Asos CEO José Antonio Ramos Calamonte addresses concerns over competition from Shein and Vinted amidst mounting losses.
- Calamonte emphasizes the fragmented fashion market, indicating room for competition despite their small market shares.
- The CEO focuses on Asos’ commitment to customer satisfaction instead of being preoccupied with rivals.
- Despite a reported £379 million loss, Calamonte remains optimistic about Asos’ business model and unique market proposition.
- The company plans to double its “test-and-react” product model, focusing on younger consumers and current trends.
In the face of stiff competition from fast-fashion giants like Shein and resale platforms such as Vinted, Asos CEO José Antonio Ramos Calamonte has taken a confident stance, asserting that the company is “not worried” by these rivals. This confidence comes despite significant challenges, as Asos recently reported a £379 million loss for the year.
Calamonte points out the highly fragmented nature of the fashion market, where even leaders possess no more than a 6% market share. This fragmentation, he argues, provides ample space for various players to thrive, provided they maintain a focus on quality and customer service. “We worry about ourselves,” he stated, emphasizing that Asos’ primary focus is to excel in serving its customers rather than being distracted by competitors.
When questioned specifically about Shein’s impact, known for its ultra-affordable prices that are capturing significant market share, Calamonte was unfazed. He described Asos’ business model as a “winner,” highlighting its curated, trend-driven offerings and the variety of third-party brands it positions alongside its own.
Despite the losses, the CEO remains steadfast in his belief in Asos’ unique market proposition, which includes a strong emphasis on styling, photography, and a broad mix of brands such as Arket and On. Moreover, Asos’ “test-and-react” strategy, aimed at younger consumers, is anticipated to grow significantly. This model, which currently represents 10% of own-brand sales, is expected to increase to 20% in the next fiscal year, indicating a clear strategic direction.
Calamonte asserts that despite the volatile market conditions, Asos is experiencing a successful turnaround. Recent performance indicators show a 24% increase in the sales of new products year-on-year, with only a 6% increase in stock, underscoring the strong demand for full-price merchandise. Significantly, the CEO remains confident in Asos’ capacity to adapt and meet consumer demands, encapsulated in his belief that when they perform their duties well, positive results follow.
Asos remains focused on its strengths and strategic initiatives, viewing competition as a motivating factor rather than a threat.
