There are some ASX share investments that have the exposure to growth trends which could help them achieve long-term growth.
Not every growth business has to be a tech idea that's only a few years old. Some companies that have been around for a while are able to take advantage of technological changes.
With that in mind, here are two ASX shares:
VanEck Vectors Video Gaming and eSports ETF (ASX: ESPO)
This exchange-traded fund (ETF) gives investors exposure to some of the largest companies involved in video game development, eSports and related hardware and software globally.
We're talking about businesses in the holdings like Nvidia, Nintendo, Bandai Namco, Take-Two Interactive Software, Activision Blizzard, Electronic Arts, Ubisoft and Zynga.
Outlining some of the positive underlying factors for the companies in this portfolio, VanEck notes that the competitive video gaming audience is expected to reach 646 million people globally in 2023, partly driven by the rising population of digital natives.
E-sports is the combination of entertainment, video gaming, sports and media. VanEck says that with an active, engaged and relatively young demographic, the "stage is set for sustainable long-term growth". The average age of e-sports enthusiasts is under 30.
The revenue of the e-sports sector is growing very quickly, with growth of an average revenue of 28% yearly since 2015. VanEck says that e-sports has created new potential revenue streams from game publisher fees, media rights, merchandise, ticket sales and advertising.
City Chic Collective Ltd (ASX: CCX)
City Chic is a global ASX share retailer of plus-size women's apparel, footwear and accessories. It has a number of brands around the world including City Chic, Avenue, Evans, CCX, Hips & Curves, Fox & Royal and Navabi. It has around 90 stores in Australia and New Zealand, with websites, third party marketplaces and wholesale partners in North America, the UK and Europe.
It's currently rated as a buy by Morgan Stanley with a price target of $6.65.
The business is growing very quickly. FY21 revenue increased 32.9% to $258.5 million and underlying profit surged 80.6% to $24.9 million.
Its online sales are a significant and growing part of the business. In FY21, online sales rose 49.3%, making up 73% of total sales. It's also an increasingly global business, with 44.1% of group revenue being outside of ANZ in FY21.
Growth continues with new partnerships with various major retailers like Walmart, Amazon, Target and eBay. It has also launched the Avenue brand into ANZ.
In FY22, the business has continued to see "strong" revenue growth. It is also seeing a reduction in the cost of goods from the growing scale in production volume.
The ASX share continues to assess acquisition opportunities to accelerate its global customer growth.
Using Commsec estimates, the City Chic share price is valued at 30x FY23's estimated earnings.
