What should a growth-oriented company do to fuel more growth?
ASOS engaged the EY Reshaping Results team to help it identify new opportunities to unlock value in an increasingly competitive marketplace.
In early 2020, ASOS was at a crossroads. After close to two decades of stellar performance, the UK online fashion retailer found itself faced with increasing competition, profit and growth headwinds, and challenging operational issues resulting from the simultaneous implementation of two state-of-the-art international distribution centers.
To address these issues, CEO Nick Beighton instituted a comprehensive plan to refocus the business and set it on course for the next stage of its growth. As a pioneer in online fashion, the company had enjoyed first-mover advantage, but market competition had put pressure on margins, creating a need for greater efficiencies and flexibility.
However, as a relatively young, fast-growing company, it had neither the experience nor sufficient internal capacity to deliver value transformation programs.
Beighton had not previously employed outside consultants. “I was always very proud that ASOS had the capability internally and was able to think differently,” he says. “We were always able to turn left when others turned right.”
But, having been introduced to EY teams, he reconsidered that stance. “I realized that it was a great moment for us to re-examine what we do. The EY process and challenge has built on and complemented that internal capability to assist us with the next level of growth.”