Essays on Internal Factors Influencing Consumer Decision Process - the UK Asos.com Case Study

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The paper "Internal Factors Influencing Consumer Decision Process - the UK Asos. com " is a perfect example of a business case study.   asos. com is an online fashion store in the UK that engages in the business of online fashion retail as well as beauty products (Asos. com 2014). The company was incorporated in 1998 and has its headquarters based in London, United Kingdom. It boasts of the biggest online fashion retail market share in the UK. asos. com offers a wide array of branded as well as own-label products from menswear, womenswear, footwear, jewelry, and footwear (Bloomerg Businessweek 2014).

Basically, on the company website, one can find all sorts of men and women clothing, beauty products and accessories. asos. com has over 9000 products available online at any given time and in order to keep customers visiting the website, approximately 450 new items are added every week (Bloomerg Businessweek 2014). The online retail fashion store targets different demographics in different countries and has developed websites for the markets in the United Kingdom, Spain, Russia, Australia, Italy, Germany and France. In all these markets, the company’ s target market is the more fashion-conscious demography between the ages of 16-34 (Bloomerg Businessweek 2014).

Due to this broad customer base, asos. com receives about 3.3 million unique shoppers monthly and boasts of 1.8 million registered shoppers (Asos. com 2014). At the helm of the asos. com company is a board that consists of five executive directors, two of whom are non-executive while the other three are executive directors. The two-non executive directors do not have a role to play in the day to day running of the business and only take part in the board due to the fact that they bring with them expertise and experience that has played a huge role in guiding the strategic direction of the company (Bloomerg Businessweek 2014). Asos. com has enjoyed strategic steady growth ever since its inception and this has been shown in its results (Ruddick 2012).

It has been able to meet increased customer demands thereby increasing its market share in the industry. The company has managed to leverage the availability of the internet to consumers and this has been the primary reason for the company’ s rapid growth (Ruddick 2012).

It has been able to effectively tap into the growing online retailing market. For instance, in 2007, roughly seven years after its incorporation, Interactive Media in Retail Group carried out research on asos. com that showed that: Online shopping in the UK had reached the £ 30 billion mark in 2006. The number of online shoppers in the UK had grown by 56% in just under four years; 16 million in 2003 to 25 million in 2006. In the same four year period, internet access had grown by 45% with a whopping 42 million people having access to the internet in 2006, up from 29 million in 2003. Broadband connections over the same four year period tripled with more than 12.7 million broadband connections being reported in 2006. The retail industry, where asos. com is part of, has over the years contributed a lot towards the economy of the United Kingdom.

For instance, the retail industry contributed £ 152 billion to the United Kingdom economy in 2011 alone (Rhodes 2013, p. 3). This accounted for a massive 11.3% of the total economic output by all industries.

Online sales have contributed massively towards the retail economic contribution as it rose from 2.7% in January 2007 to 9.7%b in January 2013 (Rhodes 2013, p. 6). The average weekly online retail sales in December 2012 had peaked at £ 844 million. This increase in online sales can be attributed partly to a shift in online stores because, in 2008, online businesses accounted for 3.4% of all businesses in the retail industry in the UK. This number rose to 6.8% in 2011. The figure below shows the steady growth of online shopping/sales from 2007-2013 (Rhodes 2013, p.

6).

References

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Asos.com. (2014). About ASOS. Retrieved from http://www.asos.com/au/infopages/pgeaboutus.aspx?xr=1&mk=VOID&r=3

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Ruddick, G. (2012, September 19). Asos growth accelerates in the UK: The online fashion retailer has accelerated its growth in the UK despite pressure on the high street from the recession. The Telegraph. Retrieved from http://www.telegraph.co.uk/finance/newsbysector/retailandconsumer/9554077/Asos- growth-accelerates-in-the-UK.html

Wells, V., & Foxall, G. R. (2012). Handbook of Developments in Consumer Behaviour. Cheltenham: Edward Elgar Publishing.

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