Asos plots marketing push as sales rise
Share
Asos.com is planning to switch focus to above the line advertising as it looks to build on a 35% revenue gain last year.
The online fashion retailer steadily increased its marketing efforts last year through sponsorships but will now turn to more “traditional” forms of marketing to drive awareness and sales, according to chief executive Nick Robertson.
Announcing financial results for the year, Asos says marketing spend increased 44% in the year to 31 March.
The retailer sponsored the “Next Top Model” series on Living TV and the Capital Radio Summertime Ball in the period. It also partnered with Diet Coke for an on-pack promotion in February.
Asos claims the marketing push helped increase prompted brand recognition amongst women aged 16-34 from 46% in November 2009 to 62% by March.
Group revenues increased to £223m last year, the company says, while pre-tax profit increased by 44% to £20.3m.
The online retailer is planning to launch in three new territories by the end of year, one of which is said to be the US. It is also to allow independent boutiques and designers to sell via the site.
Robertson says it is “optimistic” that the current financial year “will be another year of strong growth”.
YouGov Insight:
· Women account for 70% of all adult clothing and footwear sales value and are also responsible much of the time for buying childrenswear.
· The size 18+ (and larger men’s) sectors are primed for continuing strong growth, with rising obesity rates.
· Although more of a necessity-only purchase than any other clothing category, sales of women’s underwear have started to show real growth.
· 70% of clothes shoppers say they buy clothes that fit their style.
· 57% of clothes shoppers say they have a few favourite stores that they always look at first.
· 40% of clothes shoppers say that they look for low prices first
