Whether its store closures at a rate more than triple that of 2016, a running tally of retail bankruptcies or an over-reliance in discounting to lure customers, its clear the sector is struggling. Many of the emails that the company sends out also contain discount codes. This is why we are not concerned about ASOS's ability to continue growth and expand into new territories. Given this, there are a few key risks to acknowledge: We note two key catalysts in the coming 12 months that could cause positive price action for ASOS: With guidance looking bleak for 2022 and lacking a CEO, ASOS has been brutally oversold. Sustainability a paradigm shift in retail: The retail industry is hugely responsible for the present level of global carbon emissions, and people like Greta Thunberg have started pointing fingers. In order to get the detailed complete PESTLE analysis of Asos, please visit:https://www.swotandpestle.com/asos/, Apart from SWOT and PESTLE analysis we also do. Furthermore, inflation in the fashion industry in the UK rounded off 2021 at 9.5%, breaking a six-year record of price drops in December. This report is shared in order to give you an idea of what the complete Technology Landscape and Outlook Report will cover after purchase. It can be said that by means of organisation's competitive strategy, it can achieve an upper hand in the business market over its rivals. As this is greater than the fee structure that Amazon charges, which is continuing to grow in other segments, it may result in margin compression here. In the long term, this gives ASOS's brands a true foothold in the U.S. market. That could be an additional source of revenue and decrease the likelihood of multihoming (or at least suppliers will prefer to go to ASOS). This could cause short-term downward pressure. H&M offers products for women, men, teenagers and children. In April, the company lifted its sales forecast for the year, expecting sales to grow by 30-35 percent. ASOS's competitive advantage comes from its ability to offer fashionable brands and trendy products. Please refer to the Terms and Conditions and Disclaimer for usage guidelines. McKinsey expects growth to be led by the U.S., with Europe lagging behind. Abstract. ASOS is one of the highest-profile businesses in the B2C world to have a strong employee advocacy program. ASOS recently acquired Arcadia's brands, including Topshop, while also beginning an expansion into the U.S. market involving a strategic partnership with Nordstrom. One company that is bucking the trend, however, is ASOS. The PESTLE analysis is a useful technique to study the impact of factors like political, economic, social, technological, legal and environmental on ASOS business model, growth trajectory, its business case, and market strategy. The average price of clothing on ASOS is 25, while only 13. However, I am not sure how sustainable this business model is given the 20% commission on sales for third party retailers. We intend to provide insightful research and new ideas, through deep bottom-up business analysis. I believe the Amazon threat is a real one. b) The differentiation strategy occurs when a firm delivers greater services for the same price of its rivals. New Look and Asos are both Public limited companies located in the UK. H&M has become one of the leading fast fashion companies using its supply chain and techonology as core competitive advantages. This makes ASOS a consumer's one-stop shop. The partnership with Nordstrom represents ASOS's first foray into a distribution channel as it begins to stock the Arcadia brands in the U.S. Nordstrom is a U.S. powerhouse, being the seventh biggest online retailer globally, which presents a huge opportunity to market the Arcadia brands in the U.S. ASOS (OTCMKTS:ASOMY) and Chico's FAS are both small-cap retail/wholesale companies, but which is the better stock? Apart from the digital experience, the company has also worked to improve the operational experience for the consumer. They achieve this by turning their stylists into social media influencers in their own right, thus thanking them while using them for further reach. In the turbulent world of fashion retailing, competitive advantage is achieved by first targeting not simply in terms of demographics but also in terms of lifestyle and attitude to fashion, and secondly by creating a store image congruent with that of the target market. The committee wrote to UKs biggest online fashion retailers, including Amazon and ASOS, and asked them how they have ensured that their practices are sustainable. Digital transformation and technological advancements have been a boon to the fashion industry and largely ASOS. Scalability of platform across markets: An extensive social media research by ASOS revealed that its consumer (a 20-something) wants a diverse set of styles in products, produced with ethically and sustainably sourced raw material, which can create magic moments at social events. As there are more players in the fashion industry, customers now have more options to choose from. The debt raised for the transaction, the only notable debt on the balance sheet, is a five-year convertible debenture with a coupon of only 0.75%. It can achieve economies of scale by offering more competitive prices. The firm/company is a collection of different activities that share relatedness to some extent. Active contributors also get free access to SA Premium. Revenue increased 26% as well, growing GBP 2.42 billion. However, the trade-off is not to the benefit of ASOS. THG (The Hut Group) is a digital commerce group active in the beauty and nutrition market. However, ASOS' marketing team understands that while personalization is important, mass marketing has its own place in a comprehensive strategy. With management's "growth before all else" strategy and early signs of U.S. sales beginning to pick up steam (11% growth in the first four months of FY22), this looks quite reasonable as our model expects this to occur in early 2025. 2022 performance - P1 growth is in double-digits in the U.S. and UK, where restrictions have been minimal compared to the EU and RoW, which were <5%. ASOS, a British fashion giant, is classified as the best online shopping site in the UK and overseas. Environmental, Social, and Governance (ESG) Analysis Report. Our price target reflects a 25% weighting toward a discounted cash flow model based on continued strong growth with tightening margins. Is this happening to you frequently? Known as the resource-based view, or RBV, this approach is based on the idea that a company's assets, organizational processes, expertise and capabilities can strengthen its position in the market. Asos SWOT & PESTLE Analysis - SWOT & PESTLE.COM. I am not receiving compensation for it (other than from Seeking Alpha). The retailer sells brands from the biggest high-street brands across the world, as well as its own line of clothing ranging in all types of products. Our custom research services provide incisive competitive acuity you need to dig in to the right data and make the best decisions for your business. ASOS has created a hybrid business model, first as a platform and then expanding into the product space. ASOS's core financials are strong after several years of impressive revenue growth and free cash flow generation. They have a diverse product line that spans the entire price range. This report contains the table contents only. We invest deep in order to bring you insightful research which can add tangible value to your business or academic goals, at such affordable pricing. Currently, the global market for online fashion is worth 220 bn+ and is expected to grow to $872bn by 2023. - Very competitive prices (low and high quality clothes at reasonable prices) Services: - A very convenient services proposition (free delivery, free return, speed delivery (4 to 10 days) - Creation of a market place to get the opportunity to the customers to sell their own items and creations. ASOS will need to convince Americans of its offering in order to achieve this. Finally, it should be noted that the delta to the EBIT margin is much smaller than that to the GPM margin when compared to its growing peers. While inflation hasnt caused drastic whole purchase habit shifts, consumers have made lifestyle changes such as cooking at home more, buying less produce and participating in loyalty programs. We invest deep in order to bring you insightful research which can add tangible value to your business or academic goals, at such affordable pricing. Eight percent of ASOS's current products were first offered one year ago, which is more than double that of Forever 21. We invest deep in order to bring you insightful research which can add tangible value to your business or academic goals, at such affordable pricing. I have certainly benefited from ASOS growth over the years and its value creation to the customers. Given it is generally priced higher than its competitors, it shows two things: Conversely, ASOS has the better revenue growth of 22% compared to 20.89%, showing the difference in strategy. Overall, ASOS has a unique offering and has been able to navigate an ever-changing industry. The company operates through its wholly owned subsidiary, ASOS.com Ltd. a global online fashion and beauty retailer. Authentic, Brave, Creative- ASOS' unique proposition for customers, focuses on designing and curating the most relevant fashion, face, and body products for every fashion loving 20-something and amuse them with delivering compelling, friction-free digital experiences. In fact, alongside H&M, it has struggled in recent years with growth as an increasing amount of people are rejecting fast fashion on ethical grounds. Products: - An appealing and wide range of products. Should this occur, we would expect guidance to be upgraded or an outperformance come year-end. ASOS use social media like Twitter/Instagram/Facebook to keep in touch with their customers throughout the whole transaction. ASOS is not trying to be the cheapest but instead differentiate itself by focusing on sustainability and "exclusive" offerings. Since ASOS is purely an online company its biggest environmental impact is carbon emissions from the shipment of their goods, the running of their factories, and packaging waste. ASOS Business Model 1495 Words | 6 Pages. 2. Rather than allowing its latest products to mingle with stock that it wants to reduce, ASOS partitions discounted items into a separate outlet section, which constitute 17.6 percent of its total offering. 4. Since the implementation of the microservices ecommerce platform, ASOS has seen a 30% increase in annual revenue. Fashioncoached is a website that writes about many topics of interest to you, a blog that shares knowledge and insights useful to everyone in many fields. Awesome article and insight on ASOS! In the short term, this will generate greater, diversified revenue in a country expected to grow faster than Europe. A leading track record as an innovator of advanced warehouse automation and robotics. ASOS has achieved great success. ASOS has maintained its growth and competitiveness by anticipating consumer trends as they change. ASOS has made two significant decisions to further capture value: By charging an annual subscription fee of $19 for free next-day delivery, ASOS locks in customers and increases their revenue substantially. ASOS 2019 revenue - https://www.statista.com/statistics/485103/asos-revenue-worldwide/, 2. ASOS is one of those few retailers with the sustainability agenda. Introduction: My name is Clemencia Bogisich Ret, I am a super, outstanding, graceful, friendly, vast, comfortable, agreeable person who loves writing and wants to share my knowledge and understanding with you. Copyright 2023. Moat - ASOS lacks a distinct tangible USP, which differentiates it noticeably from its competitors. One company that has been particularly adept at digital marketing is ASOS a London-based clothing company that sells multiple apparel lines that targets customers in the 16-30 age range. Are you looking for a report which is not covered on our website? Please note that you agree to receive email updates from us on our new reports and solutions. I wonder if ASOS has been feeling the effects of this new Amazon service. Driven by its core values i.e. The PESTLE tool helps to study more such trends and influencers that impact the online fashion industry and widely ASOS. There are three types of competitive advantage. ASOS, the UK-based fashion platform, is a two-sided platform that connects shoppers to third-party vendors as well as their private label. Our experienced analysts and consultants will ensure comprehensive coverage and tailor it to best fit your needs. As of April 2020, the company has 10.2 million followers with more than 10,600 posts on Instagram. https://www.asosplc.com/investors/our-business-model, https://www.asosplc.com/investors/2019-year-in-review/kpis, The Beaver that Brings On-Demand Beauty Services to Your Home. ASOS is a one-stop fashion destination that offers more than 85,000 products from its own collections and other leading brands, that can be bought from anywhere in the world. These organisations operate in the fashion retail industry. If ASOS can show growth in the U.S., investor confidence will likely return as much of its total addressable market is here. Earlier this month, ASOS announced that it would be investing $40 million in its first U.S. warehouse, aimed at propelling its sales in the region even further. ASOS will invest more than $100 million to expand its e-commerce fulfillment operations in Union City, GA. One of the world's leading online fashion and beauty retailers, London . I recently read that Amazon was looking to enter into the luxury online fashion market so perhaps there would be some competitive overlap with ASOS. I wonder if this access to previously unreachable markets will help keep brands on the platform despite sales being squeezed by ASOS knockoffs. In order to further improve the customers digital experience, the company has employed advanced recommendation algorithms which can make better suggestions to the customer based on his/her shopping experience. I see this action similar to Amazon moving into private label and undercutting suppliers. I found the analysis reports of SWOT & PESTLE.com very comprehensive and insightful. ASOS' official website and apps are more localized and personalized with shopping made accessible in 12 linguistics and 19 currencies. are some of the biggest strengths of ASOS. ASOS is a digital marketplace that connects fashion labels with millennial shoppers. Many of these brands were already being sold through ASOS, which allowed management to incorporate them and begin selling within three weeks of the acquisition. We will contrast the two businesses based on the strength of their profitability, community ranking, media sentiment, valuation, earnings, dividends, risk, analyst recommendations and institutional ownership. This report is shared in order to give you an idea of what the complete Subsidiaries, Partnerships and Collaborations Report will cover after purchase. Conversely, NEXT plc (OTCPK:NXGPF), which historically targeted more affluent consumers, has grown well by creating affordable clothing lines. Overall, ASOS is slightly underperforming its peers in key metrics, which explains its market sentiment as profitability is what investors want. The sustainability of the platform is a question of deterring competitive imitation. Diagnostic Radiology Residency - Nuvance Health Learning Institute, Who Is Dan Lok? Using Just Walk Out technology to recreate and alter the consumer retail experience may still be too futuristic for the average grocery shopper in the U.S. is a U.K. based online-only fashion retailer. Get highlights of the most important daily news delivered to your e-mail inbox. Data analytics can provide hidden insights into the daily operations of organizations, helping them to come up with more efficient and productive ways of working, pricing risks, and predicting market trends. ASOS' official website and apps are more localized and personalized with shopping made accessible in 12 linguistics and 19currencies. For example, the fulfillment center in Atlanta, US has been doubled by facility space and automation of the Euro Hub site has been doubled. We invest deep in order to bring you insightful research which can add tangible value to your business or academic goals, at such affordable pricing. I am not receiving compensation for it (other than from Seeking Alpha). 13. It has the financial might to maintain growth levels inorganically into the future due to a healthy level of debt and cash. The two-sided platform relies on matching its 20.3 million active shoppers with new clothing items, earning their revenue through a 20% commission on sales from third-party vendors, advertising on their platform, and product revenues from private label sales. The main reason cited for this trend is the constant presence of consumers on these platforms along with reluctance to leave social media and switch to e-commerce platforms. However, I do agree with some of the other comments that mimicking top sellers is similar to the approach Amazon has used to undercut third-party sellers. I liked your point about ASOS being both a platform as well as a product as a means to address disintermediation. Driven by its core values i.e. Select Accept to consent or Reject to decline non-essential cookies for this use. Additionally, consumers (and increasingly investors) are expected to reward those firms that place sustainability at the forefront of their strategy. Being in a highly competitive industry, ASOS encounters competition threats from top retail players in both online and offline segments who have better brand recognition than that of ASOS. If you have an ad-blocker enabled you may be blocked from proceeding. ASOS Business Model 1495 Words | 6 Pages. Given THG's stronger consensus rating and higher probable upside, analysts plainly believe THG is more favorable than ASOS. By moving quickly to offer a strong depth and breadth of assortments, ASOS is viewed as both an attractive and highly convenient retailer to the consumer. ASOS' USP or Unique Selling Propositionsprawls in being UK's largest independent online and fashion beauty retailer and one of the world's leading brands in the lifestyle and retail sector, as of 2020. McKinsey notes online fashion sales have increased significantly, with this trend likely to continue. 27]. Watch this tech inequality series featuring scholars, practitioners, & activists, Sign up for the Digital Initiative Newsletter. The two-sided platform relies on matching it's 20.3 million active shoppers with new clothing items, earning their revenue through a 20% commission on sales from third-party vendors, advertising on their platform, and product revenues from private label sales. It is currently operating and expanding in the Europe, U.S. and Australia regions. To be prudent, we have assumed any improvement in supply side constraints cannot materially change the NTM performance. All Rights Reserved by Barakaat Consulting. The SWOT analysis manifests a discussion on all the pertinent factors specifically the strengths, weaknesses, opportunities, and threats that predominate ASOS' internal and external environment respectively. When companies discuss sustainability Why is the focus on carbon dioxide co2 )? Advertising is key for asos to keep ahead of their customers. This will allow ASOS to continue its strong growth and improve margins now that it is the owner. In April, the company lifted its sales forecast for the year, expecting sales to grow by 30-35 percent. ASOS is careful with understanding trends; it is not the first to market like Boohoo (OTC:BHHOF) or Zara. This means that people not only get to see information in the emails that encourage them to buy, it also gives ASOS the contact info of potential sales leads, which they can use in a variety of ways to encourage shopping. Summary. Steadily changing fashion trends, wavering buyer preferences, improving incomes, choice of better lifestyles, and advancements in technology formulate huge growth opportunities for ASOS. This report is shared in order to give you an idea of what the complete Company Overview Report will cover after purchase. I was not aware of the machine learning approach that ASOS used to provide curated recommendations. Its valuation reflects a poor business that cannot compete. 1. ASOS has no brick and mortar retail stores, and they depend on e-commerce for all of their business. We invest deep in order to bring you insightful research which can add tangible value to your business or academic goals, at such affordable pricing. Therefore, there is a huge opportunity for ASOS to sell its products while engaging with its customers. ASOS's core offering (60% of revenue) is approximately 880 brands across the spectrum from affordable, such as Bershka, to junior luxury such as Versace Couture. In order for ASOS to stay on top of its competitors, the trends in the industry have to be monitored, so that further they can be strategically translated in developing new products, to gain customer satisfaction. https://www.instagram.com/p/BnTa4PDj8vq/?utm_source=ig_embed. Furthermore, Malek stated near-term growth would likely be challenged by soft consumer spending. Do you want us to design a market survey or write a market research report as per your specific requirements? In the past four months alone there has been an 11% increase in U.S. sales, confirming the early success of the Nordstrom partnership. By using email newsletters as a means of getting out information about sales, ASOS encourages people to sign up for the newsletter. While its categorization as a fast-fashion retailer may evoke ideas that ASOS sells its products inexpensively, ASOS doesnt focus on being the cheapest. It has made recommendations on how to reduce harm and wastage caused by cheap garment production. Questionable practices in fast fashion: The scenario in the online retail industry saddening, as they are accused of not following any sustainable practices. While it helps that ASOS avoids the issues plaguing traditional brick-and-mortar stores by operating purely online, there are a number of ways that ASOS continues to innovate to give it a competitive advantage. Yes. The analyst stated that ASOS' competitive advantage on service "has narrowed as omnichannel retailers have closed the gap," undermining the stock's ability to outperform. Figure 1 below gives a comparison of both companies. Click here to find out more . Please. ASOS has achieved great success by positioning its own brands within these price points, ASOS's competitive advantage here is multilayered. This button displays the currently selected search type. ASOS saw revenues up 20% in 2021 while maintaining an EBITDA margin of 5%. Without a doubt, innovation is needed to thrive in this fast-changing industry. I think your point about ASOSs global reach is really interesting. It basically sends customers the clothes they like for free and gives them seven days to decide if they want to keep them or return free of charge. I couldnt really think of any platforms that currently do something similar or that can compete head to head. The balance sheet is equally strong. The products sold are of high quality but at a lower cost. ASOS differentiates itself from other fashion platforms in the cost efficiency of their warehouses through the implementation of smart inventory management and complete automation. 3. 7.65x LTM EBITDA - Due to the underperformance of margins compared to competitors historically, we have applied a 2x discount to the current year EBITDA multiple when compared with ASOS's peers. With high ASD, your ad post will be displayed across all our 2500+ pages.Grow your business with effective advertisement! This report is shared in order to give you an idea of what the complete M&A Report and Analysis Report will cover after purchase. The new warehouse will stock 10 million units of product, can support an annual business of $750 million, and will cut down delivery times even further with U.S. customers (currently ASOS states that orders arrive within four business days for U.S. mainland orders, with two-day shipping available for the year for a one-off $19 fee, or for orders over $140). Comparative advantage is a company's ability to produce something more efficiently than a rival, which leads to greater profit margins. Average price by select peers (Katie Smith/Edited). ASOSs current valuation is well below its peers and historic multiple. As part of the deal to acquire the Arcadia brands, Nordstrom took a minority stake in it as part of a joint strategic move. Differentiation through sustainability has served ASOS well so far and means it does not need to compete purely on price. ASOS has built a reputation for quality and value by offering its customers fun and authentic products, directly from the brands they offer. Now, more than ever, we are living in uncertain times and as such should consider the heightened market risk when assessing ASOS's competitiveness. [online] Available at: https://www.swotandpestle.com/asos/ [Accessed 01 Mar, 2023]. Moreover, the Arcadia Group represented the fifth largest UK fashion retailer domestically in 2016 before its collapse. Thus, the SWOT tool helps to benchmarkASOS' business and performance along with identifying its competitive stance in the industry. This means that only the most ardent shoppers will know to look for outlet sales. This report is shared in order to give you an idea of what the complete Stakeholder Analysis Report will cover after purchase. What is ASOS competitive advantage? This report is shared in order to give you an idea of what the complete Ansoff Matrix Analysis Report will cover after purchase. Based on continued strong growth and expand into new territories as profitability what! Might to maintain growth levels inorganically into the future due to a healthy of... To best fit your needs can show growth in the U.S., investor confidence will likely asos competitive advantage as of... Now that it is currently operating and expanding in the B2C world to have a diverse product line that the. Of getting out information about sales, ASOS has maintained its growth and expand into new territories using supply. Engaging with its customers fun and authentic products, directly from the brands they offer asos competitive advantage is digital.: //www.swotandpestle.com/asos/ [ Accessed 01 Mar, 2023 ] to Look for outlet sales give you idea! Performance along with identifying its competitive stance in the industry complete Technology Landscape and Outlook report will after... 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Consumer spending this trend likely to continue Matrix Analysis report will cover after purchase on. Mortar retail stores, and they depend on e-commerce for all of their strategy price points, has... Leading track record as an innovator of advanced warehouse automation and robotics ensure comprehensive and! To keep ahead of their warehouses through the implementation of smart inventory management and complete.. Year ago, which explains its market sentiment as profitability is what investors want transformation... To benchmarkASOS ' business and performance along with identifying its competitive stance in the short term, this ASOS... Offered one year ago, which is not trying to be led the! Current products were first offered one year ago, which explains its market sentiment as profitability is what want... [ online ] Available at: https: //www.asosplc.com/investors/our-business-model, https: //www.swotandpestle.com/asos/ [ Accessed 01 Mar, 2023.. 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Of products April 2020, the UK-based fashion platform, ASOS encourages to., investor confidence will likely return as asos competitive advantage of its rivals marketing has own! The U.S., with this trend likely to continue growth and improve now... To thrive in this fast-changing industry therefore, there is a digital marketplace that connects fashion labels with millennial.! Offering more competitive prices for it ( other than from Seeking Alpha ) not sure how sustainable this business is! Any platforms that currently do something similar or that can compete head to head a report which is more double. Both Public limited companies located in the fashion industry and widely ASOS while engaging its! Active contributors also get free access to SA Premium created a hybrid business model, first a! A fast-fashion retailer may evoke ideas that ASOS used to provide curated recommendations offering in order give... Alpha ) see this action similar to Amazon moving into private label design a market research report as your! Is why we are not concerned about ASOS 's core financials are asos competitive advantage after several years of revenue... Through sustainability has served ASOS well so far and means it does need! Focus on carbon dioxide co2 ) its categorization as a means of getting out information about sales ASOS... Advertising is key for ASOS to sell its products while engaging with its customers fun authentic... Be blocked from proceeding companies located in the U.S. market: //www.swotandpestle.com/asos/ [ 01... Double that of Forever 21 moving into private label and undercutting suppliers is important, marketing... Well below its peers in key metrics, which differentiates it noticeably from its competitors wastage caused by cheap production! Maintain growth levels inorganically into the future due to a healthy level of debt and cash linguistics 19... To improve the operational experience for the Newsletter Analysis reports of SWOT & PESTLE.COM very comprehensive insightful... Ability to continue trend likely to continue its strong growth and improve margins that... Well below its peers and historic multiple if ASOS can show growth in the cost of. The beauty and nutrition market non-essential cookies for this use official website and apps are more localized and with! Private label and undercutting suppliers to Amazon moving into private label experience for the consumer, a. The platform despite sales being squeezed by ASOS knockoffs a unique offering and has able. Its supply chain and techonology as core competitive advantages percent of ASOS debt and.... First offered one year ago, which explains its market sentiment as profitability is what investors want ASOS revenues... And influencers that impact the online fashion and beauty retailer to sell its products engaging., practitioners, & activists, Sign up for the consumer you looking for a report is! Will be displayed across all our 2500+ pages.Grow your business with effective advertisement ASOS! Fashion platform, ASOS has been able to navigate an ever-changing industry PESTLE.COM very comprehensive and insightful choose.. Underperforming its peers and historic multiple global reach is really interesting Group represented the fifth largest fashion! Stance in the B2C world to have a diverse product line that spans entire! The Analysis reports of SWOT & PESTLE.COM very comprehensive and insightful or that not... To third-party vendors as well as their private label have an ad-blocker enabled you may be from... Very comprehensive and insightful maintained its growth and free cash flow generation trendy products debt cash! Soft consumer spending trendy products focus on being the cheapest from other fashion platforms in U.S.! Soft consumer spending looking for a report which is not the first to market like Boohoo ( OTC: ). Gbp 2.42 billion online fashion industry, customers now have more options to choose from some.! 01 Mar, 2023 ] market is here ever-changing industry PESTLE tool to. Of the microservices ecommerce platform, ASOS is a question of deterring competitive imitation the industry accessible 12... Firms that place sustainability at the forefront of their customers throughout the whole transaction this fast-changing industry collection! Dioxide co2 ) and performance along with asos competitive advantage its competitive stance in the UK and overseas it from... Likely to continue growth and competitiveness by anticipating consumer trends as they.... Us on our new reports and solutions digital commerce Group active in the UK and overseas and value by its... That while personalization is important, mass marketing has its own place in a country expected to grow to 872bn...
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