It’s all about mobile: Asos boss
Online retailer, Asos, posted a slight increase in pretax profit to £47.5 million for the year to August 31, with sales up 17 per cent to £1.12 billion. UK sales rose 27 per cent while international sales were up 11 per cent.
Other standout figures in the company’s results presentation were the percentage of traffic and orders being placed from mobile devices.
“This really has been another year of mobile,” said Asos CEO, Nick Beighton.
“In the last 12 months mobile penetration has increased throughout our business. In August 60 per cent of our global traffic came from mobile devices alone.” He added, just in the UK in August, 50 per cent of orders – not traffic – came from mobile devices.
The presentation was Beighton’s first as CEO, having stepped up from the position of CFO in September. He said the online retailer’s mission, to be the number one fashion destination for twenty-somethings, remains the same. He won’t be changing the Asos culture or its way of doing things, but he acknowledged the world Asos plays in is changing fast.
“It’s more about mobile, it’s more about social, it’s more about content,” he said.
The online retailer’s strategy is made up of four key pillars: great fashion at a great price, be awesome on mobile and, deliver engaging content and experiences, supported by best in class service (ie a friction-free experience from logistics through to customer care).
In the coming year Asos will focus far more on the UK, which is still its biggest market, Europe, US and, China.
In China the brand is “still in start up mode” and “all about planting the seeds for future growth.” Asos expects losses of £5 to £7 million over the next 12 months in China as it builds its offering.
Australia won’t be attracting the same level of investment as other markets globally.
“In Australia we have a great business and enjoy the leading market share,” he said. “We will continue to improve that experience for our customers but it won’t be attracting the same level of investment as the other territories I’ve referred to.”