Undoubtedly the fashion market is one of the fastest paced industries there is and the speed at which trends and fashion change continues to keep retailers fighting to ensure that they are keeping their products relevant to the modern look, however in a time where larger designer brands are struggling, one retailer has revealed huge profits this year and projections show that isn’t about to stop any time soon.
Boohoo, a retailer that sells both on and offline have revealed that last year the company recorded a staggering 51% increase in sales, reported to have amounted to a total of £294.6 million and securing double the profit from the year before.
Their success seems to shine through in the United States though, where their sales grew 145% in a period where high street retailers were closing their doors at alarming rates.
While many claim that their raise in statue is attributed to their foundation of being an online store, analysis undertaken by Goldman Sachs seems to show another reason for their success, claiming that they are simply faster than their competitors.
Things such as the constant flow of ‘Just In’ items will always help a fashion retailer capture their market, however acknowledgement of the companies ability to quickly restock popular products is thought to be the main contributor to their success.
A telling part of their ability to replenish stocks comes as the BBC claim that Boohoo are able to produce products in a low quantity initially to sell on their website, allowing them to test the market while keeping potential costs low.
Accreditation to success for Boohoo was always going to be pushed towards their online presence, however while it is their website that is making the sales the growth of social media marketing can’t be ruled out of their online strategy, with their social networking channels having huge amounts of reach into the online community.
As a Boohoo shopper myself I can see why they have seen a raise to greatness as they do offer some fantastic stuff and I can see where people are coming from when they claim that they can see the ‘ASOS factor’ in them.
Keep up the good work Boohoo, you deserve your time in the spotlight.