How ASOS Could Have Forecasted Their Massive Sales Drop
Over the past few years, both online and direct-to-consumer brands have been disrupting the retail space. But as you may have read, Things aren’t so cheerful for ASOS who have recently lowered their growth expectations, signaling that online retailers may be going through a turbulent phase.
ASOS shares have now fallen by more than 60% so far this year, this comes as a big surprise as until recently there was a clear divide between high street retailers and online-only operators. Bricks-and-mortar stores were reporting poor sales, but online sellers seemed to be doing fine.
It isn’t clear yet if the weakness ASOS is experiencing reflects changing consumer habits. While millennials have embraced online-only and mobile shopping, the younger Gen Z is 23% more likely to visit shopping malls compared to other groups.
Despite a difficult end to the quarter, Asos managed to deliver a 14 percent increase in total sales on a reported basis (13 percent on a constant currency basis), and a 16 percent increase in total orders placed, compared to the same period last year.
That being said, the current backdrop of economic uncertainty across several major markets, together with weakening consumer confidence, which Asos said has led to the weakest growth in online clothing sales in recent years, caused the retailer to lower its expectations for the year.
HOW IT ALL COULD HAVE BEEN PREDICTED
Taking this rapid shift into consideration, ASOS and other online retailers alike could have forecasted this massive drop in online shopping trends, and that’s through the use of Curve’s Sales Prediction and Analysis.
Curve’s predictive technology dissipates the e-commerce fog by providing accurate sales forecasts, support ticket predictions, as well as predictive insights on inventory management that saves e-commerce organizations valuable time and money by enabling them to efficiently plan their inventory, marketing initiatives, and resources.
Situations such as the 60% sales drop could have been predicted by integrating Sales Prediction by Curve, delivers a comprehensive forecast of entire product sales future by day, week and month, as well as optimized product service bundles.
Despite fluctuations in the e-commerce industry, this sector is expected to become the largest retail channel in the world by 2021, according to Euromonitor International, outpacing sales through retail outlets like supermarkets, independent grocers, apparel and footwear retailers, among others. E-commerce will account for 14% of total retail sales in that year.