Data and transparency: Asos roadmap to sustainable growth

In a period of significant recalibration for the pure-play e-commerce sector, Asos is moving beyond its turnaround phase by implementing a ‘new commercial logic’ designed to decouple growth from heavy discounting. Speaking at the World Retail Congress in Berlin, José Antonio Ramos Calamonte, chief executive officer of Asos, detailed how the British fashion giant is leveraging AI-driven personalisation and a restructured loyalty proposition to secure long-term profitability.

Moving beyond promotional trap

Since taking the helm in 2022, Ramos Calamonte has overseen a rigorous transformation aimed at addressing the ‘rollercoaster’ effects of the post-pandemic era. The central challenge has been moving away from a business model that relied heavily on excess stock and performance marketing to drive volume.

"We’re coming from a moment of a lot of growth, but not necessarily sustainable growth that generates profit," Ramos Calamonte observed. The new strategy focuses on "product authority" – bringing the right inventory to market at the right time to encourage full-price sell-through. He cited a recent collaboration with Adidas that sold out in days with zero discounts as a template for future expansion. "This is not about finding silver bullets or magical solutions... It’s about continuing our journey in this direction."

Redefining loyalty through experience

A cornerstone of this transition is ‘ASOS World,’ a loyalty programme that notably eschews the industry-standard points-for-discounts model. Despite initial internal skepticism, the programme has seen high engagement, with 3.5 million members in the UK and a 20 per cent uptake in recently launched markets like Germany and the US.

The programme focuses on early access to exclusive collections and real-life experiences. According to Ramos Calamonte, top-tier members have increased their consumption by between 9 and 20 percent.

"If our story to consumers is about the best product and experience, but then we give a 20 percent discount, it is not integrated in that experience. We didn’t go down the path of traditional discount mechanics... because this is not what they want."

AI and ultra-personalisation

For a digital-first retailer, AI integration is no longer optional but foundational. Asos reported that 15 percent of its code is now written by AI, while 20 percent of buying decisions and 50 percent of customer care interactions are managed through automated systems.

However, the strategic focus for 2026 and beyond is ‘ultra-personalisation.’ The goal is to create a unique storefront for every visitor, using AI to suggest outfits based on previous purchases—for example, pairing a newly purchased dress with the correct accessories for a specific occasion. This level of relevance is seen as the primary driver for capturing the remaining 70 percent of the retail market that still sits offline in major European territories.

Tackling returns through consumer ownership

Returns remain a persistent friction point for European fashion retail, particularly under the scrutiny of evolving EU sustainability expectations. Rather than relying solely on logistics optimisations, ASOS has adopted a policy of ‘radical transparency’ regarding consumer behaviour.

The retailer now provides customers with their individual return rates. "One of the best things we have done is give the power back to the consumer," said Ramos. "We say, “Mrs. Consumer, this is your real return rate. Now you see it.” That transparency has been the most powerful tool because they now feel responsible for their actions."

Key Takeaways for Executives:

Operational shift:

ASOS is transitioning from a high-stock, promotion-led model to a disciplined commercial strategy focused on full-price sales and product authority.

Non-transactional loyalty:

The ‘ASOS World’ programme prioritises exclusive access and experiences over traditional discount mechanics, resulting in increased consumption among top-tier members without sacrificing margin.

Radical transparency:

Sharing individual return data with customers has proven more effective at reducing return rates than punitive measures, by giving consumers ownership of their shopping behaviour.

This article was written using artificial intelligence.