Asos in bother with brands

24 September 2014

bw asos Asos seem to be annoying their third party brands.

The online retailer's’ heavy discounting and regular price promotions have made some companies question their future with them.

One unnamed retailer, who blabbed to the The Telegraph, reckon that Asos' stategy is damaging to their brand, and this particular retailer is considering leaving the site for good.

Alongside Asos' own brand, there's a number of high street and designer partners including New Look, Birkenstock, French Connection, and River Island.

The online user base has increased by 25% over the past year, and now has 8.8 million active users.

Sales over the year increased 27%, leading CEO Nick Robertson to state that that the company was focussed on reaching £2.5bn in sales as its next target.

However, Asos themselves have refused to comment on its relationship with third-party brands.

It isn't a good time for the company, seeing as they're currently on Deathwatch after posting two profit warnings this year and a warehouse fire that dented the company for £30 million in lost sales alone. Shares have been falling and Asos said: “In the new financial year we’ll make significant investments in our international pricing and proposition, as well as in our logistical infrastructure and technology platform. As a result, we expected profit before tax for the year to August 31 to be at a similar level to 2013-14.”

If the third party brands decide they've had enough of Asos, they could 'do a Phones 4u'.

TOPICS:   High Street News

What do you think?

Connect with Facebook, Twitter, or just enter your email to sign in and comment.

Your comment