Nicola Radin Looks At This Manchester Based Online Fashion Retailer Who Are Cashing In on A Clever Affliate Model.
Online shopping is continuing to grow, something which has been attributed to faster and cheaper access to the Internet. In 2006 £30.2bn was spent online (IMRG, January 2007). It has even been predicted that by 2011 there will be 32m UK consumers shopping online, adding up the value of their goods to almost £52bn. (Forrester, UK ecommerce Forecast 2006-2011, March 2007). Boohoo.com is a prime example of the development of e-commerce, demonstrating the move from the shop floor to the cybernetic window. Boohoo is an internet fashion retailer who has chosen to locate their business in the heart of Manchester. Their exterior may look like any other former factory but inside their cool interiors (I’ve heard rumours of parrots in reception) reflects their inspired designs based on the latest catwalk styles. Founded in 2006 Boohoo has built a reputation for high quality, high fashion, reasonably priced clothes with the added bonus of next day delivery.
Boohoo knows how to utilise the internet to maximise its business, Boohoo affiliates is proof of that. Boohoo affiliates offers small online business the chance to advertise Boohoo.com on their website and in return the business will receive 8% commission from the new sales it has helped boohoo generate. Cookie systems monitored by a third party, Affiliate Window ensure unbiased, transparent financial results for the small businesses. Boohoo is paying for advertisement that it knows has generated sales, compared to other companies who are paying premium rates for advertisement spots on specific websites related to their products. That’s a very nice business model-and its clearly paying off.
Locating their head office in Manchester offers cheaper office space compared to London where rivals ASOS are based. Both have a similar demographic but Boohoo’s cheaper prices for similar products may well give them the edge. Boohoo realised that in today’s digital age being based in London is not vital part of a successful business, especially not an Internet one. Their advertisement model and location has helped to give customers competitively priced fashion products, which is essential in an online market more competitive than ever, as well as exhibiting the integrity of Boohoo’s ethos.
The real proof of Boohoo’s success is in emulation. Only this month Boohoo was awarded an injunction in a landmark case against new company Miss Boo, who were targeting the same audience as boohoo and selling similar items. Boohoo was concerned that customers searching for their companies website might land on Miss Boo and not know the difference due to their similarities. Google AdWords were used as evidence of the potential trademark infringement.
Boohoo’s clothes, shoes and accessories are featured regularly in magazines such as More, Heat and Closer because their products emulate the catwalks at such a good price. They are leaping from the cybernetic ether to the print of the real world.
Nicola Radin is a Freelance Writer based in Manchester, UK