Insights from Asos's Executive VP: Navigating the Brand Transformation Journey

The podcast This Much I Learned doesn't just reflect on past experiences in marketing careers, but also looks ahead to apply those lessons to new challenges.

We are excited to introduce our newest guest, Dan Elton, who serves as the executive vice-president for customer at Asos. He is currently leading a major project to revamp the fortunes of the popular online fashion retailer.

Asos has been a well-established brand for many years, but experienced rapid growth during the Covid-19 pandemic when physical stores were closed, and more customers turned to online shopping. However, profits took a hit shortly after this surge, leading the newly appointed CEO, José Antonio Ramos Calamonte, to attribute the decline to an excessive reliance on promotional activities.

Elton joined the company in March 2023 with the goal of guiding the brand towards a new direction and back to profitability. He explains to Our Website editor-in-chief Russell Parsons that the heavy focus on promotions was driven by the desire to clear excess stock accumulated during the pandemic, rather than being the desired business direction moving forward.

The new strategy aims for a balanced approach between brand building and performance. Elton mentions that Asos's marketing team follows Binet and Field's 60:40 split between long-term and short-term activities, striving to align their practices with this model, although they do not track it daily.

Elton remembers that when he first started at Asos, most of the media budget, around 85%, was focused on Google search and Meta DPA ads at the bottom of the sales funnel. He mentions that there was very little investment in other areas.

According to Elton, this strategy made sense back then because showing up at the final stage of the buying process was enough to secure conversions. He explains that competition was lower and demand was higher. However, he believes that this is no longer the case.

Elton recalls some early research he commissioned that revealed that consumers loved Asos as a brand but, compared to its competitors, they didn’t “hear from us anymore”. It wasn’t showing up in the cultural conversation, he says, it didn’t even have an influencer programme until he joined.

“There was a problem, too, in getting the brand in front of consumers in a more meaningful way," Elton says. “One of the first things we had to do was really rebuild that muscle and start putting Asos back at the forefront of customers’ minds,” he says. “We’re not talking about rocket science; we’re talking about finding ways to rebuild mental availability.”

Back yourself, give yourself a chance, you may not quite get it right first time, but, in general, the universe will reward you for taking that step.

Dan Elton, Asos

The brand is currently working towards achieving a "better balance" between activities at both ends of the funnel. However, Asos faces unique challenges within its category. One major challenge is the need to delegate a significant amount of brand communication to third parties, particularly influencers.

These influencers play a critical role in enhancing the desirability of the brand. However, Asos is unsure about the specific impact they have on the funnel. The brand is uncertain whether these efforts result in long-term effects or short-term effects. Sometimes, it may even lead to both long-term and short-term outcomes.

Returns can be a tricky issue, especially when combined with promotions. Many retailers, including Asos, are grappling with this challenge. Elton acknowledges that it is the most difficult question he is currently facing. He wonders how to navigate a situation where customers love a model that doesn't always result in profitability for the business.

In his view, the solution lies in focusing on maximizing "full-priced" sales, reducing the time it takes to buy products, and purchasing smaller quantities to avoid overcommitting to stock. This approach will allow for fewer promotions and the development of more relevant products, as they are being developed closer to the point of purchase. Elton notes that these strategies have already shown promising results.

Elton's Diverse Retail Experience

Elton has accumulated a wealth of experience in the retail industry outside of Asos. He spent six years at Tesco and three years at Sainsbury’s, where he gained extensive knowledge and skills. Additionally, he had an interesting stint at Google, where he assisted fashion and sports brands in optimizing their use of Google’s media capabilities.

An unfortunate brief period at Made.com, the online furniture retailer that experienced both success and failure during the Covid pandemic, could have affected his confidence. However, he credits his "optimistic" attitude for helping him see the positive aspects of that experience and learn from it.

In the nearly two decades that he has been involved in the industry, he has witnessed significant changes. He finds the "democratisation" of the field to be one of the most fascinating developments. Reflecting on his time at Tesco, Elton mentions that in the past, to be a senior marketing leader, one needed experience in brand management or communications. However, nowadays, individuals with expertise in media, analytics, or customer experience can also hold top marketing positions. He considers this shift to be one of the most beneficial changes in the industry.

In the retail industry, marketing has evolved from simply shaping a brand's outward communications with customers to becoming a crucial part of the customer experience. This shift has led to a better understanding of what influences people's perceptions of a brand and their favorability towards it.

Despite these advancements, there have been some drawbacks. Elton holds a slightly controversial view that the way marketers measure the effectiveness of their strategies has actually worsened over time. He acknowledges the benefits of digital media and its measurability but believes that there is now a sense of laziness in marketing. Relying too heavily on metrics like Google ads or attribution models may not accurately reflect the real world and the true reality of consumer behavior.

He sometimes questions if he's going through an "existential crisis" when considering whether measurement tools have improved compared to what marketers had before. He mentions that in the past, there was talk about half of all marketing being wasted, and although there have been advancements in measurement, some skills may have weakened as a result.

When asked for advice to share with listeners, he urges marketers to seize opportunities that excite them, even if they feel intimidated. He emphasizes the importance of believing in oneself and taking risks, as the universe often rewards those who are willing to take the leap.

Check out the podcast above to hear more insights from Elton about his career journey.

If you want to hear more about topics like mental health and career confidence, be sure to tune into previous episodes of Our Website's This Much I Learned podcast. You can find us on Apple Podcasts, Soundcloud, and Spotify.

Editor's P/S:

The article highlights the challenges faced by Asos, an online fashion retailer, and the strategies implemented by its executive vice-president for customer, Dan Elton, to address them. Elton's experience in the retail industry, particularly his focus on balancing brand building and performance, is commendable. His emphasis on understanding consumer behavior and aligning marketing activities with long-term goals is crucial for the success of Asos.

One interesting aspect discussed in the article is Elton's perspective on the evolution of marketing measurement. While he acknowledges the benefits of digital media and its measurability, he also raises concerns about the potential drawbacks. The reliance on metrics like Google ads and attribution models may not always accurately reflect consumer behavior. This raises important questions about the effectiveness of current marketing measurement practices and the need for a more holistic approach.