Analysis Of Asos Online Marketing Strategies - Essay Example

analysis of www.asos.com online marketing strategies 2009 Foreword: For this report I have chosen to dwell upon online marketing strategy of www.ASOS.com – the UK fashion goods e-tailer. The topics from the lecture programme that I have picked to elaborate upon are Marketing strategy for the virtual world and Website design and interaction. 1. Introduction: company’s background Clothes retail business in the 21st century faces incredible changes, the most fundamental ones being connected with the Internet. Fashion business in Internet grows increasingly more popular, and brings more and more profit. It has been noticed that “British shoppers are becoming fickle, deserting their old friends in droves, and has even cast doubt on the survival of the high street”. (Prideaux 2004, 30) To understand what attributes are implemented in the online retail sector, we will consider the way one online fashion retailers www.ASOS.com markets its products and brands. This UK online fashion store was started in 2000. ASOS.com offers an extensive range of top women’s and men’s fashion, designer labels, lifestyle accessories and cult beauty brands at very competitive prices. As one of the top two most visited online stores in the UK, sales at ASOS rose by 39% t to £18 million in 2007. The number of registered users of the Asos web site increased by 60% to 960,000 over the year. It plans increased its revenue from third-party advertising by almost 70% in 2008. Some of the advantages of the company are as follows: www.ASOS.com offers to its customers in Europe and the USA a four-day delivery at the cost of £3, and a one-day delivery for £5 only. The customers can pay with either their credit or debit cards, filling in the online enquiry forms. The website of the company has the option of converting the prices from British pounds to dollars or euro. All items are described meticulously, including the material they are made from, length (for dresses and skirts), etc. ‘Clearance’ section of the website presents a wide variety of discounted items sold at very cheap prices. ‘Copying’ the clothes of the ‘stars’ have resulted in many million profit that www.ASOS.com has gained, and helped the company become second largest online shop in Great Britain with the annual revenue growth rate as high as 30-40%. Further on, we will dwell upon the characteristics of the e-tailer’s website in more detail. 2. www.ASOS.com online marketing strategies Consumer buying behaviour when purchasing clothes online The main challenges that online fashion retailers have to face are overcoming the customers’ unwillingness to purchase clothes online, as well as their fears concerning security issues and confidentiality. Because of the constantly increasing competition on the market, online fashion retailers have to implement different ways of attracting customers. There are a number of factors that trigger the buying process. These can range from psychological, sociological and situational influences. According to Schiffman & Kanuk, consumer behaviour online can be studied using frameworks from offline or traditional consumer behaviour. (2000) However, looking closely at the difference between online and offline consumer behaviour, we can identify at least two types of issues that differentiate online consumers from the offline ones. Firstly, online consumers have to interact with technology to purchase the goods and services they need. The physical shop environment is replaced by an electronic shopping environment (website). (OKeefe et al., 2000) Secondly, a greater degree of trust is required in an online shopping environment than in a physical shop. (Keen et al., 1999) Online marketing strategy, though based on the same principles as offline, has the challenges and peculiarities of its own. Fashion goods are considered by some customers to be not very suitable for purchasing them online, mainly because people normally prefer trying clothes and shows on before buying, yet with the development of technologies that allow to create virtual dressing rooms (Manjoo 2000, np), as well as with the help of detailed descriptions and photographs of each item of clothing, standardization of sizes, etc. Virtual retailers have to provide to consumers “significantly better, faster, less expensive, or more entertaining shopping experiences”. (Schneider, 1994, 38) Shopping for clothes on the Internet is not a substitute for the leisure experience associated with conventional shopping. It is very important for online retailers to provide their customers with what is called “customer experience” consisting of two elements – physical and emotional. (Shaw & Ivens, 2005) An effective retail marketing strategy takes into account several issues, from location (search engines, portals, etc. for online retailers), customer service, assortment of products, prices, shop design, etc. In the sphere of selecting assortment, fashion retailers are bound to be guided by such factors as keeping up with the latest fashion tendencies, being relevant to the tastes, age and style of their target audience, and selecting the products of the companies that have powerful brands (in case the clothes are not manufactured under the brand of the company that sells them). Apart from that, the assortment of goods should be really wide so that to correlate with the diverse demands of customers, as well as their preferences (as in cut, colours etc.) and sizes. It should be noted that online retailers have much better opportunities to have a wide range of goods in their e-shops as there is no need for them to “squeeze” as many items as possible into the restricted area of a conventional outlet, or renting huge areas of shops. All in all, for targeting customers purchasing clothes online, there are several issues to be taken into consideration, the first being the emotional aspects of buying clothes. Clothes and accessories being a very important element of every person’s image, their purchase means more for the customer than simply buying a material object – in fact, this is an act meant to reveal the customer’s individuality, and it is of a very emotional character. Another thing that is extremely important for those buying fashion products is the desire to keep up with the latest fashion trends. It is very important that the choice in the online outlets is wide and the items are up-to-date. Many online retailers use external or internal links to the pictures from the latest fashion shows that allow to see how the choice in their shop correlates with the fashion tendencies of the moment. www.ASOS.com website and interaction with customers People tend to choose the places for shopping where they feel comfortable, and this statement is as true for online shops as it is for offline ones. The online fashion retailers have to pay attention to the aspects that help attract and retain customers, and implement techniques allowing to maintain the customers’ loyalty. Apart from alluring design, the virtual stores should also be user-friendly: One of success factors for an online fashion retailer is t the graphic design of the website. The quality of design is one of the key points that a customer considers when choosing to buy clothes from a shop – either offline or online. The importance of the brand name should also not be overlooked. (Jarvenpaa et al. 2000) The design of the ASOS website is very alluring, and makes the customers want to browse the site. The website features fashion items from the latest fashion shows and, especially, celebrities dressed up in smart outfits. The website is very attractive and consistent as well, and reminds that of a glamorous fashion magazine; it contains pictures of the latest fashion trends, new designer collections, designer styles, fashionable hairdos and makeup, etc. The negative feature of the ASOS website is lack of any physical address or phone number on the homepage, yet there is an online feedback form and email addresses of several company’s managers. The layout of ASOS virtual store is very efficient, as it allows to browse the fashion items in accordance with a variety of criteria – from designer or brand name to the category of item, etc. It allows customers to leave their feedback, and offers 24/7 customer support service. Both these features can rightfully be considered advantages, in accordance with the research pinpointing the factors making an online store attractive to the potential customers. The very name of the company reflects two important customer-oriented strategies: on the one hand, under the ‘screen’, the monitor of the PC can be meant, and in this case the name presupposes the possibility for the customers to review the fashion items online in detail before actually buying; on the other hand, the concept of ‘screen’ may include TV, film, and music celebrities, and this transforms the website name into ‘as seen on “stars”’. The range of fashion items and brands is truly astounding at ASOS, and as far as brands are concerned, there is a possibility to browse the items by brand name using the Brand Directory option. For each item, ASOS offers a zoom-in option, and the items can be viewed from different angles and in different colours. The descriptions provided about the clothes and footwear are very detailed and profound. All items are shown on models, and often there is more than one model for one item. When selecting the size of the item, the customer can view the sizes chart. It is possible to pay for the purchase with ASOS in either of the six currencies: UK Pounds, US Dollars, Sweden Kronor, Norway Kroner, Denmark Kroner or Euro. One cannot actually build outfit on the website, however besides under each item, there are recommendations as for what can go with it (‘Customers who bought this also bought…’) Catwalk videos featuring the products offered by the online store are also only available at ASOS. As far as transactional support of customers is concerned, regrettably the website does not allow to add items to the basket directly from the results page, and to do so it is necessary to open a page with this particular item and its description first. Yet this decreases the chances that the customer might be dissatisfied with the product, as she is encouraged to view it closer and read more about it before actually purchasing. On every product, there is a link to the basket, and all four websites allow very simple removing of the items from the basket – it is done with one click of the button. The security issue being extremely important for the customers, all companies selling goods online must have a clearly defined privacy policy. The website contains statements in the section for privacy policy: ‘ASOS are totally committed to protecting the privacy of our site visitors and customers. The ASOS team members are customers themselves of other Internet sites and fully appreciate and respect the importance of privacy on the Internet. We will not disclose information about our customers to third parties except where it is a necessary part of providing a service to you’. As far as the returns policy of the company goes, which is often a matter of paramount concern for the customers shopping online for clothes (since there is always a possibility the purchased item does not fit or suit), the company admits the right of every customer to cancel their order for a full refund. However, from the items that can be refunded, ASOS excludes the ‘items that cannot be returned for hygiene reasons; these items are clearly marked with a + next to the product name.’ This is one more advantage of ASOS, since its customers can be sure they will not buy a product that might be harmful for their health (e.g. lingerie or swimwear that has already been tried on). The website encourages continued shopping by introducing the options to save their shopping lists, track their orders, and track earlier purchases for the registered users. It also allows an opportunity for their customers to register on the website, and apart from the opportunity to view the purchase history, the benefits include getting regular newsletters etc. www.ASOS.com offers the customers well-done descriptions of the collections along with the opportunity to view every item, moreover, the customers can browse the online catalogues by the standard sections as well as by designer’s name (‘Brand Directory’). It is also possible to choose the outfit ‘as seen on’ celebrities – from Paris Hilton to Sarah Jessica Parker and Kate Moss. The website features a ‘star’ in her smart clothes, and next to this photograph they offer fashion items of a similar cut and colour, and at a significantly lower price. Under each item that a customer adds to her basket, there appear recommendations concerning what other items in stock might look good with this one – there is a message ‘Customers who bought this also bought…’ and the pictures of these ‘matches’. ASOS is the only website of the analysed ones that allows to view the catwalk with the items they sell, i.e. to see the video images of the products. ASOS encourages its customers to buy from the company by placing the photos of the stars in similar outfits. Since myths are an important constituent of the culture of ASOS’s target audience, as these people care about such values that are connected with celebrities. Buying from ASOS, they virtually buy symbols, not merely clothes, which make them closer to the world of ‘stars’ that they try to enter or copy (either consciously or subconsciously). The system of values of ASOS’s target audience determines the way the company markets its product, and is reflected even in the brand name of the company. Users of the website have an option to subscribe to regular newsletters that contain fashion and style updates. There is also the possibility to email descriptions of products to friends. 3. Conclusion A very important factor influencing the customer’s readiness to buy online is the quality of the items’ descriptions and the possibility to compare products from a similar range. The quality of customer support should also be taken into consideration. It is very important for online fashion retailers to provide their customers with detailed information about their product. For ASOS, crucial marketing goals are the promotion of their own brand and surely invading new markets. ASOS holds one of the first places among the UK fashion e-tailers in its online marketing effectiveness. ASOS sells not just clothes but style, helping people embody the images they want to copy or allowing people buy designer clothes. Works Cited 1. Jarvenpaa, S.L., Tractinsky, N. et al. “Consumer trust in an internet store”. Information Technology & Management, 2000, 1(1), Pg 45-71. 2. Keen, P., Ballance, C. et al. Electronic Commerce Relationships: Trust By Design. Prentice-Hall, Englewood Cliffs, NJ, 1999. 3. Manjoo, F. Finding the perfect fit online, August 29, 2000. Retrieved on May 15, 2009 from: 4. OKeefe, B. and McEachern, T. “Web-based customer decision support systems”. Communications of the ACM, 1998, 41(3), Pg 71-78. 5. OKeefe, R.M., Cole, M. et al. “From the user interface to the consumer interface: results from a global experiment”. International Journal of Human-Computer Studies, 2000, 53, Pg 611-628. 6. Prideaux, J. “One-stop shopping and e-commerce risk turning the once familiar stretch of boots and Dixons into a sad no man’s land”. New statesman, 2004, 133 (4672), Pg 30. 7. Schiffman, L.G. and Kanuk, L.L. Consumer Behaviour. Prentice-Hall, Upper Saddle River, NJ, 2000. 8. Schneider, F. “Virtual Retailing”. International Trends in Retailing, Arthur Andersen and Andersen Consulting. July 1994, Pg 35-45. 9. Shaw, C. and Ivens, J. Great customer experiences: Palgrave, MacMillan, 2005. Read More