In case the news somehow slipped you by, Boohoo – as in the increasingly-popular online fashion store – posted pre-tax profits earlier this week a whopping 97% higher than the previous year. Having achieved massive sales growth of 51% hit a new high of £295 million, the company reported £31 million in profits, nearly twice the £16 million reported last year.
Which begs the obvious question – how? Is it simply a case of shoppers in growing numbers abandoning the high street? Or is it that Boohoo is making all the right moves in all the right places?
The short answer is, a little bit of both. But in terms of the positive and proactive efforts being made by the company itself, there are certain things Boohoo has done to drive online sales which have clearly been spectacularly successful.
1. Influencer marketing
For example, analysts predicted that the past 12 months would see an increase in spending on influencer marketing by close to 60%. Boohoo is clearly a company exploring the real potential of influencer marketing, having focused a huge chunk of its overall marketing strategy accordingly. They now use a growing contingency of bloggers and other influences to promote their products and services across multiple social media platforms. They’ve also become a high-profile fashion name and the kinds of events and music festivals that see social media swamped with promotional content.
2. Mobile focus
It is estimated that somewhere in the region of 70% of all teenagers now shop using their mobile devices. In fact, close to two-thirds (63%) of millennials use mobile devices to shop every single day without exception. So rather than simply creating a user-friendly mobile experience, Boohoo has spared no expense creating, maintaining and constantly improving one of the most outstanding mobile e-commerce experiences currently doing the rounds. If you want an example of how mobile should be done, this is where you should be looking.
3. International expansion
Unsurprisingly, branching out internationally has also brought significant fame and fortune the way of Boohoo. While the biggest international revenue increase came from US markets (140%), the brand’s global revenues outside the US and UK also increased by 40%. And with the way things are looking right now, it doesn’t appear there’s any kind of slowdown on the horizon.
4. Accessible and affordable fashion
What makes Boohoo different from so many comparable online clothing retailers like ASOS is the way in which 23% of all products available are less than £9.99 in price. Which in turn makes it the perfect retailer for the kinds of shoppers who want shiny-new things right now and aren’t willing to wait. Consistently low prices also open the door to an incalculable volume of impulse purchases.
5. Capitalising on social media and commerce
Last but not least, Boohoo has always had a reputation for delivering the highest standard of customer service, both before and after purchases are made. They’ve done a great job expanding their customer service profile by using popular social media platforms like Facebook and Twitter to their full potential. Not only does this approach to customer service often prove uniquely effective in resolving queries and problems, but it is also a proven driver of customer engagement.