Recent updates from major fashion retailers shed light on their strategies in a fragmented market.
- Asos is focusing on a ‘test-and-react’ model to handle inventory and trends.
- Primark is thriving due to low prices and international expansion.
- M&S leverages core categories and collaborations for growth.
- Zalando sees success through premiumisation and logistics innovation.
In the face of ongoing market challenges, several key fashion retailers have provided insights into their strategic approaches. These strategies reveal a diverse set of methods employed to adapt to changing consumer behaviours and economic pressures.
Asos has faced considerable difficulties, with losses widening to £379m for the year ending September. The company is adopting a ‘test-and-react’ approach, aiming to stay relevant to younger consumers and reducing excess inventory. CEO José Antonio Ramos Calamonte emphasises the expansion of this model from 10% to 20% of own-brand sales.
Primark benefits from its robust value proposition, with a 51% increase in profits to £1.1bn. The retailer’s expansion into international markets and the roll-out of click-and-collect services are driving sustainable growth. Despite challenges in the UK, overseas successes bolster its global presence.
M&S reported a 4.7% rise in clothing and home sales, maintaining leadership in key categories like jeans and bras. Their strategy includes utilising high-profile collaborations, such as with Sienna Miller and Bella Freud, to attract a younger demographic.
Zalando continues to excel by focusing on premium offerings and strengthening logistics capabilities. The company’s efforts have resulted in increased average order values and improved profit margins. This approach positions Zalando favourably in a competitive market.
Retailers adopt diverse strategies to tackle the multifaceted challenges of today’s fashion market.