Beijing daily news (reporter Li Duo Wang Mingyang) the UK’s largest fashion electricity supplier ASOS into China in third years will exit. ASOS announced to reduce regional operations cost, the group will shut down China business. ASOS Chinese version of the site Asos.cn will be closed, China distribution center and the office in Shanghai will also stop operations. The future will be delivered to the Chinese market by the international station Asos.com.
ASOS CEO Nick Beighton said the group will be at a lower cost and more efficient mode for Chinese customers. Future group is still able to ensure the same level of service with the official website of china. The closure of the Chinese business, the group will cause a closing cost of 10 million pounds and operating loss of $4 million. At the same time, Nick Beighton acknowledged that the Chinese market is different from other markets, the group’s products have not been recognized by Chinese consumers.
for many international fashion brands, Chinese market is undoubtedly a hotly contested spot. ASOS opened in November 3, 2013 Chinese website, and will be announced in the next two years invested 100 million yuan for the market to pick Chinese group own brand products in the local sales, and the construction of a customer service, distribution, payment fully localized operations team. The group also settled in Tmall in 2014, trying to attract more attention and turn it into its own user.
Beijing Daily reporter found that the current ASOS Chinese website and Tmall flagship store is being carried out and packed 5 fold promotions. The number of Tmall ASOS shop is only 185 thousand, and larger ZARA shops 355 thousand, 1 million 646 thousand of the gap between the number of UNIQLO store, the most popular is a price of 118 yuan of denim shorts, sales of less than 1000, such data even as a popular Taobao stores. At the same time, according to the group’s data, China is currently providing 6000 kinds of products on the platform, while the group’s official website provides up to 80 thousand kinds of products.
clothing expert, general manager of Shanghai good habitat Brand Management Co., Ltd., said Cheng Weixiong, foreign brands into China often can not get a thorough understanding of the Chinese market, just right localization become a problem. ASOS as the UK’s largest fashion electricity supplier, the richness of its products and keep up with the trend of the design has not been well demonstrated in the Chinese market. In the group with parity products, facing ZARA, UNIQLO in China has long been paving the way for the fast fashion giant and Taobao business platform competition, lack of attraction, and the market is lagging behind the reaction, let it fall into the "underachievement" situation.