Kevin JohnsonASOS is a British online fashion and cosmetic retailer based in Camden Town, London, United Kingdom. Nick Robertson, Andrew Regan, Deborah Thorpe, and Quentin Griffiths founded the company in June 2000 as AsSeenOnScreen to serve the young adult fashion market. In 2003, the company shortened its name from AsSeenOnScreen to ASOS.
ASOS became profitable in 2004 and recorded significant growth in 2020, 2021, and 2022. However, order delivery problems over the Christmas holiday in 2022 discouraged consumers from purchasing items on its platform. The retailer grappled with declining share value and widening losses throughout 2023. In November 2023, the company closed its Midlands warehouse to cut costs and boost profits. This move will save ASOS about £20 million annually. [1]
ASOS is a world-leading online fashion and cosmetics retailer for young adults globally. In the 2010s, ASOS launched a marketplace and online shops and websites in the US, Germany, France, Australia, Italy, Spain, Russia, and China. Boutiques, vintage collectors, retailers, and designers can create virtual stalls on the ASOS marketplace to sell to customers worldwide. In February 2021, ASOS acquired Topshop, Topman, Miss Selfridge, and HIIT from Arcadia Group for $321 million. However, the company plans to sell its Topshop brand in 2023 as part of its efforts to return to profitability. ASOS faces stiff competition from Boohoo, Shein, THG, Zara, PrettyLittleThing, Matches, Farfetch, Sainsbury’s, and Missguided. [2]
Here is an in-depth analysis of ASOS’s top competitors and alternatives:
1. Boohoo
Year founded: 2006
Headquarter: Manchester, United Kingdom
Boohoo is a British online fashion retailer catering to 16–30 year olds. It is the flagship brand of the Boohoo Group. According to analysts’ projections, Boohoo will be profitable in 2025, and ASOS will return to profit in 2024. [3]
Boohoo and ASOS offer fashion clothing targeted at young adults; however, Boohoo doesn’t sell cosmetics. In October 2023, Boohoo revised its strategy to focus on more profitable sales and cut costs by £125 million. The move comes after the company’s sales dropped 17%. Boohoo is the top ASOS competitor and alternative. [4]
2. Shein
Year founded: 2008
Headquarter: Singapore, Singapore
Shein is an online fast-fashion retailer. The company launched its British division in September 2021 and hired 14 employees to manage its UK online platform and marketing campaigns. In October 2023, Shein acquired Missguided to expand its business and market presence in the UK.
Shein was the UK’s 14th largest clothing retailer in 2022, with a 1.7% market share. According to GlobalData, Shein increased its UK market share in 2023 to 2.2% and hit £1 billion in UK sales to become one of the UK’s top ten fashion firms. The company plans to open 30 new UK pop-up shops and leverage Missguided to expand its distribution capabilities in the UK. Shein is the fastest-growing competitor for ASOS. [5]
3. THG
Year founded: 2004
Headquarter: Manchester Airport, England
THG (The Hut Group) is a British e-commerce retail company. The online retailer sells own-brand and third-party cosmetics, dietary supplements, and luxury goods. In 2020, THG got listed on the London Stock Exchange and raised £920 million.
THG sells products online and provides an end-to-end e-commerce service to link third-party brands with consumers. Its market value plunged by 90% to £860 million since its listing in 2020. However, in April 2023, THG’s share price surged 45% after the online retail tech firm received a takeover offer from Apollo. THG is one of the top competitors for ASOS. [6]
4. Zara
Year founded: 1975
Headquarter: Galicia, Spain
Zara is a fast-fashion and beauty company owned by the Inditex group. The brand offers trendy fashion clothing, accessories, shoes, swimwear, and beauty care products. In 2022, Zara had over 170,000 employees and operated around 2,300 stores globally.
Zara and ASOS are fashion and cosmetics retailers, but Zara caters to consumers of all ages, while ASOS targets young adults. In November 2022, Inditex launched Zara Pre-Owned in the UK to allow customers to repair, donate, and resell their fashionwear. The retailer expanded the Zara Pre-Owned service to new markets in 2023, including France, Germany, and Spain. Zara is a formidable competitor for ASOS. [7]
5. PrettyLittleThing
Year founded: 2012
Headquarter: Manchester, United Kingdom
PrettyLittleThing is a British fast-fashion retailer owned by Boohoo Group. The brand caters to 16-41-year-old women in the UK, US, Ireland, Australia, France, the Middle East, and North Africa. In November 2023, PrettyLittleThing founder Umar Kamani pledged to acquire Topshop from ASOS and restore it to its former glory. [8]
PrettyLittleThing’s target audience is only women and extends beyond young adults to 41-year-olds. In September 2023, supermodel Naomi Campbell collaborated with PrettyLittleThing to launch a fashion line. PrettyLittleThing is one of the best alternatives to ASOS. [9]
6. Matches
Year founded: 1987
Headquarter: London, United Kingdom
Matches, formerly known as Matchesfashion, is a clothing retailer owned by Apax Partners since 2017. The company sells luxury fashion brands like Gucci, Prada, and Valentino online and in stores. In January 2023, Matches employed around 15,000 people; however, the retailer cut roles across departments in August 2023 as part of its turnaround plan. [10]
Matchesfashion.com attracts 50 million visitors annually. In January 2023, Apax injected £60 million into Matches to hasten its revival under new management. The new capital was split between £40 million in equity and £20 million in debt. Matches is one of the top competitors for ASOS. [11]
7. Farfetch
Year founded: 2007
Headquarter: London, United Kingdom
Farfetch is a British e-commerce retail company specializing in luxury fashion and beauty products. In August 2023, Farfetch cut ten marketing roles in London and reduced its New York-based tech team. The retailer also plans to downsize its London six-floor head office. [12]
Farfetch is a digital marketplace offering luxury goods from hundreds of brands, boutiques, and department stores globally. In Q2 2023, the company missed revenue estimates due to declining demand in the US and China. The retailer expects to process orders worth $4.4 billion in 2023. Farfetch is one of the top competitors for ASOS. [13]
8. Sainsbury’s
Year founded: 1869
Headquarter: London, United Kingdom
Sainsbury’s is the UK’s second-largest supermarket chain, with over 1,400 stores. The retailer offers fashionwear through sainsburys.co.uk, Tu Clothing outlets, and tu.co.uk. In 2022, sainsburys.co.uk was the UK’s leading fashion e-commerce market by sales. [14]
Sainsbury’s launched Tu in 2004 to offer high-quality and affordable fashionwear for men, women, and children. Tu is the UK’s sixth-largest clothing retailer by volume. In September 2023, the retail giant created fashion destination hubs in 50 stores and Tu outlets. Customers can buy over 30 womenswear brands online at Tu.co.uk. Sainsbury’s is one of the top competitors for ASOS. [15]
9. Missguided
Year founded: 2009
Headquarter: Manchester, United Kingdom
Missguided is a British multichannel retailer offering clothes for women aged 16-35. The company faced mounting debts and several challenges in 2021 and 2022; however, in December 2021, Alteri saved Missguided by paying its debt for a 50% stake. Then, Fraser Group bought Missguided out of administration in June 2022 for $20 million.
Missguided was one of the fastest-growing online fashion brands in 2020 before its decline in 2021. In October 2023, Singapore-based Shein acquired Missguided for an undisclosed amount from Fraser Group. The deal delivers Missguided’s products to Shein’s 150 million global users. This acquisition increases Missguided’s competitive advantage over ASOS. [16]
10. Next PLC
Year founded: 1864
Headquarter: Leicester, United Kingdom
Next is a British multinational retailer with over 43,000 employees. The company has an online presence in over 70 countries and around 460 stores in the UK and Ireland. In 2022, Next was the UK’s second-largest fashion e-commerce market by sales, behind Sainsbury’s and ahead of ASOS in third place.
Next offers clothing, footwear, and home products online and through physical stores. In November 2023, the retailer raised its annual profit outlook for the fourth time in six months to reflect its better-than-expected Q3 2023 results. Its online sales increased 6.5% in Q3 2023, making Next one of the top competitors for ASOS. [17]
11. AllSaints
Year founded: 1994
Headquarter: East London, United Kingdom
AllSaints is a global fashion brand offering womenswear, menswear, and accessories. The company serves consumers in the UK, Europe, North America, and Asia. As of September 2023, AllSaints had around 3,000 employees and 255 stores and franchises across 26 countries.
AllSaints sells fashion products through physical stores, allsaints.com, and mobile apps. The AllSaints App has been downloaded over 75,000 times since its relaunch in March 2023. In September 2023, the company selected NewStore to improve its online platform to offer a unified and seamless shopping experience across all channels. AllSaints is one of the top competitors for ASOS. [18]
12. Sephora
Year founded: 1970
Headquarter: Paris, France
Sephora is a French multinational retailer specializing in personal care and beauty products. The company offers cosmetics, skincare, fragrance, nail polish, beauty tools, body lotions, and hair care. In October 2022, Sephora acquired the UK’s Feelunique website and rebranded it to sephora.co.uk to venture into the UK market.
Sephora is a leading beauty and personal care retailer. Like ASOS, Sephora sells cosmetics online. UK consumers can use sephora.co.uk or the Sephora App to buy the brand’s products. In November 2023, Sephora opened its second UK store in London. It features over 135 brands, including Tarte Cosmetics, Glow Recipe, Supergoop!, Danessa Myricks, and Kosas. Sephora is the best alternative to ASOS for cosmetics. [19]
13. Primark
Year founded: 1969
Headquarter: Dublin, Ireland
Primark is an Irish multinational fast-fashion retailer. The company serves consumers in the US, UK, and 16 European countries. As of October 2023, Primark employed over 70,000 people and operated 436 stores globally and 24 locations across eight US states.
Primark offers affordable fashionwear for all genders and ages, beauty products, homeware, and accessories. In November 2023, the clothing retailer opened new stores in Lake Grove, New York, and Charlotte, North Carolina. The company plans to grow its retail network to 530 locations globally. Primark is a budget-friendly alternative to ASOS. [20]
14. New Look
Year founded: 1969
Headquarter: Weymouth, United Kingdom
New Look is a British fashion retailer offering womenswear, menswear, and clothing for teens. The company sells products online and through its high-street chain stores. In January 2023, New Look employed 1,200 people, but the retailer cut 70 roles in its London and Weymouth offices in March 2023. [21]
New Look is focused on growing its online sales. The company reduced its retail portfolio by almost 50% in a few years, from 800 to around 400 stores. In February 2023, the retailer axed the night shift at its North Staffordshire warehouse to shift its business towards an online-driven model. Still, New Look is one of the best alternatives to ASOS in the UK.
15. Yoox Net-A-Porter (YNAP)
Year founded: 2000
Headquarter: London, United Kingdom
YNAP is an online retailer specializing in luxury fashion. Swiss Richemont Group took over YNAP in 2019 in a £4.6 billion deal. In August 2022, Richemont agreed to sell its 47.5% stake in YNAP to London-based rival Farfetch. [22]
YNAP and ASOS sell fashionwear online, but YNAP caters to consumers of all ages, while ASOS serves young adults. In March 2023, the UK’s Competition and Markets Authority dropped its investigation into Farfetch’s deal to acquire a 47.5% stake in YNAP. This acquisition merges two UK-based online fashion retailers, increasing their competitive advantage over ASOS. [23]
References & more information
- Morgan, A. (2023, Nov 2). ASOS to close Staffordshire warehouse after cost-cutting drive. Retail Gazette
- Timsina, N. (2023, Oct 28). UK’s ASOS exploring sale of Topshop brand, Sky News reports. Reuters
- Faithfull, M. (2023, Apr 13). Will ASOS take on Boohoo in 2023? Charged Retail
- Butler, S. (2023, Oct 3). Boohoo fails to lure shoppers with discounts as rival Shein takes a bite. The Guardian
- Morgan, A. (2023, Sep 18). Shein hits £1bn UK sales as it becomes a top 10 fashion firm. Retail Gazette
- Jolly, J. (2023, Apr 17). THG shares soar on takeover move amid a spate of private equity bids for UK firms. The Guardian
- FN Staff (2023, May 23). Inditex to launch Zara’s second-hand platform in Spain in 2023. Fashion Network
- Morgan, A. (2023, Nov 2). PrettyLittleThing founder eyes bid for Topshop. Retail Gazette
- MacDonnell, C. (2023, Sep 8). Was Naomi Campbell’s PrettyLittleThing line a fast fashion faux pas? The Guardian
- Weston, S. (2023, Aug 30). Matches cuts headcount. Drapers
- Kleinman, M. (2023, Jan 30). Matchesfashion owner pumps in £60m to keep online retailer in shape. Sky News
- Morgan, A. (2023, Aug 10). Redundancies loom at Farfetch. Retail Gazette
- Sophia, D. (2023, Aug 18). Farfetch shares plunge as weak demand in US, China slams 2023 outlook. Reuters
- SRD (2023, Aug 3). United Kingdom: Top 10 fashion online stores 2022. Statista
- J Sainsbury (2023, Sep 7). Sainsbury’s to create branded fashion destination hubs in at least 50 stores alongside Tu Clothing. Sainsburys.co.uk
- Liao, R. (2023, Oct 30). Shein adds the struggling UK brand Missguided to its fashion empire. TechCrunch
- Davey, J. (2023, Nov 1). UK clothing retailer Next raises profit outlook again. Reuters
- NewStore, Inc. (2023, Sep 28). AllSaints Partners with NewStore to Accelerate Its Digital Transformation Journey. PRNewswire
- Cummings, E. (2023, Oct 23). Sephora announces second UK store opening date. Professional Beauty
- Primark (2023, Oct 10). Primark continues US expansion with entry into North Carolina – closing 2023 with 24 stores across 8 states. PRNewswire
- Wright, G. (2023, Mar 21). New Look reveals new redundancies with 70 head office roles at risk. Retail Gazette
- PR Staff (2022, Sep 6). What next for Net-A-Porter? Power Retail
- Morgan, A. (2023, Mar 30). Farfetch Yoox Net-A-Porter deal gets UK watchdog approval. Retail Gazette
- Featured Image by freestocks
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