Asos CEO remains confident in the company’s strategy amidst growing losses and competition.
- José Antonio Ramos Calamonte sees ample market space despite rivals Shein and Vinted.
- Asos focuses on delivering quality service rather than emulating competitors.
- Younger demographics are targeted with a test-and-react model, boosting sales.
- The volatile market is acknowledged, but Asos continues to adapt to consumer demands.
José Antonio Ramos Calamonte, the CEO of Asos, maintains a strong belief in the company’s strategic direction despite the challenges posed by competitors Shein and Vinted. Speaking on the competitive landscape, Calamonte remarked, “this is an incredibly fragmented market,” highlighting that even market leaders hold only 4% to 6% share, which, he argues, provides sufficient opportunity for all companies that excel in their services.
The CEO emphasised the company’s focus on its customer experience rather than fixating on the competition. “We are not worried about Vinted or about anyone else out there. We worry about ourselves,” he stated, indicating a strategic focus on internal performance rather than external threats.
In particular, Calamonte addressed the rise of Shein, a fast-fashion retailer gaining traction with low prices. Despite increasing losses, with Asos reporting a £379 million loss for the full year, Calamonte stands by their business model calling it a “winner” due to its distinct offerings in styling, photography, and a curated range of both in-house and third-party brands.
Calamonte dismissed the notion of shifting the company’s target demographic in response to competitive pressures, particularly with Shein being popular among Gen Z. He pointed out that the ‘test-and-react’ model, now accounting for 10% of own-brand sales, will double next year, and primarily attracts a younger audience rather than shifting to an older demographic.
Despite financial setbacks, Calamonte expressed optimism regarding Asos’s recent performance. Sales of new products increased by 24% over the last quarter year-on-year, even with only a 6% rise in stock, signalling robust demand for full-price items. Although acknowledging the volatility of the fragmented market, he is confident in Asos’s capacity to meet customer needs effectively.
Asos remains steadfast in its approach, focusing on enhancing customer experience over competitor strategies in a complex market.
