Amid financial losses, Asos CEO remains unworried about fast-fashion rivals like Vinted and Shein.
- José Antonio Ramos Calamonte emphasises the fragmented nature of the fashion market, seeing opportunity despite competition.
- Asos focuses on satisfying its customers, with a strategic ‘obsession’ rather than concern for rivals.
- Despite challenges, Asos sticks to its youthful demographic and unique market offering.
- Recent performance highlights a demand for new styles, reinforcing Asos’ belief in its turnaround strategy.
Asos is experiencing financial challenges, yet CEO José Antonio Ramos Calamonte exudes confidence in the company’s ability to face competitors such as Vinted and Shein. He articulates that the fashion industry remains fragmented, with market leaders controlling only 4 to 6% of the share. Asos views this fragmentation as an opportunity, provided the company continues to prioritise the quality of its customer offerings.
Calamonte has made it clear that Asos’ primary focus is internal, aiming to refine its customer-centric approach. The CEO’s remarks reflect a strategy where the competition is acknowledged but not feared, highlighting a forward-thinking attitude. He stated, ‘Today is Vinted, tomorrow there will be something else, there will always be new formulas,’ encapsulating a belief that while competitors will come and go, Asos’ commitment to its vision remains the cornerstone of its strategy.
Addressing Shein’s competitive pricing and growing market share, Calamonte reasserted his confidence in the viability of Asos’ business model, which he described as a ‘winner’. This model is built on styling, photography, a curated trend-led offer, and a diverse range of third-party brands alongside its own.
Despite financial losses, including a recently reported £379 million annual shortfall, Asos is not considering shifting its target demographic to older consumers, even as competitors like Shein attract Gen Z shoppers. The company’s initiatives, such as its ‘test-and-react’ model, are increasingly focusing on younger customers, with plans to double this model’s contribution to own-brand sales by the next fiscal year.
Calamonte pointed to recent sales figures as evidence of Asos’ resilience and adaptability, indicating strong demand for ‘newness’ in their product lines. Sales increased by 24% year-on-year despite only a 6% rise in stock, showcasing effective management and consumer appeal. While acknowledging market volatility, Calamonte remains optimistic about Asos’ capability to fulfil customer expectations and adapt to market trends.
Despite market volatility and financial challenges, Asos remains focused on its strategic vision and commitment to its customer base.
