Over the last 10 years Marks & Spencer has continually held the crown as UK fashion retailer, however they could be about to be knocked off the top by rapidly growing online retail businesses like ASOS. Online retailer ASOS, who originally began solely on the internet and not as a high street chain has had a business model based on internet sales and online marketing at the heart of its growth strategy.
Since the development of smartphone and tablet technology, online retail has dramatically changed the way in which we shop. ASOS was one of the early online retailers to establish their brand and adopt a new way for young consumers to shop, by promoting latest clothing designs at affordable prices.
At the other end of the scale, long running and well established high street chains such as Marks & Spencer have fought hard to keep up with online models in order that they too may establish an online presence. Subsequently Marks & Spencer’s has unfortunately seen a steady reduction in sales over recent years as it has struggled to adapt and respond quick enough to this new method of sales, whilst the likes of online retailers ASOS has continued to see a gradual growth and is now planning a 1500 employee’s expansion over the coming year.
Online Retailers are set to leapfrog traditional high street brands
City analysts have highlighted that it’s only a matter of time before ASOS leapfrog over Marks & Spencer’s. Mark Photiades, retail analyst at Cantor Fitzgerald, said: “The valuation gap between the two businesses is the smallest it has ever been and we believe that it will not be long before ASOS has a greater market value than M&S. It will be a seminal moment.”
Are you running an online business or thinking of setting up as an online retailer? Here at Crendon Insurance we work hard to support online retailers who are looking to sell goods online from clothing to electrical goods, health & beauty products to toys, plus much more. For more information please contact our online retail team or take a look at our online retail insurance page.
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