Business of Fashion: ASOS is shutting down its division in China
British online retailer, ASOS, a fashion and beauty store offering merchandising to young adults is officially closing its operations in China. And at a hefty cost of $10 million, little less than three years after its launch. The division spent nearly 9 million in its initial launch back in 2013 with 3 million over budget to push out the project.
It’s division in Asia forfeited nearly $4 million of e-commerce loss this year alone. Needless to say, ASOS is focusing its reins in the Europe, U.K., and U.S. markets now. ASOS was facing heavy obstacles against the Chinese company, Alibaba, another online fashion retailer who dominated the Chinese market.
Nick Beighton, the current chief executive of ASOS stated, “We’ll continue to do business in China. We are simply serving our growing customer base there in a more efficient, less costly manner.”
Let’s not forget, it was just last September where Nick Robertson the chief executive officer stepped down after 15 years with the company. And he co-founded the brand. He held a stake in the company worth more than 200 million pounds.
“We are fortunate to have such an able successor for the CEO role,” Chairman Brian McBride said in the statement.