An Analysis of the Current and Future Use of Internet Technologies of Boohoo.Com

Topics: Marketing, Online shopping, Electronic commerce Pages: 20 (5653 words) Published: October 15, 2012
Executive Summary
This paper will examine the current and future use of internet technologies that undertakes. ‘The company’s mission is to provide a visually stimulating, invigorating and evolving on-line shopping experience, which offers inspirational products, exciting promotions and unsurpassed customer service.’ (Boohoo, 2010) The report discusses Boohoo’s background in relation to their current market position and strategies they have implemented. Boohoo is a private limited company owned by Khosla Vinney and the accounts are not accessible to the public, yet they have survived the recent economic downfall and continue to attract ‘over 67,690 visits per day,’ (Statbrain, 2010). Porter’s Five Forces suggest that Boohoo’s threats come from buyer power including threat of substitution, as well as the treat of new entrants to the market due to low barrier to entry, the online fashion industry being one of the highest risk markets but on the other hand with high rewards. E-marketing is a large part of Boohoo’s marketing campaign, using an OPT database to collect customer information and analyse consumer spending patterns. This information is then used for viral marketing where Boohoo send out e-magazines to consumers providing recent fashion and product information. Boohoo also increases their brand awareness by advertising in popular women’s fashion magazines. When analysed by Powermapper’s Sortsite, Boohoo’s pages are compatible and have no compliance issues which are better than the all other sites, therefore working on older browsers and it fulfils regulations. Yet 72% have issues including accessibility for disabled and international consumers. Boohoo operates mainly as a B2C company selling fashion directly to the consumer however they have well established B2B links with their supplier, distributer; Royal Mail and fashion magazines; Grazia and Look. They also have a strong sale and customer service team, with 7day a week phone and email access and a bulletin page to decrease frequent problem contact. Conclusively as the embryonic market for online fashion develops, progress inevitably becomes more difficult, however to survive within the competitive market innovation is significant, therefore by improving their weaknesses and enhancing their strengths, Boohoo will continue to strive. By embracing blogs and forums, marketing target words within search engines and advertising in an alternative manner, Boohoo will increase their market share. They need to develop their webpage’s in order to be accessible to all, not offering language option, especially because ‘ASOS generates 25 per cent of its sales from outside the UK’ (Financial Times, 2010), a market Boohoo is shutting themselves away from. Also by not providing disabled friendly pages they are hindering certain consumers spending. In the future Boohoo could also look to expand their product range and increase business ventures with established names such as PayPal in order to increase consumer satisfaction. Finally on the customer service improvements they could offer an ‘unlimited next day delivery service which gives consumers encouragement to increase the frequency of orders while giving them a loyalty incentive.’ (Financial Times, 2010) Despite this Boohoo’s website achieves their mission requirements; epitomising innovation, flexibility and commitment to quality and service that fashion retailers need to establish themselves in today’s highly competitive global fashion market

Fashion retailers’ websites are now the favourite destination for online shopping, despite the recession, the online fashion market continues to boom. ‘E business is the transformation of key business process through the use of internet technologies.’ (Chaffey, D, 2009). The concepts that Boohoo implement from Rappa’s model is the Virtual Merchant, through the notion of selling their products online solely. This report will analyse...

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*Price offering the clothes for, cheaper than ASOS (ASOS, 2010)
*Items featured heavily in magazine fashion shoots, press facility page on website, just click to buy
*Offers on student beans and magazine pages, promotional codes (student beans, 2010)
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