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The company also mysteriously decided to pay postage on returns, but even more importantly, sales never reached expectations. The company spent $135 million of venture capital in just 18 months and it was placed into receivership on 18 May 2000 and liquidated. The company’s goals to dominate the world’s global online retail sales with its virtual doors open throughout Europe and America fell through the roof by the end of its 1st year since launched globally.
“The ‘BOO’ brand name originated from film star Bo Derek; best known for her role in 1979 Blake Edwards film 10. The domain name ‘bo.com’ was unavailable, but adding an ‘o’, they managed to procure the domain ‘boo.com’ for $2,500 from a domain name dealer.”
Rob Talbot, director of marketing for Boo.com:
“Boo were “looking for a name that was easy to spell across all the different countries and easy to remember ... something that didn't have a particular meaning”.
The market for clothing was viewed as very large venture at that time, so the idea was to capture only a small part of this market, which guaranteed success in the founder's mindset. They listed brands like Polo Ralph Lauren, Tommy Hilfiger, Nike, Fila, Lacoste and Adidas. The proposition involved sports and fashion goods alongside each other.
The market on the basis of imminent success was indicated by New Media Age (1999) where it was described as:
“The $60b USD industry is dominated by the Gen-X'ers who are online and according to market research in need of knowing what is in, what is not and a way to receive such goods quickly. If Boo.com becomes known as the place to keep up with fashion and can supply the latest trends then there is no doubt that there is a market, a highly profitable one at that for profits to grow from.”
The growth in market was also supported by retail analysts, with Verdict predicting online shopping in the United Kingdom to grow from £600 million in 1999 to £12.5 billion in 2005.
Boo.com wanted to develop an easy to use experience which re-created the offline shopping experience as far as possible;...