Ahead of etailer Asos’ results there was speculation that the online fashion specialist was being eyed as a possible takeover target by Amazon.

Ahead of etailer Asos’ results there was speculation that the online fashion specialist was being eyed as a possible takeover target by Amazon. It would be no surprise if Amazon had cast its slide-rule over Asos – it would be more shocking had it not. Asos was one of the trailblazers in etail and has remains top of its game.

The interesting point is why Amazon would want to pounce, especially given that the capitalisation of AIM-listed Asos dwarfs many of the best-known and longer established retailers listed on the main market.

Of course, Amazon would be buying a business with great consumer resonance that is putting on sales and profits in a field where Amazon is not all-powerful – fashion.

One reason why Amazon is not as dominant in fashion as in other categories is that, although things are changing, it approaches apparel in the same way it does highly commoditised products that have been its bread and butter. 

You might be able to sell socks that way, but not to establish a reputation as a fashion destination. That entails great product stories and engagement with the consumer.

Asos has those qualities. Stand outside its office when people arrive for work and you’ll notice the etailer is staffed by the sort of people who are also its customers.

Yet Amazon is said to frequently have problems recruiting. That’s why it has just opened an office on east London’s so-called Silicon Roundabout, home of trendy young things and tech start-ups. Acquiring Asos would, in addition to business benefits, bring a youthful attitude, a connection to fashion lovers and desirability as an employer that it lacks.

The irony is that a deal would likely destroy the very things Amazon would hope to gain. What makes Asos distinct would be forced into Amazon’s rigid tramlines.

Should Amazon – or anybody else – ever make an offer, of course Asos shareholders would consider it seriously and might choose to sell up. But they also know that they do not need Amazon to continue growing and, if they want to sell, could probably a find a buyer still willing to pay top as well as be more of a kindred spirit.