Boohoo: How a market stall became an international fashion empire

Boohoo: How a market stall became an international fashion empire

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Executive Summary

Boohoo: How a market stall became an international fashion empire


Although Boohoo has been on the online fashion retail scene since 2006, the company has stood out for its exponential growth in recent years, which has seen it become an international fashion empire. This case study explores the key ways the company has fueled such strong growth, from its streamlined supply chain, to its mastery at digital marketing. Although challenges lie ahead in the competitive online retail market, the future remains bright for Boohoo, which currently shows no signs of slowing down.

Key Highlights

- In 2006, Mahmood Kamani and Carol Kane co-founded Boohoo, 12 years later the company is worth a staggering GBP2.3bn (USD 2.9bn). The company has benefited from the rise of the online retail market and the consumer demand for fast and affordable fashion, which has proved to be a recipe for success in today's competitive market.

- In the world of fast fashion, bringing on trend products to market within the shortest possible time is crucial and has been a key factor in driving the growth of Boohoo. A short and lean supply chain has helped drive Boohoo's swift sales growth, catering to the consumer appetite for immediacy and leaving other retailers in the dust.

- Perhaps the most crucial factor in spurring the success of Boohoo has been its marketing strategy, which focuses particularly on social media. In addition to its own hefty social media following, Boohoo made the prudent decision to get celebrities and influencers with large social media followings on board to endorse its products, allowing the company to further broaden its reach.


- Examines the strong growth of Boohoo in the online fashion retail market

- Looks at the benefits of the company's supply chain

- Assesses the power of social media marketing

- Analyzes the ways the company engages with Millennial and Generation X consumers

- Examines potential challenges that lie ahead

Reasons to buy

- How is Boohoo growing so quickly?

- How does the company benefit from its supply chain?

- What impact has social media marketing had?

- How does the company interact with its target audience?

- What could potentially threaten the company's growth in the future?

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Ken Research
Ankur Gupta, Head Marketing & Communications


Table of Contents

Overview 2

Catalyst 2

Summary 2

Boohoo has grown rapidly from market stall to fashion empire 5

The early adopters of online retail 5

Revenues soar as the group diversifies 5

Boohoo has avoided the woes of the high street 6

Boohoo's group strategy has proved to be a recipe for success 8

A streamlined supply chain has kept Boohoo at the forefront of fast fashion8

The brand offers a comprehensive, ever changing product range 9

Boohoo has utilized the power of social media platforms 10

The influencer effect 10

Engaging with the Millennial and Generation X consumer 12

Acquisitions and expansion into international markets has unlocked the potential for future growth 13

Ongoing investment in technology and online platforms 14

The future looks bright, but challenges still lie ahead 16

Competition in the online apparel retail market is fierce 16

Boohoo must continue to avoid negative perceptions of the brand 17

As an online pureplay retailer, system and technical failures are a major risk 17

Conclusions 18

Streamlined supply chain, highly effective digital media campaigns and acquisitions should continue to deliver growth 18

Appendix 19

Sources 19

Further Reading 19

Ask the analyst 20

About MarketLine 20

Disclaimer 20

List of Figures

Figure 1: Revenue of Boohoo, GBPm, 2014-2018 6

Figure 2: Openings and closures of multiple retailer units, 2013-2017 7

Figure 3: Boohoo benefits from an agile supply chain 9

Figure 4: Boohoo has expanded its range to feature 27,000 styles 10

Figure 5: Boohoo's collaboration with Jordyn Woods highlighted the power of social media 'influencers' 11

Figure 6: BoohooMAN collaborated with Dele Alli ahead of the World Cup 12

Figure 7: Boohoo's content resonates with its target audience 13

Figure 8: Revenue of Boohoo by geographical region, GBPm, 2016-2018 14

Figure 9: Revenue of Asos, GBPm, 2013-2017 16

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