As per the reports of a leading daily, online clothing retailer ASOS has decided to close its operations in the Chinese market. The company will shut its China-based Distribution Centre, Shanghai Office and local website after reporting continuous low profit margins since its inception in the country three years back.
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“We’ve just not made the headway that we had hoped for. The Chinese market is unlike any other we operate in.Getting eyeballs on our products has proved very difficult,” Nick Beighton, CEO of the company told Bloomberg, the premier source for global business and financial information.
Closing of ASOS is another example of the ongoing tough market conditions in the Chinese market which is forcing apparel retailers to either move out or shut their operations in the country. Although, a Shanghai-based Internet consultant IResearch claims that China’s e-commerce business is projected to grow by 20 per cent to US $ 557 billion next year, but ASOS’ move shows that the retailer is up for better opportunities and stable market conditions.
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The online fashion player posted a loss of US $ 7.3 million from its China business in its latest financial report. The company is now mulling over bringing investments into its core spaces of European and American markets, to once again attain positive numbers in its balance sheet in the coming years.
