ASOS Marketplace launched in 2010 and since then it has become the leading online platform for independent brands and vintage boutiques selling online.
ASOS profits fall by 68%, attributing it to the lost focus on human engagement
ASOS have reportedly experienced a fall in profit of 68% after suffering a range of warehouse problems.
Over the last year, the marketplace have installed more robots in their European warehouses and expanded their facilities in the US – in spite of this expansion, the leading marketplace stated that they had not been well-prepared for the additional complexities that the expansion could cause.
As many shoppers now prioritise convenience when they shop, retailers have needed to adapt. However, the recent announcement from the marketplace shows that perhaps the sector is not ready to be wholly digitalised. How can marketplaces allow technology and human interaction to co-exist and how can this be used to revitalise the shopping experience?
“There has been a lot of discussion around the future of the retail industry as well as that of bricks and mortar stores, and the recent announcement about Asos shows that the whole sector is affected by falling sales. It is important that retailers learn from the mistakes that other major retailers did not learn themselves and retailers should find ways to modernise their offerings. Implementing technology does not have to be a negative thing – it has the ability to make the shopping experience more efficient and it can also be used to hyper-personalised the shopping experience.
Incorporating technology, such as in-app payments, stock checkers and personalised offers, to make the high street offering as convenient as possible will help to resurrect the high street using 21st-century solutions and has the potential to encourage more footfall into stores up and down the high street. Retailers would do well to take this on board and amalgamating retail tech and human interaction is the best way forward and retailers have a duty to find a balance in their responsibilities to their employees and consumers, therefore retail should combine technology and human interaction to help their communities thrive.”
-Will Broome, chief executive officer and founder, Ubamarket.