Business Innovation Report www..com i
The purpose of this report was to examine current business processes administered by the ASOS online fashion retailer. At the same time an excellent opportunity to announce and introduce the forthcoming implementation of the newest innovation from ASOS on their website, the ‘Virtual Fitting Room’.
The problematic element in most online fashion retailing has been identified as consumer hesitancy. Other product groups such as perishables or cold chain logistics, consumer electronics and books have disregarded this reluctance, while in some cases online fashion has stalled. This is largely down to one singular reason. That is the inability and coupled frustration for consumers to see how a garment looks on them before purchasing.
ASOS’s main customer base is twenty something male and females. This is the originally intended and continually serving market ASOS is working for. In turn lies the requirement to envision a never before seen or arguably attempted consumer conception that appeals to and is manufactured specifically for the Generation-Y demographic. They are the gadget loving technological pioneers, who operate their smartphones whilst wearing the latest denim.
Many factors have to be considered when researching, developing and ultimately implementing a new design into an information communication business, and one that is so successful to begin with. ASOS’s last gross profit was up 51% on the previous year to 252million pounds. The nature of such an innovation principally built from the foundation of the information technology landscape is that its initial and running costs are low in correlation with its potential profits.
Title Cover i
Executive Summary ii
ASOS Brief Histor,y page 4
Introduction, page 5
Primary ASOS Innovation, page 6 * What is the ASOS ‘Virtual Fitting Room’?
Market Gap & Value Analysis, page 7 * Conception * Customer * Time to Market * Costings
Porters Five Forces Competitive Analysis, page 10
Conclusion, page 11 * Recommendations
Appendices, page 12 * Appendix 1 * Appendix 2 * Appendix 3 * Appendix 4
Reference List, page 15
ASOS Brief History
2012 Opened first international office in Sydney, Australia
2011 Launched specific Australian, Italian and Spanish language ASOS sites
2011 Launched iPhone and iPad app
2011 Launched ASOS Fashion Finder
2011 Launched ASOS Facebook Shop
2010 Launched ASOS Marketplace
2010 Launched American, German and French language ASOS sites
2010 Achieved CarbonNeutral® company status
2009 Launched ASOS Life
2008 Launched ASOS Outlet
2007 Introduced ASOS own label for Men
2007 Launched ASOS Magazine
2006 First UK online store to launch catwalk
2004 Introduced ASOS own label for Women
2004 Maiden profit
2001 ASOS PLC Holdings was admitted to AIM on the LSE
2000 ASOS launched
If you have access to the Internet, and a handy method of payment, you can purchase almost anything online. Whether it be on your notebook PC, smartphone or the alike, and you know what you want to purchase, chances are the entire transaction can be completed within as little as a few minutes. Then you just have to wait for the item to arrive at your doorstep, generally within a few days, or even the next day. This is the advancement and progressive nature of life that online retailers are trying to capitalise on. The online fashion retail store ASOS, epitomises everything that online retail should be. ‘’It is very simple’’, is what Rob Bready, product and trading director at ASOS replied when asked what he thought the key to the company’s success is. He further stated ‘’the site is beautiful, it’s easy to use, and delivery is free’’ (Bergin, 2011).
By formulating an avant-garde innovation to further revolutionise the online retailing sector, ASOS is simply repeating what it has been