in home-grown brands as well as companies that embrace fashion and size inclusivity by maintaining cultural values (Alzoubi et al., 2022). The up-and-coming companies can break these conventional norms while defining the perception of style and fashion. ASOS by focusing on innovation and implanting technologies can benefit from diversity as well as caters to a broad variety of body type and sizes. They can fashion a comprehensive space where everyone can feel characterized and empowered.

Pricing strategy

Pricing is setting of the amount which the customers are willing to pay for products and services. But this is very complicated process for the companies to set prices of their goods. Fashion sector companies convey certain qualities regarding its brands and products through the price tag. ASOS product’s prices are determined throughout both design and product, seller they sell, design, manufacturing costs and many other factors (Hawkins, 2020). They can sell exclusively via own retail outlet as occasionally they can order personal label tags from manufacturers.

Buying

Product range

ASOS sells an extensive range of goods which includes clothing, accessories, footwear, lingerie, and many more. The stages characterize a mix of its personal brands, such as their own designs as well as work together with third-party firms, including renowned companies and emerging designers (Adamkiewicz et al., 2022). ASOS products has to manage with a lot of diverse manufactured goods alternative long convey detachment for ready-to-wear products, long manufacture as well as delivery times. The requirement to direct large information of article throughout the suppliers’ allocation centre for client’s personality picking causes unproductive use of luggage compartment space and labour force capability and extra transport.

Manufactures

The company has collaboration with well known companies for manufacturing of its goods. They also have their own private manufacturing channels which gives them cost advantage over their competitors, the company by collaborating with many Indian brand can open its off line stores. The corporation enthusiastically work together with designer as well as models from varied background, in that way resonate with a wide range of contemporary customers that are extremely worth inclusivity.

Buying metrics

The buying metric of the company states that most of the buyers shop from the website of the company which is ASOS.com. The website is ranked which helps the buyer to evaluate the worth of the business (Lorenzo-Romero et al., 2020). Over the few months ASOS’s worldwide rating has reduced from 420 to 390. The company to enlarge its business have to improve its rating by promoting its product in Indian market. They have to focus more on sustainability to get better reviews and feedbacks from customers.

Sustainability of post-consumer

To manage sustainability within the organization, ASOS has successfully implemented the use of recycle goods. The company is focusing more on sustainability to increase their brand image on global scale. The corporation is planning to use more sustainable and recyclable option within their manufacturing process on 100% of its products by 2030. This will increase the life of the garments and facilitate product recovery initiative.

Business model

Logistics And Sales

A supply chain is a combination of combined network of the firms and brands involve in manufacturing, shipping, selling, sourcing as well as storing of goods. The supply chain of ASOS is a complicated network which includes many goods (Thorisdottir and Johannsdottir 2020). They have efficient supply chain communication among all parties at every stage. This is significant to minimize time, enhance qualities and make sure that timely delivery to customers as well as retailers. The company’s supply chain enhance in minimizing inventory, production and logistics expenses while at the same time add value to customer satisfaction.

Warehouse automation facilitates ASOS in gaining competitive advantage by implementing same and next day shipping options. The company by focusing on streaming automate as well as logistics their storehouse modernization can have enlarge from a mainly UK brand within globally. The company has fulfilled the demand of its customers by maintaining super fast delivery options, free shipping and returns options. They have efficiently managed this procedure within UK and to expand in Indian market they have to carry the same strategy. The company has specialized in adapting big warehouse spaces which includes racks for easy prick ups as well as hangers to ensure efficient storage conditions for clothing. ASOS has their inventory holdings near to the point of sales so that they could easily and rapidly distribute them whenever required (Djafarova and Bowes, 2021). This practice make sure that all the product ordered are packed fast without any barrier which can customers to go opposing retailers. The company has been involved switching to smarter planning techniques, lower cost suppliers and is focusing on short shipping routes with lower fuel cost. The company must be aware of Indian laws while expanding its business. Shipping products globally requires duties, tax, insurance and costs charge from country to country. Global trade organization has automatically enhanced these trade channels as well as shipping techniques. Such routes can help in fashion firms updated with the latest data assist them to act in accordance with with local arrangement as well as authorize.

Marketing Strategy

Digital marketing plays an essential role in overall brand strategy within fashion industry. The company to gain a competitive advantage has to implement the best marketing techniques. The company to grow in Indian Territory can target visitors by displaying advertisement reminders which can make them recall a product they prior on the website. They can include discounts and targeting the client that have items in their application cart but still haven’t purchased. ASOS to focus on its target audience should efficiently work with content creators or bloggers. This can help the company to increase its sales by recommending its products on marketing channels. Customers are influenced by well-known influencers who can assist the firm in increasing their market sales and share.

The company to build brand loyalty can begin with engaging with the audience. This will help ASOS to constantly connect with the customers to assist in improving their thoughts about the brand. To expand in the Indian market they can effectively create initiatives and campaigns to connect with a wide range of audiences. They can promote their products on social media such as Facebook, Instagram, Snapchat, and many other channels to grow their business rapidly (Gazzola et al., 2020). Price endorsement is an established method of growing sales and client loyalty for advertisement strategies. For example, ASOS can partner with Gen Z youth by partnering with them on social media by paying them. They can create trendy and cost-friendly hauls to influence a large number of audience. They can offer effective strategies including black Friday sales, holiday sales, pink Friday sales, festival sales, and many other ways.

Marketing Partner

Marketing partners aim to connect two or more brand or firms to enjoy the marketing strategies collaborations. This helps the business to reach the business objectives and marketing perspective. ASOS can collaborate with Indian brands to gain exposure, improve credibility and brand awareness to produce driving as well as content traffic, enhance conversions, and generate leads. Influencer marketing strategy can leverage the authority of influencers on social media to enhance and promote their products, this can increase brand awareness. This marketing technique is very necessary for ASOS to drive significant fashion trends as well as brand perceptions on revenue and sales.

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Figure 1: effectiveness of influencer marketing

Affiliate marketing includes a brand's partnership with the partners to endorse the company’s product in exchange for fees on the sales they produce. This initiative can help the company structure with Indian affiliates by keeping them engaged and appreciating their efforts. Regards can be in terms of commission, additional perks, or fixed income which depends on the company’s revenue. ASOS can also promote its products using traditional strategies such as print media, television, radio, etc; They can use offline advertisements in numerous ways. Pay-per-click (PPC) advertisements are the most efficient way to allow for precise timing and audience targeting. This can be done by using physical clicks on the advertisements which can help the company to actively engage with target audience.

Marketing Channel

The primary market for fashion brands is displayed at trade shows. ASOS can create a highly convertible website for its Indian customers. This can help them in having dominant as well as clear messages that explain the information about the company. They can treat the primary home page banner as a booth to display at trade shows. They can create an attracting website by putting extra effort into color and themes. The company should emphasize transactional email to follow on with purchasers to offer new account IDs. The content creation promoting strategy is the best way to attract customers. With the help of mobile applications, ASOS can showcase their firms and classify individuality for themselves within the customer market. The app should include features such as AI-powered tools that can assist in reaching the best product of their choice.

Campaign

ASOS, an e-commerce fashion retailer can work together with Gen Z youth as well as campaigners to start a new brand in India. The company can introduce effective campaigning techniques to enhance to attract new customers worldwide. The company can create a personality test to increase awareness of the brand to show its new and improved collection to the target audience. ASOS can use a promo code on the exit screen to attract customers to make a buyer at the end. ASOS can introduce the “As Seen on me” initiative in mobile apps which facilitates the customers to share pictures of themselves on the platform. This helps the business to create a community around, offer trendy inspiration, and provide an opportunity to show their brand.

Conclusion

In sum up, the report has provided deep insight into ASOS expansion into Indian Territory. This has highlighted the company's focus on more sustainable production to attract customers and enhance their brand awareness. The company by focusing on marketing strategy can grow at a large scale. ASOS by doing partnerships with Indian vendors and content creators can create a strong brand image. The company should also introduce new marketing campaigns to promote its products within the marketplace, as customers are attracted by efficient campaigns. The company can grow at larger scale by investing more in research and development to gain a competitive advantage.

References

Books and Journals

Adamkiewicz, J., Kocha?ska, E., Adamkiewicz, I. and ?ukasik, R.M., 2022. Greenwashing and sustainable fashion industry. Current Opinion in Green and Sustainable Chemistry, 38, p.100710.

Alzoubi, H., Alshurideh, M., Kurdi, B., Akour, I., and Aziz, R., 2022. Does BLE technology contribute towards improving marketing strategies, customer’ satisfaction, and loyalty? The role of open innovation. International Journal of Data and Network Science, 6(2), pp.449-460.

Djafarova, E. and Bowes, T., 2021. ‘Instagram made Me buy it’: Generation Z impulse purchases in the fashion industry. Journal of Retailing and Consumer Services, 59, p.102345.

Doole, I., Lowe, R. and Kenyon, A., 2019. International marketing strategy: analysis, development, and implementation. Cengage Learning.

Eriksson, T., Bigi, A. and Bonera, M., 2020. Think with me, or think for me? On the future role of artificial intelligence in marketing strategy formulation. The TQM Journal, 32(4), pp.795-814.

Gazzola, P., Pavione, E., Pezzetti, R. and Grechi, D., 2020. Trends in the fashion industry. The perception of sustainability and circular economy: A gender/generation quantitative approach. Sustainability, 12(7), p.2809.

Hawkins, D., 2020. Consumer behavior: Building marketing strategy.

Katsikeas, C., Leonidou, L. and Zeriti, A., 2020. Revisiting international marketing strategy in a digital era: Opportunities, challenges, and research directions. International Marketing Review, 37(3), pp.405-424.

Kingsnorth, S., 2022. Digital marketing strategy: an integrated approach to online marketing. Kogan Page Publishers.

Lorenzo-Romero, C., Andrés-Martínez, M.E. and Mondéjar-Jiménez, J.A., 2020. Omnichannel in the fashion industry: A qualitative analysis from a supply-side perspective. Heliyon, 6(6).

Morgan, N.A., Whitler, K.A., Feng, H. and Chari, S., 2019. Research in marketing strategy. Journal of the Academy of Marketing Science, 47, pp.4-29.

Thorisdottir, T.S. and Johannsdottir, L., 2020. Corporate social responsibility influencing sustainability within the fashion industry. A systematic review. Sustainability, 12(21), p.9167.

Varadarajan, R., 2020. Customer information resources advantage, marketing strategy and business performance: A market resources based view. Industrial Marketing Management, 89, pp.89-97.

Online

The economic and social impact of ASOS, 2022. Online. Available through. :<https://www.oxfordeconomics.com/resource/the-economic-and-social-impact-of-asos/>

ASOS.com, 2023. Online. Available through. :<https://www.similarweb.com/website/asos.com/#overview>

ASOS.com, 2023. Online. Available through. <https://www.asosplc.com/news/asos-and-centresustainable-fashion-drive-innovation-circular-design-new-guidebook/#:~:text=Targets%20include%20ensuring%20that%20100,in%20key%20markets%2C%20to%20enable>

Adrienne Bosch , 2023.Effectiveness of influencer marketing. Online. Available through. :< https://peertopeermarketing.co/fashion-marketing-agency/#:~:text=There%20are%20many%20types%20of,%2Dbranding%20campaigns%2C%20and%20more.&text=A%20fashion%20marketing%20agency%20will,strategically%20recruit%20the%20best%20partners.>