Online Fashion Growth by 2015

3635 Words Nov 14th, 2012 15 Pages
University of the Arts London

London College of Fashion

PG Certificate in Buying and Merchandising

Online Fashion Market to grow 45% by 2015:

Changes in traditional Supply Chain Management and

Shifts in Marketing Strategy and Tactics

December 2, 2011

Zoe C. de la Borbolla del Valle

STUDENT ID: DEL11346120

Introduction

If Internet was disabled now, 30% of the almost seven billion world population would face severe problems and their economies would be put at risk of a full blown catastrophe (Dholakia et al. 2002). The most affected regions would be North America, Europe, Asia and Japan, which immensely depend on the Internet to continue enjoying the way this tool has eased and shaped the lifestyle in
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The company received an investment of ₤80 million and created a cross-channel advertising campaign through TV, radio and fashion magazines. Such campaign successfully created brand awareness and expectation from the public (Collier, 2008).

However the company only managed to launch after a six months delay, due to technical problems. At the time, only 20% of UK households had access to dial up internet connection compared to the 73% of UK households having access to broadband today. Back then, potential customers experienced slow browsing, unpractical design overloaded with heavy graphics. According to a report from the Financial Times, the amount of possible transactions was of three per twenty minutes (Financial Times, 4th November 1999). Consequently, after only 18 months Boo.com was bankrupt.

In conclusion, fragile PR strategies lost potential customers’ credibility since they failed to launch when announced. Then the company failed to achieve a marketing strategy since they were not able to anticipate and identify their customers´ needs and was therefore not able to meet their demands from the very beginning. The company also failed to hire the right people, able to offer the right shopping platform that could provide an easy and enjoyable navigation experience leading to poor sales and the inevitable failure of Boo.com.

“Nothing endures but change” – Heraclitus

The