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.