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Asos cooks up a website to suit Chinese tastes

Asos is planning to adapt its business model for the Chinese market, with a local distribution centre and payment methods that cater to the local customer.

The etailer is on track to launch its Chinese site in October – having brought forward its Russia launch five months to this week – and has completed an in-depth review of the market.

The operating model will differ from Asos’s other international operations, with the service closely tailored to the local consumer and a domestic team recruited, rather than the site being  operated from the UK as it will be for Russia.

The Asos China website will have an edit of around 10% of the etailer’s full product range. The edited offering will include both the Asos own brand and third-party labels, and will expand as the Chinese business grows.

The site will have a different look to Asos’s other international sites, although no further details have been revealed.

Asos expects the net operating set-up costs to be between £4m and £6m a year until August 2015.

This week, Asos said revenues rose 33% to £359.7m in the six months to February 28 as profit before tax and exceptional items climbed 11% to £25.7m.

Retail sales grew 34% to £352.3m. International retail sales continued to rise, jumping 39% to £214.7m, and now account for 61% of total retail sales.

The company has six million active customers worldwide. Russia is already its fifth-biggest market outside the UK.

Readers' comments (1)

  • It will be interesting to see if they go it alone or integrate into the Tmall.com ecosystem. Catwalk 88 tried to open up independently and soon found that the world outside Tmall is not trusted by the Chinese consumer and soon moved the operation to be Tmall only.

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