Asos aims to double its UK manufacturing

London - Not only does Asos aim to create 1,500 new roles over the next three years, the online pure-player also plans to double its UK manufacturing capabilities over the next three to four years.

Following the devaluation of the pound post-Brexit, Chief Executive Officer at Asos, Nick Beighton, has his sights set on opening a number of manufacturing plans across the UK to support its expansion plans. At the moment, Asos currently produces approximately 4 percent of its items at two factories in London. The fashion retailer sources the rest of its in-house label items from factories around the globe, including India, Turkey, China and Eastern Europe, which account for 84 percent of all its production.

However, following the pound decline, domestic production has become more affordable for retailers such as Asos, and would see them offer a more agile supply chain and be more responsive to changes in the market. “There is manufacturing capacity in the U.K. but the skills aren’t quite as available as they once were,” said Beighton to Bloomberg.

Although the fashion retailer does teach employees how to stitch and create garments at an academy in one of its London factories, Beighton is aware of the lack of skills needed to bring more of its production to the UK. However, as the majority of Asos sales are from outside the UK, the pound’s decline has helped the fast-fashion remain ahead of rivals by cutting prices and by moving more of its sourcing to the UK, they will be able to serve their European customers faster.

Photo: Courtesy of Asos