Asos: brands worry over discounts adopted by online retailer

By

Matthieu Guinebault

Published
Oct 2, 2014

The British retailer is facing growing criticism from some of its largest partners—criticism related to significant discounts that the site is placing on their products this holiday season. 

According to the Sunday Telegraph, some of the biggest brands on the UK site are becoming irritated by the discounts, which offer prices that compete with their own retail network and online distribution. Asos is "hurting their brands”, one retail manager was quoted as saying. 

The complaints come at a time when the retailer Next’s new website, Label, is beginning to emerge as an alternative to the British online fashion distribution giant. 

The context is even more complicate for Asos, given that it site saw an drop in its international growth for its financial period ending at the end of August. For its fiscal year, its stock dropped in value by over 60%. The company has indicated a desire to undertake significant investments to stem the declines.