Asos posted a $379M loss this year, yet CEO Calamonte remains unfazed by competition from Shein or Vinted. Calamonte believes the fragmented market leaves room for Asos’ customer-focused model. He noted a 24% rise in “newness” sales, despite only a 6% increase in stock. Asos will double its “test-and-react” line, aiming to adapt swiftly to trends. The CEO’s focus on Asos’ unique styling, curated brands, and fast supply model signals confidence in the retailer’s position, even as losses widen.
Asos CEO José Antonio Ramos Calamonte believes the competitive fashion market has ample room for diverse brands. Despite the rise of rivals like Vinted and Shein, Calamonte emphasized that fashion leaders hold only 4-6% of the market, creating plenty of opportunity. “It’s an incredibly fragmented market,” he said, with potential for Asos to thrive by focusing on its strengths. Rather than worrying about competitors, Calamonte noted Asos’ “obsession” remains on perfecting its own offerings and serving customers well.
Asos reported a $379M loss for the year, yet Calamonte remains optimistic. The CEO defended Asos’ business model as a “winner,” citing its curated fashion selection, focus on styling and photography, and blend of third-party brands like Arket, On, and Nobody’s Child alongside Asos’ own range. Calamonte reiterated confidence in Asos’ value proposition, which targets fashion-conscious twenty-somethings, with no plans to broaden focus to older demographics. This steady approach, he suggests, is key to long-term success.
Calamonte highlighted Asos’ “test-and-react” strategy, where products are designed and delivered within two to three weeks. This fast-turnaround model now accounts for 10% of own-brand sales, and Asos plans to double that share next year. By focusing on flexibility, Asos aims to respond faster to consumer trends. The company’s “newness” sales rose 24% in the last three months, despite a modest 6% increase in inventory, showing demand for Asos’ full-price items even amid rising competition.
Despite its widening losses, Asos remains committed to a turnaround. Calamonte acknowledged market volatility but expressed faith in Asos’ adaptability. Asos has been trimming down inventory and leaning on its unique value in styling to attract customers. The CEO pointed to recent positive indicators, suggesting Asos can succeed by doing “a good job” and remaining nimble. With customer demand strong for its trend-led offerings, Calamonte believes Asos is well-positioned to improve its performance over time.
Is Asos too optimistic about its competitive edge?
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