I have seen that a lot of people have concerns related to ASOS. As a famous online fashion retailer store, this marketplace has gained a lot of attention from people around the globe. But, a lot of them have deep concerns related to this brand.
One of these concerns is related to ASOS pricing. A lot of people ask “Is ASOS a Cheap Brand?”
The short answer is:
ASOS’s in-house brands are cheap. But, overall in this marketplace, you will find various price ranges. A lot of items are affordable but a lot of them have high price ranges. Reputable brands’ products have high prices, but various small and ASOS brands have cheap prices.
You must be wondering- What Makes ASOS so Cheap? I’ve explained all the reasons below as well.
|Founders||Nick Robertson and Quentin Griffiths|
|Headquarters||London, England, UK|
|Industry||Fashion & Beauty Retail|
|Products||Clothing, Shoes, Accessories, Beauty Products|
|Target Market||Young adults (primarily aged 18–34)|
|Business Model||E-commerce, Direct to Consumer|
|Revenue||Around £3.26 billion|
|Private Labels||ASOS Design, ASOS Edition, ASOS 4505, etc.|
|Sustainability||Carbon-neutral, committed to ethical fashion|
|Technology||Use of AI for customer experience, AR for ‘Virtual Fitting Room’|
|Marketplace||Hosts over 850 third-party brands alongside its own labels|
|Customer Service||Online chat, email support, social media engagement|
|Mobile App||Available on iOS and Android platforms|
|Loyalty Program||ASOS Premier Delivery service|
|Collaborations||Frequently collaborates with designers and celebrities|
|Social Impact||Various initiatives, including the ASOS Foundation|
To know the answer to this question, you must know some facts about ASOS.
It is a marketplace where you can find 900-plus brands. These brands vary from reputable designers to small designers and vintage collectors.
Due to this variation, you will find different products at different prices. These prices vary from expensive to cheapest.
Mostly, the products of reputable brands have high prices but the merchandise of small brands and ASOS in-brands have cheap prices. You can even find some products from reputable brands at an affordable rate in this store.
Now, I know a lot of you want to know why ASOS in-house brands are cheap. And, how can they provide products from reputable designers at affordable rates? So, I am going to discuss the detailed answer to these questions now.
There are ten different reasons why ASOS brands are cheap, and they have affordable prices on some products of large brands. These ten reasons are….
ASOS is only an online store that doesn’t have any physical place to display its products.
Do you know what it means?
Well, it means they don’t have to pay rent, have to pay hefty electric bills and give salaries to any store’s team.
Though they started their physical store in Nordstrom in 2022, they are limited, and a lot of people are still buying online.
Their online store has saved them from all the store’s expenses, and they can easily display a fairly large amount of products on their website.
Due to this, they can make all of their products affordable.
This store buys products in bulk and then stores them in their storage houses. They have collaborated with a lot of reputable brands, so they can buy their products too at wholesale prices.
As you know that it is a retail store, so manufacturers and brands sell their products in bulk at affordable rates to it. In turn, they also sell their products at cheap prices to their customers.
Another major reason for cheap prices is that their factories are in developing countries.
Do you know what it means?
Well, it means that the manufacturing and labor prices are cheaper. In these countries, they can get material, labor, and manufacturing of products at affordable rates as compared to the UK and US.
Now, you may want to know in which countries their factories are. So, I am going to list them here:
- Middle East
Though their factories are in the UK and the US too, the majority of their factories are in these developing countries. So, most of their products are cheap.
A lot of times, I have heard customers saying that ASOS’ in-house brand quality is cheap. According to Extrabux, the quality of ASOS clothes varies according to their prices. Products with higher prices have good quality, but cheap prices have low quality. They use cheap materials in these products, that’s why they keep the prices low.
So, I will suggest that you think twice while buying cheap products from this store. Moreover, you should check reviews of products before buying.
You will find vintage boutiques in the ASOS marketplace too. In their marketplace, they allow independent brands and designers to design their products, and sell them to the world. But, they also allow vintage collectors to open their boutiques in their marketplace.
On their website, you will find a whole section of vintage collections. This collection contains every type of product, mainly dresses. These collections have low prices which make ASOS collectively an affordable brand.
I have seen different types of discount cards and vouchers on ASOS which makes it an affordable brand. The most exciting ones are Student Discount Cards and Vouchers.
In it, students can get a 10 percent discount on each purchase. They can activate it when they are 16 and will get it till they graduate. Except for it, they will also get a student gift choice card.
They also provide gift vouchers and cards to their customers. Moreover, they also provide free shipping to different areas of the world. They have ASOS Premier which members can enjoy fast and free delivery throughout the year after spending a little money.
These all aspects also affect the prices of each product you buy in this store.
On their website, you will find dedicated sections for sales and discounted clothes. These sales and discounts also make ASOS products cost-effective.
They provide 70 to 80 percent of discounts on different products which makes them cheaper than others. These sales and discounts also make products of reputable brands affordable.
So, whenever I want some cheap products, I visit their sales section. You can also do the same.
What does a year-round business model mean?
ASOS has a large collection of products from 900 plus brands. You will find cosmetics, clothes, shoes, jewelry, and accessories of every type in this store. These products are inclusive which means that they are genderless, and target people from all around the globe.
It means that they have a wide range of target audience which buy from them the whole year. Their products are for every season and every person.
So, they have cash flow throughout the year which helps them in sustaining themselves. It enables them to keep the products at low prices and keep giving discounts and sales on different items.
As they have enough cash flow, they keep their benefit low which makes their items affordable for the audience.
Do you know it takes hefty fees for animal testing? This testing makes cosmetics of other products expensive. But, ASOS claims that their cosmetics are vegan and cruelty-free. So, there is no need for animal testing on their products. This aspect also makes their cosmetics cheaper than other brands.
I have observed that targeting a global audience also helps them in keeping their products a bit affordable. They get money from clients in different currencies around the world, and their products are also produced in different currencies. The currency differences enable them to keep their products cheaper for a lot of audiences.
Moreover, they have storage houses, factories, and return centers in different parts of the world. For example, if someone from Canada places an order, they will send the product from Atlanta’s storage house.
Different locations of storage houses and factories enable them to cut down a lot of expenses and keep their products cheaper.
In short, a lot of ASOS products are affordable for a large audience. There are expensive and cheap products in their store at a fair ratio.
I have discussed different reasons in this article which told you how this store manages to keep the products cheaper. I hope it has answered your concerns about ASOS pricing.