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The success story that is ASOS

22nd Nov 2012
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According to recent reports, online fashion retailer ASOS has posted a pro-forma pre-tax profit of £40 million compared to last year’s £12.6 million. Revenues surged during the last year as the company enjoyed strong trading in overseas markets such as America and Australia. This is promising news for investors – who should not underestimate the pivotal role of accountants who are helping to make the magic happen.

The rise of international online fashion retail has created a need for experienced accounting professionals to pioneer the management of high volume fast fashion on a global scale. Starting life in 2000 as As Seen on Screen, a clothes website selling replicas of outfits worn by celebrities, ASOS now offers 50,000 products from dresses to boots to make-up, and adds 1,500 new lines every week. The brand’s ambitious jump from a niche boutique to fashion powerhouse has been rapid to say the least. Revenues at the fashion site jumped 37 per cent during the year from £403 million to £552.9 million as a surge in international sales offset slower growth in ASOS' home market of the UK. International sales jumped 64 per cent to £332.6 million, with American sales soaring 91 per cent to £49.6 million. Sales in the UK rose by ten per cent to £205.3 million.

This unprecedented rise in revenue can be attributed to a solid international growth strategy devised by creative financial controllers. Globally aware accounting professionals are exploiting world markets to guarantee prosperity despite Europe’s uncertain economic climate. ASOS now delivers to 190 countries worldwide and 65 per cent of its £552.9 million of sales are from outside of the UK.

The concept of online retail is comparatively recent, and brands at the forefront today are writing the rulebook on efficiently managing cross-continent B2B and B2C transactions on-mass. The worldwide free delivery service is one of the cornerstones of ASOS’ business because its shoppers are mainly fashion-conscious people in their twenties who don’t have a lot of spare cash. The average order costs £60 and 30 per cent of orders are returned. The rapid expansion of ASOS’ sales means the company has been able to bargain with logistics companies on price, but not by cutting them to the bone. The economies of scale mean that even small fluctuations in margins can have a significant impact the bottom line. The planning required to manage the financial aspect of international supply chain logistics at this level should not be underestimated.

The future looks bright for ASOS. And with rumours circulating that the brand is set to crack the Chinese and Russian Markets in coming months - its success relies on professionals who are able to confidentially manage and control profitability through rapid growth into uncharted territory.

If you are up to the challenge forward your CV to [email protected]

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By User deleted
23rd Nov 2012 19:47

Yes, but ...

... the free delivery is funded because the o/seas customers pay the same as the UK ones!

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