Boohoo Brand Presentation

Page of Contents § Introduction

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§ Executive Summary

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§ History

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§ Brand

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§ Mission Statement

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§ Customer Profile

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§ Market Position

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§ Competition

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§ Marketing Methods

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§ PESTLE Analysis

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§ SWOT Analysis

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§ The Future

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Introduction ยง For this presentation I have analysed online fashion retailer Boohoo and their marketing and branding strategies to further understand the company and see how they could improve in the industry. I have evaluated many aspects of their business and the market they operate in, which include their history, target audience, competition, strengths and weaknesses. I have also looked into how they remain successful and what they plan to do to keep this up in future.

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Executive Summary § Boohoo is a UK-born company founded in 2006 and has since become one of the most successful online retailers. They are a 24/7 global fashion brand with thousands of products available on their website. § They are aimed at young adults and generally attract those between 16-25 years old. After originally being aimed at women, they now also target men since the launch of BoohooMAN in 2013. § They appeal to a wide range of customers with their many collections including BoohooBeauty, BoohooFIT and BoohooPremium. § They have been international since 2012, launching in Australia and the US and now deliver to over 100 countries. They have various delivery options such as standard, next day and Sunday delivery to suit all their customers. § They have an app and an Instagram account with over 6,000,000 followers and offer customers the option to buy products directly from their Instagram. § They aim to bring affordable fashion at good value for money which stays on trend by introducing over 100 new items daily. They want to keep it accessible and fun for all their customers. § They raise money for charities such as the Teenage Cancer Trust and raised over £36,000 for various charities in 2018. They are also working on sustainability issues by offering discounts to customers who recycle their clothing through the reGAIN app.

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History § Boohoo was founded in 2006 by Mahmud Kamani and Carol Kane in Manchester § In 2007 they started to do printed campaigns to promote themselves and were recognized as a ‘Top 10 Online Fashion Website’ in Cosmopolitan magazine § They received another mention as a top 10 online retailer in Heat magazine in 2008 § In 2009 they launched catwalk videos and were named ‘Best Newcomer’ in the Cosmopolitan Online Fashion Awards § They were widely recognized as an affordable brand in 2010 as they received the ‘Best for Bargains’ award in the Cosmopolitan Fashion Awards, and the ‘Brilliant for Bargains’ award in the Reveal Click to Buy Awards § They also relaunched their boohoo.com website in 2010 § In 2011 they started advertising in the UK and Ireland and launched 360 degree viewing for shoes and accessories on their website § They became international in 2012 by expanding to America and Australia and won the ‘Best Online Retailer’ award in the Lorraine Awards (which they also won in 2013 and 2014)

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History § In 2013 they expanded their business by opening an office in London and launched BoohooMAN § By 2014 Boohoo became a Public Limited Company and had local language websites in Spanish, German and French § They also launched BoohooPLUS that year to further expand their customer-base § In 2015 they created the Boohoo app for easier access to their products and gained their first million followers on Instagram § Also in 2015 they launched BoohooFIT and expanded their offices to New York § In 2016 they launched BoohooKIDS and reached 1,000 employees § In 2017 they started BoohooPremium and BoohooBeauty, continuing to expand their range of products and collections § They currently own other successful brands such as Pretty Little Thing and Nasty Gal, and have gained over 6 million followers on Instagram

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Brand • Boohoo is a UK-based value brand which offers clothing and accessories of a basic quality at affordable prices and focuses on mass production rather than luxury • They are a 24/7 online retail company and have over 6 million active customers, the majority of which are women aged 16-25 • The products they sell are mainly from their own brand and include clothing, shoes, accessories, beauty and their international delivery service • Boohoo offers clothing ranges such as Petite, Tall and Plus to appeal to as many customer groups as possible • They promote themselves through TV adverts, social media, celebrities and their website • A big part of their brand is about giving their customers an easy and enjoyable shopping experience, so they have accessible product sections and the option to save payment details and addresses for repeat customers • They have apps both for Boohoo and BoohooMAN for easier access to their products, and have various logos for each of their ranges

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Mission Statement § Boohoo are guided by their values of passion, agility, creativity and teamwork. They have an inclusive culture and aim to operate fairly and sustainably. They believe it is vital to run Boohoo in a way that benefits all of their stakeholders and they maintain contact with them regularly. § “Our vision is to be leading the e-commerce fashion market for 16 to 30 year-olds, which we will drive through our four strategic priorities: Insight - creating a competitive customer proposition. Investment - delivering organic growth to increase market share. Innovation driving customer engagement. Integration - integrating new brands.” § As a company, they are working towards their aim to grow in the online fashion retail markets both in the UK and internationally by efficiently sourcing products. § Boohoo aim to celebrate and promote diversity through their inclusive brands such as BoohooPLUS. They take inspiration from their customers to provide the latest trends at reasonable prices. They are always working on developing their ranges in order to supply clothing that will fit every size and shape. They also work closely with various agencies to promote a healthy body image amongst their models. § Boohoo are strongly focused on customer services. Given that they are a 24/7 fashion brand, they know the importance of having an easy ordering service for their customers and being able to promptly sort any problems. To enforce this, they offer free returns within the UK and have a 24 hour customer services team available to support their consumers.

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Customer Profile ยง Name: Holly Mitchell

ยง Main Pass-times: Exercising/going out/studying/working

ยง Age: 20 years old

ยง Customer Behaviours: Interested by adverts on Instagram and offers through email/most likely to browse when there is a sale on or if there are offers of cheap or free delivery/the option for free returns is also essential

ยง Race: White British ยง Occupation: Student with a part time job earning ยฃ200-ยฃ300 per month ยง Marital Status: Single ยง Children: None ยง Location: Living in a house around the value of ยฃ200,000 with parents and siblings/living inshared student halls during university term time ยง Main Pass-times: Exercising/going out/studying/working

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ยง Customer Behaviours: Interested by adverts on Instagram and offers through email/most likely to browse when there is a sale on or if there are offers of cheap or free delivery/the option for free returns is also essential

ยง Spending Behaviours: Good with money/prioritises buying essentials over shopping for pleasure/will spend more if receives or saves more money than expected ยง Style: Fairly mainstream with notes of originality and edge/Appreciates simple pieces that can be worn with anything ยง Appearance: Blonde, mid-length, straight hair/hazel eyes/slim figure/average height/fair skin ยง Aspirations and Behaviour: Is hardworking and wants to be successful in life/is concerned about important world issues such as climate change and would love to see brands supporting this ยง Fashion Needs: Wants to feel confident and original with her choice of clothing, and will be happier with purchases when they are good value for money/wants to know that the brands she shops with are supporting charities and important issues ยง Social Media: Regularly uses Instagram, Snapchat and Twitter

Market Position High Price

High Quality

Low Quality

Low Price

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Older Audience

High Price

Modern

Elegant

Low Price

Fashion Focused

Timeless

Younger Audience

Competition § Boohoo’s biggest competitors are other online fashion retailers such as ASOS and Missguided, as they all offer similar products and services and attract the same customer groups. The budget online fashion industry is huge and continues growing as social trends change in favour of this way of shopping, so there are many competitors within this field. § ASOS can be seen as Boohoo’s most fierce competitor, as it offers different things to customers. Where Boohoo stocks mainly products from its own brand, ASOS has items from hundreds of different retailers and therefore attracts more customers. ASOS has around six years more experience in the industry than Boohoo, and offers different technological features on its website, making it easier for customers to find their preferred products and get the sizing right. Boohoo offers clothing at mainly lower prices than ASOS, and therefore has items at a lower quality, which attracts customers who have less disposable income. § To stay near the top of the online retail fashion industry and keep competing with brands like ASOS, boohoo needs to have high levels of customer satisfaction, and ensure their clothing quality matches their pricing.

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Marketing Methods § Boohoo uses many methods of communication and marketing to attract their customers through their website, emails and social media § Their website shows their current deals and has the headings of different sections of their products to make shopping easier for their customers. § Their emails also contain details of current sales and deals, usually with subject lines such as ‘Hurry, don’t miss out’ to create a sense of urgency § Their Instagram page is full of sales promotions, competitions and celebrities, as well as posts that aim to relate to their target audience § All these methods help them to keep attracting customers and increase sales

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PESTLE Analysis § Political – Boohoo’s long-term financial situation can be greatly impacted by the political factors of the countries they operate in, as they affect social trends. The trading regulations in each country may be different for Boohoo, so they need to adapt to each one in order to avoid any legal difficulties. They also need to stick to any minimum wage and employee benefit laws in each country where they have employees. § Economical – If the retail fashion industry is a very small part of a country’s economy it may not be beneficial for Boohoo to operate there as it may cost them more than it will make. They also need to carefully evaluate exchange rates in each country to convert prices on each of their international sites. § Social – Social factors have a huge impact on Boohoo, as trends amongst the population are constantly changing and people have different attitudes towards fashion and clothing. In recent years, many people have been more conscious of health and fitness, so this impacts the clothing bought by people on Boohoo to fit this trend.

Culture also affects social trends, as many cultures are integrated in today’s society and influence our sense of style.

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PESTLE Analysis § Technological – As Boohoo is an exclusively online fashion brand, technological factors are essential when it comes to how they operate and innovate to maximise profits. They can do this by using tools to estimate a customer’s clothing size so they feel more confident in choosing a product. They need to be able to keep up with technological advancements to stay relevant in their industry. § Legal – The laws in each country can affect the way that Boohoo operates there, such as those regarding data protection and health and safety. If a country has loose laws around business, Boohoo could be in danger of copyright and intellectual property damage which could harm their company. § Environmental – As Boohoo is international, each country it operates in can have different standards regarding sustainability and the environment, therefore affecting its process and supply chain. There are also diverse climates in other countries, which may affect Boohoo’s ability to deliver packages as expected by their customers. Given that environmental issues are becoming more and more concerning, it’s vital that Boohoo can recognise how to improve their business to help this problem, or they will lose customers due to being seen as irresponsible.

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SWOT Analysis § Strengths – Boohoo is one of the leading organisations in its market and is a well known and trusted brand, which makes it easier for them to become successful when entering new markets. It has a very reliable network of distribution which helps it to be seen as a trustworthy company that its customers can rely on. Boohoo has the ability to introduce over 100 new products every day, and therefore can keep customers interested and encourage them to keep visiting their website. The business has a fairly high level of customer satisfaction due to its 24/7 customer service and over 10 years of experience in the online fashion industry. Its suppliers are reliable and therefore there is little risk of problems in the supply chain from raw materials to customers. § Weaknesses – Although they introduce hundreds of new items every day, Boohoo’s products aren’t innovative, so similar things can be found easily from other retailers. As their products are low in price, the quality of some items may not be as high as expected by some customers. This can cause an increase in the amount of returns and can potentially put customers off shopping there again. When Boohoo offers free delivery deals, there is a risk of them losing money if a customer returns their order, as the company still has to pay shipping charges. Given that Boohoo is a lower end brand, it often follows the trends of luxury brands and therefore can be seen as lacking in originality. Due to the age of Boohoo’s target audience, it is likely that they will have low disposable income and so may not spend much money there.

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SWOT Analysis

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Opportunities – New opportunities often come up for online retailers like boohoo as social trends change. The current drive for better sustainability within the fashion industry provides Boohoo with the opportunity to work towards using less packaging (which will lower costs for them) and attract customers concerned about the current environmental situation. They have taken advantage of this by giving customers the option to recycle their unwanted clothing through the reGAIN app in return for discounts. The development of new technologies and platforms has meant that Boohoo can reach out to a huge number of people through social media, and offer customers an easier shopping experience through their app.

Changes in consumer behavior mean that Boohoo can develop their range of products into new areas, such as catering to those who are into fitness. They have responded to these opportunities by introducing ranges such as BoohooFIT and BoohooPremium.

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Threats – Some of the biggest threats to Boohoo are their competitors, as they offer similar products and services which may be preferred by their customers. If one of these competing companies introduces a similar item to one that is featured on the Boohoo website but at a cheaper price, it is likely that they will lose customers for that item to their competitor. Regular changes in laws regarding product standards and workers rights can threaten Boohoo’s success, as at times they may have to focus more on ensuring they are following these laws than attracting more customers. They may also have to spend large amounts of money on changing their policies to fit the laws in each country in which they operate. As an international company, changes in the value of currencies in different countries are a constant threat to their success in these markets.

The Future § In order to stay a relevant competitor in the online fashion retail industry, Boohoo must think about the future of their company and what it will look like. As their market is crowded, they need to bring something new in terms of their products, website, or services. § They could do this by introducing new features to their website which allow customers to fill our a profile stating their height, skin-tone, hair colour, preferred styles and size to generate outfit ideas with correct sizing. This could help customers with their decisions and generate higher customer-satisfaction levels. § Another thing they could do is follow the steps of Amazon and introduce a same day delivery option, however it would be necessary to do market research into this idea as it would be an expensive service both for Boohoo and their customers. § Customer retention and being able to understand new generations as they become new customers are vital for Boohoo’s future, so they need to continue looking at social trends to adapt with the times. It could be beneficial to offer existing customers the option to complete surveys for their market research in return for rewards such as discounts. This would both increase sales and help Boohoo to understand their audience. § There is a current gap in the market for fashion amongst teenagers aged 12-16, so it could be useful for boohoo to introduce a range for people in this age category. If there are limited places where this age category can find clothing, Boohoo are likely to profit from this if they can create a good range. However, they need to be able to successfully target the parents of these teenagers as they will most likely be the ones buying the clothing and therefore need to approve of it.

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