Introduction

This portfolio will look at ASOS and Net-A-Porter, two of the most successful online fashion retailers, and will highlight the diverse ways in which the marketing mix is utilised and how they use the marketing mix to target different markets. This will include the marketing mix variables and the use of digital marketing and the growth of globalisation.

The fashion industry is one of the most thriving and profitable industries in the UK and in the world. The increase of globalisation has led to more of the population having an awareness and interest in fashion. Today, there are many designer brands in the UK including Burberry and Vivienne Westwood. (British Fashion Council, 2016)

UK is one of the pioneers in the fashion industry, and the nation is accredited with numerous innovations in the industry segment. A research study conducted on the fashion industry in the UK states that consumer spending on fashion apparels in UK saw a growth rate of 6.5% in 2009 with sales figures reaching £2.5 billion. According to a report carried out by Mintel in 2015, £12.4 billion was spent on fashion online in the UK, up 16% from £10.7 billion in 2014 (London Fashion Week, 2016).

ASOS logo (Belding, 2016)

ASOS was launched in 2000 and was one of the first online retailers, selling high street brands such as River Island, Nike and New Look. Their online store offers over 60,000 branded and own label products across womenswear and menswear. The company was founded in 2000 and is now valued at £2.9 billion pounds, with annual sales of £1.15 billion.  (Strijbos, 2016)

"More than just an online retailer, we want to be as synonymous to fashion for twenty-somethings as Google is to search and Facebook is to social networking."  

- (ASOS, 2016b)

Their target market, according to the ASOS website is the '20-something fashion lover: an avid consumer and communicator who is inspired by friends, celebrities and the media.'(ASOS, 2016a) This generation has instant access to the internet, phones and TV, and has grown up in a society which communicates with friends and family online and posting updates of their lives to social media. This makes digital marketing the best way for ASOS to communicate and build relationships with their customers.

Net-A-Porter logo (Ikure, 2016)

Launched in 2010, Net-A-Porter is a world leader in the luxury fashion online fashion industry selling luxury brands including Chloé, Christian Louboutin and Stella McCartney. Net-A-Porter prides itself on their excellent customer service and describe their values as 'not just a tick in the box exercise'. (Net-A-Porter, 2016) 

"At the heart of our business, our core values stand for everything we do.

• Be the best
• Lead not follow
• Exceed expectations
• Smart and stylish
• Service starts with yourself"   

• - (Net-A-Porter, 2016) 

The online market for luxury products has increased, with research showing 50% of shoppers have bought designer fashion online. Over 30% of designer shoppers buy from third party websites like Net-A-Porter, where less than 25% of designer shoppers purchase from official brand websites.(Mintel, 2015)
According to a report carried out by Mintel 2015, men aged 16-24 and women aged 25-44 are the most likely to buy from the designer’s website. 
The Net-A-Porter website receives 85 million page views a month and is on 9 social media platforms to interact with customers.

Although the majority of customers are in the USA (26%) and the UK (17%) (Suarez, 2014), Net-A-Porter also delivers their customers in more than 170 countries including Germany, France, Australia and Singapore.

Their main target market is women in their 30’s, with an average annual income of £170,000. 6 million women read, browse and shop every month with Net-A-Porter. (Suarez, 2014)

Net-A-Porter also produce their own digital magazines, The Edit and PORTER. which includes world-class fashion shoots and celebrity interviews. The magazine also comes in four different languages; English, French, German and Mandarin. (Suarez, 2014)

It is clear to see that ASOS and Net-A-Porter have different target markets and different branding strategies. This blog will compare both companies in more detail to see how their marketing strategies help attract the right customers.

References

ASOS (2016a) Our ambition & strategy. Available at: http://www.asosplc.com/our-ambition-and-strategy.aspx (Accessed: 21 November 2016).

ASOS (2016b) How we do it. Available at: http://www.asosplc.com/how-we-do-it.aspx (Accessed: 26 October 2016).

Belding, S. (2016) Amazing customer service demonstration from ASOS. Available at: http://customerthink.com/amazing-customer-service-demonstration-from-asos/ (Accessed: 16 November 2016).

British Fashion Council (2016) News. Available at: http://www.britishfashioncouncil.co.uk/News (Accessed: 15 November 2016).

Ikure (2016) Net-A-Porter Portfolio Page. Available at: http://www.ikure.co.uk/portfolio_page/net-a-porter/ (Accessed: 16 November 2016).

London Fashion Week (2016) The British fashion industry & London fashion week facts & figures. Available at: http://www.londonfashionweek.co.uk/news_detail.aspx?ID=779 (Accessed: 17 October 2016).

Net-A-Porter (2016) Careers in fashion. Available at: https://www.net-a-porter.com/Content/careers/culture (Accessed: 21 November 2016).

Strijbos, B. (2016) UK fashion industry statistics. Available at: https://fashionunited.uk/uk-fashion-industry-statistics (Accessed: 17 October 2016).

Suarez, F. (2014) PowerPoint presentation. Available at: https://www.net-a-porter.com/alfresco/nap/webAssets/webPage/advertise-with-us/desktop/common/NAP_Media_Kit.pdf (Accessed: 31 October 2016).