ASOS News Update: Rise in Second Hand Clothing Sales
ASOS news update: As the UK’s financial problems continue to pull on the purse strings of the public; there has been a rise in sales of second hand clothes.
It has been noted that there has been a rise in the number of customers choosing to buy second hand clothes. Most likely due to the seemingly endless squeeze on their customers’ disposable incomes, Nick Robertson the chief executive of the internet based clothing company ASOS (As Seen On Screen) has noted this rise.
“‘Young, fast fashion has always been reasonably good value,’ Mr Robertson said.
But he said the success of the likes of budget retailer Primark, which has been taking increasing market share, is evidence of growing demand for cheap clothing and ‘shows that value is what people are looking for’.
ASOS, whose core customers are those aged in their twenties, has introduced Primark ranges into its online store on a trial basis and has cut the price of its own-brand products by around 9%, he said.
‘The value model has changed. There is changed perception of value. The fashionability of products will get better within the value range,’ he said.
The company is also seeing rising demand for its second-hand ASOS Marketplace – launched 3 years ago – which allows customers to sell on used clothes and provides an outlet for small-scale producers.
‘There is big underlying demand amongst our customers for second hand [clothes],’ Mr Robertson said.
‘It is getting bigger and bigger,’ he said.
While much of the retail sector is struggling to maintain top-line growth, ASOS posted a 33% rise in revenues and double-digit profit growth when it updated the City on its first-half performance in April.
But Mr Robertson, who co-founded ASOS in 2000, is dismissive of moves by established ‘bricks and mortar’ retailers into the online space, arguing that these are defensive attempts to retain custom rather than to expand.
He said that ASOS has continued to seek to innovate, for instance by providing tools designed to allow customers to buy the clothes they find fit them best based on previous purchases and their favourite items.
He believes that, while internet shopping was initially an urban phenomenon, it is now common across the UK and will accelerate as many retailers shrink their estates.
But he is dismissive of complaints by high street retailers that they are being unfairly penalised by a rising tax burden, such as increased business rates.
“Retailers do not have to have stores,” he said. “They choose to have stores.”
ASOS is a UK-based company and pays corporation tax in this country, Mr Robertson said.
But he declined to comment on the tax arrangements of the likes of Amazon, which is seeking to compete with ASOS in the online clothing space.
He did call on the European Union to do more to harmonise rates of sales tax.
While some UK retailers argue that fashions vary so greatly from country to country that international expansion is very difficult, Mr Robertson noted the cross-border success of the likes of H&M and Zara, and said ASOS had successfully launched into markets including the United States, France, Germany, Spain, Italy, Russia and Australia. Now just 40% of is revenues are from the UK. The company is now launching in China.”
As customers struggle with their finances the desire and demand to buy clothes does not change but the amount they have to spend on luxury items does. The demand for cheap clothes has risen, but if customers can buy good quality items second hand then they get the best of both worlds.
This article was originally sourced from www.heraldscotland.com. For more information on the products offered by ASOS, contact them directly and speak with their customer services department. For all contact information, Click Here.
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