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Just to put into perspective the Omni Channel market potential they are launching into.
India has the largest number of millenials and Gen Z's Globally.
The age group from 18 to 35 years old totals 600 million.
Https://retailtimes.co.uk/asos-partnership-with-reliance-retail-will-help-tap-lucrative-indian-fashion-market-says-globaldata/
A bit more info in the above... Including
ASOS’ deal with Reliance includes the introduction of exclusive brand stores, which will be its first foray into permanent standalone locations. This is a sensible move given India’s online market is less developed than in Western countries, only accounting for 24.0% of apparel sales in 2023, however the digital channel is growing fast, so it is wise that the deal also includes ecommerce platforms. Providing Indian shoppers with the opportunity to see and try-on items in person will also give them greater confidence while they become more familiar with the ASOS brands.
I don't think it needed to be RNSd. It has huge potential and it's great news to be tapping into a huge growing market but it's early days. it'll show up on future results/trading updates once back to growth to show revenue by geographic location.
Also NEXT didn't RNS last month when they did the exact same thing...
Thursday (correction)
16-May-24 16:35:06 372.40 131,980 Buy* 491.49k UT
From 365.80 Up 6.60 (1.80%) - High 380.00 Low 364.40
Shorts 6.25% less 0.16% (LMR) = 6.09%
Remember this only relates to ASOS's own brands, which obviously have higher margins and the potential I assume for more dynamic production logistics.
Good news all round - including the short reduction which is inevitable due to the technicals which are currently screaming buy.
DYOR/GLA
Thursday
16-May-24 16:35:06 372.40 131,980 Buy* 491.49k UT
From 365.80 Up 6.60 (1.80%) - High 380.00 Low 364.40
Shorts 6.25% less 0.16% (LMR) = 6.25%
Seems the company felt a note on its own website would be enough:
https://www.asosplc.com/news/reliance-retail-and-asos-partner-bring-asos-own-brands-india/
@Boris I was thing exactly the same thing.
We aren't exactly the most positively reported company on the LSE either.
Nice spot I missed that
Shorts are down, slightly
I personally think the market has missed this news earlier today, had there have been an RNS I would have expected a stronger uptick, this will move very fast, given the ever reducing free float. Oh and the shorts need to buy back 6% of the stock. Hopefully this will be the start of the SP improving and strengthening balance sheet.
GLA
Why does that matter? Its going up wether its 1 year or 5 . You were saying its going bust a moment ago, don't worry its not :)
How many years will that take
What are you scared off Robo?
What is it that makes you panicked every so often?
Don't worry mate, we're going to pick off the various resistance levels one by one and glide towards 1000 ;)
Thanks for the analysis Black
Roberto there 1.4b living in India. I hope that answers your question and you can now stop asking pointless questions.
Does any of you have an idea of the scale, expected impact on revenues / profit, partnership arrangements etc? What about local competition?
Absolutely not ;) CWWX
Just posting a link to a good site ;)
Agree, growth in broker accounts in India for example also have been big in India. From 25 M in 2015 to 150 now in seven years. Says enough about spending power and growth GDP. Many tailwinds there now. Good newsfor Asos, SP will react in due course when proven that volumes are indeed impacted and what this adds bottom line.
Idandy…. What I do know is the job markets in India have been on fire for years. This has caused great competition which means more money in the back pocket for the working folk.
People in the IT profession are not working for £5k a year…. On average support workers are taking in £15-£30k a year. My figures are in sterling so that’s a lot of money when converting to the local currency / cost of living.
If ASOS grows in this space then we will be handsomely looked after on the SP.
I must admit I was looking forward to this news dropping and had hoped it would have a more positive impact on the sp.
I wonder does the market just see it as an opportunity but will wait to see if it actually brings any profitable result.
Pricing may be an issue in India and as we all know you dont get rich selling £5 notes for a pound.
Here's hoping it works out.
Good afternoon all, what excellent news I am greeted with.The long awaited Indian deal :)
Looking at the Technicals, I'm thinking now we have sailed past 360 and have now breached the decending wedge, the previous highs are the logical next milestones.
Pass these and I honestly think you will see a massive short reduction and alot of folk buying in.
https://ibb.co/TgxnDRW
Ambanis have struck a deal which is fab news to Asos. Indians love to look great and fashionable for any occasion.
Tighten your belts long term holders!
Assume you didnt read ANY of the previous posts then Tom, ha ha ha
ASOS partners with Reliance Retail to bring own brands to India
https://www.theindustry.fashion/asos-partners-with-reliance-retail-to-bring-own-brands-to-india/