Increased demand for beauty products and activewear have been key drivers in a 329 per cent jump in profits for ASOS during the first nine months of the year.
The UK online fashion retailer with major sales in Australia has grown its global customer base by 3 million to 23.4 million since the beginning of the year.
Sales to August soared 19 per cent, pushing pre-tax profit to AUD$259.1 million.
Based on its latest results, the UK-based fast fashion specialist plans to triple its cosmetics business over the next year.
ASOS launched a beauty and grooming division in 2004, re-branding as Face + Body in 2017. Over the past three years, the number of brands available has increased from 110 to 240, including The Ordinary, M.A.C and Aussie favourite, Bondi Sands.
Cosmetics and beauty now account for 5 to 10 per cent of total global sales.
In July, the Charlotte Tilbury brand debuted a three-month pop-up hub on ASOS offering a curated collection, including bestsellers Magic Cream, Airbrush Flawless Foundation and Pillow Talk.
Rival online Australian player, The Iconic, has launched a new beauty destination, following the debut of its Wellness offering in September.
Over 80 brands are available, including Aesop, Foreo, L’Occitane, Real Techniques and Napoleon Perdis. Clarins, Elizabeth Arden and The Ordinary are expected to join the retailer’s offering in the near future.
Prices range from $10 to $799 for the Dyson Airwrap Styler across makeup, skincare, haircare, fragrance and makeup tools.
According to CEO, Erica Berchtold: “Having pioneered fast and on-time delivery, free returns and the best curation of fashion, sports and kids brands, beauty is a natural progression for The Iconic.”
Germany-based Zalando, a major European online player with AUD$10.7 billion in sales in 2019, also enjoyed a 27 per cent surge in revenues in the first nine months of the year, fuelled by beauty and activewear sales.