A retail expert says ASOS’ crash in share price shows that online retailers cannot rest on past success.
The online fashion giant, which was founded in Hemel Hempstead, issued a profit warning after £1.4 billion was wiped off the firm’s market value.
Dr Gordon Fletcher, a retail expert from the University of Salford Business School, said: “While online retail is a challenger to traditional high street brands this also does not make e-commerce immune from the rising power of the consumer or changeable weather conditions.
“Similarly e-commerce must deliver a strong customer experience that includes rapid, cheap and convenient delivery as well as a free returns policy.
“More importantly, for ASOS, or any e-commerce brand, they should not expect to compete solely on price.”
Dr Fletcher added that there is too many competitors in every sector to enjoy long-term success.
“The fashion industry is not only a fickle and fast-moving sector it is also one not solely driven by price. Perhaps it is time for ASOS to reflect on its origins.
“In 2000, AsSeenOnScreen offered consumers a particular focus and was a distinctive offering in what was an already crowded fashion market - how long ago that initial challenge to fashion and retail now appears.”