A note from our team about COVID-19

ASOS Seeks Supplier Discount, In A Bid To Cut Costs

by: Well Made Clothes Staff | 1 year ago | News

Image source.

While some fast fashion retailers are only getting faster, online giant ASOS appears to be struggling. And, in typical fashion, the retailer is trying to cut corners by seeking a discount from its suppliers. According to Forbes, ASOS has just asked suppliers for a 3% discount on all invoices for stock received from 1st September, in order to "fuel joint growth".

This comes as the company struggles to repair its finances after issuing two profit warnings. In a letter to its suppliers, ASOS claimed that it needed a discount in order to cope with the cost of launching warehouses in the US and Germany – warehouses that it described as “transformational investments” for the business.

“We have recently reviewed the current status of our supplier arrangements, also taking into account the significant investments we have made over the last few years and will continue to make, to lay the foundations for future growth,” the letter said. “Our future growth aspirations not only benefit us but also benefit you, our valued partner. We hope you will understand this necessary change and on behalf of ASOS we would like to thank you for your continued support.”

However, this letter smacks of typical fast fashion antics – whereby big retailers squeeze suppliers to keep their costs down. And what this results in is a vicious cycle of oppression and a skewed perception around the true cost of fashion. So, here’s hoping that this will instead be a lesson for retailers like ASOS to reject discount culture and slow the system down – before it is too late.

This article reflects these values click to shop the value

This article reflects these values

Tap value for more information

Shop related categories