Online fashion retailer ASOS has seen its profits plunge.
Online fashion outlet ASOS’ pre-tax profits fell 87% to £4m for the six months to 28 February against the same period in 2018.
ASOS said it had managed to stabilise sales, which rose 14% to £1.3bn for the period.
But the firm was quick to contribute marketing changes to a fall in visits to its websites and a drop in its search engine rankings.
However, nine times out of ten, marketing is the saviour of many brands, especially fashion outlets.
Last year we reported the strong success of online competitor, Boohoo, whose sales were up a whopping 40% last year.
Its success comes down to a series of tactics; from understanding customer personas, heavy advertisement of low-price pieces, and an increased budget for influencer marketing campaigns.
The brand has hit a sweet spot in a tough fashion market because its low prices keep wardrobe updates within reach of even the tightest budgets and when paired with a strategic marketing campaign, it’s a recipe for success.
Unlike ASOS, which is well-known for carrying a broad and expansive range of designers at a higher price point, Boohoo focuses on stocking key seasonal trends at low prices. While 11% of ASOS products are in the £5 to £9.99 category, this rises to 23% for Boohoo, which offers full garments for such cheap prices.
And low-cost pieces aren’t the only thing keeping Boohoo customers coming back. Influencer marketing has been harnessed and perfected by the Boohoo brand. From producing clothing lines with various celeb stars including Paris Hilton and Gemma Collins to gifting Love Island contestants’ items to wear on the show, Boohoo knows exactly how to use the power of influence to advertise, especially to its ever-impressionable target market.
On the other hand, ASOS has been struggling to compete, posting product-based and unpersonal social posts on its feeds, followers fail to relate to the content.
Don’t struggle, be proactive and mix things up
The UK’s fashion industry has been trembling under extreme profit pressures for some time now. Yet as ASOS blames its low margins on its marketing efforts, you can’t help but wonder why it has taken them so long to realise?
The key takeaway is that if your marketing efforts aren’t working as well as they should be, or you’re noticing abnormal changes in your campaigns, take charge and be proactive, rather than leaving it too late.
It’s easy to get caught up in old habits that can become tired and boring. Therefore, it’s critical to ensure you’re mixing up campaigns on a regular basis and are aware that what might be working now, may not continue to work in the future.
Purpose Media can help measure the success of your campaigns, creating innovative ideas to freshen up marketing efforts and show what you’re doing is working.
Allow us to give you a helping hand.
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