Just in time for its 21st birthday, British clothing group Asos Plc has published its first report showing the company’s economic and social impact. Asos relies on transparency and seems to have grown up with it.
The company has had Oxford Economics research seven areas: its direct and wider impact on the UK economy, its impact locally and in the global economy, its contribution to the UK’s skills and knowledge base, and the Asos marketplace as a growth driver for small and medium-sized businesses and its advances in corporate responsibility.
Asos examines seven areas of influence
“Asos is a global leader in online fashion. More than 90,000 products from Asos’ own and third-party collections can be bought in almost every country in the world, making an important economic and social contribution in the UK and globally,” reads the report.
“This report examines the jobs, GDP and payments to governments supported by Asos in the year ended August 31, 2020 (2019-20) by analyzing Asos’ own operations, its expenditures to suppliers, its wage payments to employees and its social investment programs,” it said.
Tax revenue worth almost a billion euros
Due to the pandemic, the British economy suffered its sharpest decline in gross domestic product (GDP) in more than three centuries in the past financial year; However, Asos’ contribution to the UK economy increased by 2.3 percent compared to 2018-19 to £1.8 billion, according to the clothing giant. This was linked to 31,660 jobs and generated £825 million (around €987 million) in tax revenue. According to Asos, this is enough to fund the full-time salaries of 20,100 secondary school teachers, 23,700 nurses or 39,600 nursing staff.
31,666 direct and indirect jobs
In total, Asos contributed 31,660 jobs to its national BIS footprint: through 3,650 direct and 16,430 indirect jobs, i.e. those in its own operations and in the wider supply chain, which amounted to £399m (around €477m) and £220m ( 263 million euros) in tax payments. Asos also included 11,580 jobs and £205m (around €245m) created by spending by its own employees and those in the supply chain on retail, entertainment and other spending.
Locally, Asos supports jobs at its London headquarters and offices in Leavesden, as well as logistic centers and warehouses in Barnsley, Selby and Doncaster. In fact, Asos and its partners are the largest private employer in the greater Barnsley area and have opened a new department store in Lichfield that is expected to create 2,000 jobs over the next three years.
In addition, around a quarter of Asos’ suppliers come from economically disadvantaged areas such as Barnsley, Bradford, Manchester, Leicester and Tower Hamlets. With its marketplace, the group supports both domestic and around 1,400 global fashion suppliers.
Asos relies on training
As for the qualifications of young people in the UK, Asos is helping to improve their qualifications through the UK Government’s apprenticeship program and its partnerships with UK universities. There are currently 187 apprentices at Asos, which is 59 apprentices per 1,000 employees and 40 percent above the industry average. Through the Asos Foundation and asos.com partnerships, the company also supports young people through its corporate responsibility programs, which aim to break down social and economic barriers and promote inclusion.
In addition to domestic and national activities, Asos supports overseas economic activities as 70 percent of the total value of all shipments is sourced from abroad. This generates global GDP and tax revenues and creates jobs in the EU, US, Asia and beyond.
Global and local
“Taking the UK and overseas impact together, Asos’ operations totaled £4.7 billion in GDP, 165,000 jobs and 1.7 billion in 2019-20 Pounds (around 2 billion euros) in tax revenue created,” concludes Asos. “Asos is an innovative British global fashion retailer that is also a key market avenue for the UK fashion and retail industry, including micro and small businesses. Asos employed an average of 3,650 people in the UK in 2019-20.
Although the company’s operations are expanding across the globe, the continued commitment to the UK is underscored by the £90m investment in a new fulfillment center in Lichfield in Staffordshire and a new technology center in Belfast,” concludes the clothing group .