The stunning growth of global e-retailer Asos appears to be stalling in Australia, with the lower dollar and more competitive local online offerings prompting the company to reassess its marketing efforts in the year ahead.
Asos posted a decrease in its international sales growth to 19% for the first quarter, down from 26% in the previous corresponding period.
Australia is Asos’ third biggest market outside of the UK and the US. It accounts for 40% of the company’s “rest of the world” category outside the UK and the US. Until recently it has been one of Asos’ biggest growth markets, reports The Sydney Morning Herald.
But a weakened Australian dollar against the pound at the end of 2013 saw sales became increasingly unaffordable for local consumers, with prices up to 13-15% more expensive due to the exchange rate.
Chief Executive Officer Nick Robertson told Retail Week, Australia was “not a great place to be” but has plans to make tactical promotions in Australia to help rejuvenate sales growth.
The slowdown in Asos sales is good news for local retailers losing customers to overseas e-retailers and the $1000 GST-free threshold applied to internationally bought goods brought into the country via the mail.
The world’s fastest growing online fashion retailer, founded in 2000, launched an Australian site in 2011 and set up its first non-UK office in Sydney in 2012.
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