Value Chain Analysis of ASOS

ASOS PLC is a retail cosmetic and fashion British online store company. Deborah Thorpe, Andrew Regan, and Nick Robertson founded the retail fashion brand in 2000. Today, we’ll discuss the value chain analysis of ASOS; and the primary and supporting activities involved in the process of value chain analysis Example Company. They’re inbound and outbound logistics, operations, marketing, and services; infrastructure, HRM, technological development, and procurement of the fashion and cosmetic brand as an application of value chain analysis process.

Substitutes of ASOS

• Matches Fashion
• Amazon
• Zara
• Zalando
• Pretty Little Things
• TopShop
• New Look
• BooHoo
• ASOS

The value chain analysis of ASOS would analyze the primary and supporting activities in the process of value chain analysis application. They’re inbound and outbound logistics, operations, marketing, and services; infrastructure, HRM, technology, and procurement. Here’s ASOS value chain analysis example company as follows;

Value Chain Analysis of ASOS

Let’s discuss the primary and supporting activities involved in the process of value chain analysis of ASOS. It is an application of value chain analysis based on Porter’s model; some of the key elements and components of value chain analysis are as follows;

Primary Activities of ASOS

Let’s discuss the five main elements of primary activities in the value chain analysis of ASOS as follows;

Inbound Logistics of ASOS

I-Manufacturing Factoring

ASOS outsources its production and manufacturing operations and has manufacturing factories in various countries across the world. It helps the company to decrease production and manufacturing costs and gain a competitive edge in the market. However, the supplier manufacturing factories of ASOS are as follows;

• Slovakia, Tunisia, Madagascar, Morocco, Egypt, and Ukraine – all have 1 factory
• Kenya, Macedonia – 2 factories each
• Spain, Thailand – 4 factories each
• Cambodia, Mauritius – 6 factories each
• Albania, Bangladesh – 7 factories each
• Greece – 19 factories
• Portugal – 8 factories
• Vietnam – 22 factories
• Italy – 24 factories
• UK – 24 factories
• Sri Lanka – 30 factories
• Bulgaria – 39 factories
• Romania – 61 factories
• Turkey – 130 factories
• India – 217 factories
• China – 231 factories

II-Supplier Transparency Index

According to the Fashion Transparency Index, ASOS received 7th position ranking and scored 59%. The scoring and ranking show the retail fashion brand is disclosure about its suppliers; and whether their supply chain is complying with the social and environmental standards.

III-Effective Supplier Relationships

ASOS has established very good professional relationships with its manufacturing suppliers worldwide. It helps the company to ensure the timely availability of fashion products and goods for retail.

Outbound Logistics of ASOS

I-Distribution Network

According to an estimate, ASOS sells and offers approximately 850 brands under its portfolio. The retail online fashion brand has a worldwide distribution network and it offers shipment services in over 200 countries across the globe.

• Order fulfillment centers – 4
• Product return centers – 5
• Local language websites – 9

Operations of ASOS

I-Warehousing

ASOS deals with thousands of manufacturing suppliers in various countries across the world. The finished fashion products require storage to make sure the timely delivery of products to the end consumers. However, warehousing is highly challenging for the retail fashion brand because it has to manage warehouses in various locations and process the mass volume of customers’ online orders.

• Some of the other key operations of ASOS are as follows;
• Online payment and clearance
• Order processing and sending it to the nearest warehousing facility
• Coordinating with various distribution channels
• Tracking hundreds and thousands of customer orders daily to ensure smooth delivery
• Collaborating with supplier manufacturing factories to ensure timely availability of products and goods
• Maintaining up-to-date analytical and automation system

Marketing & Sales of ASOS

I-Digital Marketing

ASOS employs various digital marketing channels like Facebook, Instagram YouTube, Twitter X, Snapchat, and others. The retail fashion brand has implemented various digital marketing campaigns to attract the attention of online users; some of them are as follows;

• Sneakers in 60 seconds on YouTube
• Face + Body, How to Style featured series on YouTube
• Hashtag campaign of #AsScreenOnMe
• E-mail marketing

Services of ASOS

I-Return and Refund

ASOS offers a very simple and convenient return and refund service to the customers and it allows the company to improve the customer satisfaction level. As long as the product remains in the new perfect and perfect condition, the retail fashion accepts the return at its return centers and refunds the customer payment.

Supporting Activities of ASOS

Let’s discuss the main elements of supporting activities in the value chain analysis of ASOS as follows;

Infrastructure of ASOS

The online retail fashion brand ASOS has established a very effective and suitable corporate structure and it plays a key role in managing its global operations. The board has the obligation to analyze its policies and make sure that the fashion brand is following its policies and standards. However, the company’s corporate infrastructure comprises of following roles;

• Committee
• Non-Executive Directors
• Executive Directors
• Senior Independent Directors
• Board
• CEO and Chairman

HRM of ASOS

ASOS employed approximately 3300 employees to manage its global operations along with thousands of supplies, vendors, and distributors by its partners. The human resource department plays a key role in building and maintaining a tech-innovative workplace environment. It helps the company to offer equal pay, a diverse workplace environment, women’s emancipation, and equal opportunities for all.

Technological Development of ASOS

ASOS invests a significant amount of capital resources in technological development. It could be in the form of automation technology and analytical tools in the warehouse, software developer teams, data analysts, and others. Tech development helps the company to keep updating its platform relevant to the latest technological industry advancement and achieve efficiency.

Procurement of ASOS

ASOS is very open and transparent about its supplier manufacturing parties. In fact, the retail fashion brand has set clear standards and guidelines for its manufacturers to procure raw materials and supplies sustainably.

Conclusion: ASOS Value Chain Analysis Example Company | Application of Value Chain Analysis Process 

After an in-depth study of the value chain analysis of ASOS; we have realized that ASOS is the world’s leading British online retail fashion brand. If you are learning about the ASOS value chain analysis company example; then you should keep in mind the abovementioned primary and supporting activities involved in the process of value chain analysis. They’re inbound and outbound logistics, operations, marketing, and services; infrastructure, procurement, HRM, and technology as an application of value chain analysis process.