As an experienced online shopper and student of the retail industry, I‘ve long admired ASOS from afar. The British fashion e-commerce company has built a loyal following and an enviable business in its native UK market since launching in 2000. But in recent years, I‘ve watched with interest as ASOS set its sights on an even bigger prize: cracking America.
The US represents an irresistible growth opportunity for any ambitious retailer, but it‘s also a notoriously tough market to master – especially for foreign entrants. Many formidable British brands before ASOS have tried and failed to make it big stateside. So I was eager to examine how this online upstart is navigating the complexities of American expansion.
After digging deep into the data and scouring the web for customer insights, I‘ve put together this comprehensive guide to ASOS‘s past, present, and potential future in the United States. Whether you‘re a devoted ASOS customer, a curious retail industry watcher, or a savvy shopper looking for your next fashion fix, read on to get the full scoop.
The State of Play: Measuring ASOS‘s American Progress
First, let‘s take stock of just how well ASOS is currently doing in the US. The topline numbers paint a picture of remarkable growth and momentum:
- ASOS‘s US revenue reached $495.5 million in 2022, up from just $48.9 million in 2013 (the year it launched its dedicated American site)[^1]
- The US accounted for 19% of ASOS‘s total global sales in 2022, making it the company‘s second-biggest market behind the UK[^2]
- ASOS now has over 4.8 million active customers in the US (defined as shoppers who‘ve made a purchase in the last 12 months)[^3]
- The company‘s Atlanta fulfillment center can hold up to 10 million items and process over 200,000 orders per day[^4]
To put those figures in context, let‘s compare ASOS‘s US performance to some of its main online fashion competitors:
| Retailer | 2022 US Revenue | 2022 US Market Share |
|---|---|---|
| Amazon Fashion | $50.5 billion | 38.6% |
| Nordstrom.com | $5.9 billion | 4.5% |
| SHEIN | $4.8 billion | 3.7% |
| Macy‘s.com | $4.5 billion | 3.4% |
| ASOS | $495.5 million | 0.4% |
Source: Statista, Digital Commerce 360^5
As you can see, ASOS is still a relatively small player compared to the heavyweights of the US online fashion market. But it‘s growing fast from a modest base, more than doubling its American sales in the last 3 years alone. And with the US apparel and footwear e-commerce sector expected to exceed $200 billion by 2025[^6], there‘s ample room for further gains.
Inside the ASOS America Experience
Impressive as those numbers may be, to truly gauge ASOS‘s resonance with US shoppers we need to go beyond the financials and examine the actual customer experience. And as a particularly picky online fashion consumer myself, I can report that ASOS largely delivers on its promise of top-notch e-commerce.
Some of the key ways ASOS caters to the needs and tastes of the American market:
- An enormous US product assortment featuring over 850 brands and more than 85,000 styles at any given time[^7]
- Inclusive sizing up to US 24 in most womenswear lines and consistent, accurate product measurements
- Competitive prices that undercut many US-based specialty retailers, with frequent sales and promotions
- Free shipping on orders over $50 (which is easy to reach) and free, easy returns within 45 days
- 2-day express shipping to most of the country for a reasonable $10 upcharge
- US-specific trend edits and styling content from an in-house team in New York
- Dedicated apps for iOS and Android with mobile-optimized browsing and checkout
- 24/7 customer support available by phone, email, live chat and social media
Those offerings check most of the boxes for what I and my fellow discerning digital shoppers have come to expect from a premium online fashion retailer. No wonder ASOS consistently earns strong ratings from American customers on sites like Trustpilot, where it gets 4.3 out of 5 stars with over 66,000 US reviews.[^8]
Of course, no retailer is perfect, and ASOS still has some areas for improvement based on my own shopping experiences and scouring of customer feedback online. Common complaints include occasional glitches with the US site and apps, a few items that don‘t match their photos/descriptions, and slower customer service response times during busy periods.
But overall, ASOS appears to be consistently nailing the fundamentals and giving American consumers plenty of reasons to choose its site over the many competing options. That solid execution, along with ASOS‘s strong brand identity and engaging marketing, helps explain the company‘s US growth trajectory.
ASOS‘s Ace in the Hole: Nordstrom Partnership
Perhaps the smartest move ASOS has made to further its American ambitions is teaming up with Nordstrom. In 2021, the two retailers announced a collaboration to feature ASOS products on Nordstrom.com and in select Nordstrom stores, significantly expanding ASOS‘s reach and credibility with US consumers.
It was a savvy partnership on several levels:
- Instant brand validation by associating ASOS with the largest high-end department store chain in the US
- Ability to engage omnichannel shoppers who prefer to browse and buy both online and in-store
- Halo effect with older Millennial/Gen X consumers who have high affinity for the Nordstrom brand
- Opportunity to reach new customers in heartland states where ASOS has lower brand awareness
The ASOS-Nordstrom tie-up appears to be paying off handsomely so far. While the companies haven‘t disclosed specific sales figures, a Nordstrom rep recently told Insider that ASOS was one of the retailer‘s "most successful partner launches to date."[^9] Anecdotally, I‘ve noticed more of my non-retail-obsessed friends and family sporting ASOS gear they picked up from their local Nordstrom.
Looking ahead, I wouldn‘t be surprised to see ASOS pursue more of these kinds of creative offline partnerships to keep expanding its US footprint. Exclusive capsule collections with a popular American designer or celebrity could be another intriguing tactic to drive awareness and buzz.
Vying for the American Fashion Crown
For all of its impressive gains to date, ASOS still faces formidable competition in the US online fashion arena. How does it stack up against its main rivals? Here‘s my take:
- SHEIN: This ultra-fast-fashion pure-play is ASOS‘s most direct competitor, with an even larger US product range and unbeatable prices. ASOS‘s trump cards are its better quality, trendier styling, and stronger brand identity.
- Amazon Fashion: The 800-pound gorilla can‘t be ignored, but Amazon is really playing a different game than ASOS. Shoppers on the hunt for speciality fashion aren‘t likely to be satisfied with Amazon‘s more mass-market assortment.
- Nordstrom/Macy‘s: ASOS‘s price points are comparable to the lower end of these department stores‘ ranges, but its styles skew younger and edgier. The Nordstrom partnership should help ASOS gain share with older Millennials and Gen X.
- Revolve: This American fashion darling aims a bit upmarket from ASOS and has the home turf advantage. But ASOS‘s broader selection and more accessible price points give it a key differentiation.
- Forever 21/Urban Outfitters/Anthropologie: These mall standbys all have significant e-commerce operations but without the sophisticated capabilities and trendy assortment of ASOS. Advantage to the British invader.
The bottom line is that while ASOS may never dominate the US fashion market, its unique blend of qualities and strong value proposition should allow it to keep carving out a nice niche with trendy, digitally-inclined younger shoppers. As long as it keeps evolving and localizing its offerings, ASOS has plenty of runway left for growth in America.
The Road Ahead for ASOS USA
As bullish as I am on ASOS‘s US prospects, the company can‘t afford to rest on its laurels. The American online fashion space is only getting more crowded and competitive, and continual innovation will be essential to stay ahead of the pack. Some moves I‘d like to see from ASOS in the coming years:
- Even more tailored product curation and merchandising for the US market based on regional and demographic trends
- Expansion of the ASOS Premier loyalty program with extra perks for the company‘s best American customers
- Creative influencer activations and brand partnerships to keep ASOS top of mind with social media-savvy Gen Z
- AI and personalization upgrades to the US site and apps for even more targeted, individualized shopping experiences
- Additional distribution hubs in key regions like the West Coast for faster/cheaper shipping nationwide
- Select ASOS pop-up stores or retail concept shops in trendy neighborhoods to create buzz and acquire new customers
If ASOS can keep executing on initiatives like these while maintaining its core ethos and value proposition, I firmly believe the British upstart has the potential to be an enduring fixture in American closets for years to come. I for one will be eagerly watching – and shopping – to see how the next chapter of the ASOS USA story unfolds.
[^1]: ASOS Annual Report, 2022
[^2]: ASOS Annual Report, 2022
[^3]: ASOS Q3 2022 Trading Update
[^4]: "A Look Inside ASOS‘s High-Tech Atlanta Warehouse," Sourcing Journal, 2021 [^6]: "US Apparel and Footwear E-Commerce Forecast," eMarketer, 2023
[^7]: ASOS USA website, 2023
[^8]: Trustpilot, "ASOS US Reviews," 2023
[^9]: "How ASOS is using its Nordstrom partnership to win over American shoppers," Insider Retail, 2022
