Asos’ Business Thrives During the Covid Crisis
This advancement is a result of the brand cutting down on its production costs and also less products being returned to the store.
The British online fashion store, Asos, witnessed a major surge in their sales amidst the Corona Virus crisis. The store has managed to increase its profit 4 times during the quarantine period, however the brand has resolved to adopt a more cautious approach because their main customers, i.e. young people, are struggling financially due to the economic crisis the world is faced with.
The fashion company makes most of its profit from the UK but is popular in many countries across the globe. The total customer base of the brand stands at a staggering 23.4 million currently and has led to a record breaking increase in pre tax profit of about 329%.
This advancement is a result of the brand cutting down on its production costs and also less products being returned to the store as during the pandemic people have shopped for comfortable lounge and sports wear instead of fancy dresses, which are more likely to be sent back.
Despite the sudden boom in business, the company’s chief executive, Nick Beighton is worried about the implications on the company’s business if Britain exits the European Union. The fashion brand is also keeping in mind the declining economic situation due to the virus and will focus on providing clothes at prices that are affordable for the vast majority.