Boohoo

    Boohoo SWOT & PESTLE

    • Report

    • ID: 531461
    • 18 Pages
    • October 2021
    • Region: Europe
    Report Menu

    About Boohoo

    Boohoo operates as an online fashion retailer, offering apparels such as trendy dresses, quirky tops to its targeted customers.  Boohoo engages in the provision of its products intentionally, catering to customers from almost every country. Its headquarters are stationed at Dale Street, Manchester, United Kingdom and it was founded in 2006 by Mahmud Kamani and Carol Kane, who now predominantly function as the face of the company. Boohoo generates almost $1.11 billion in sales and has secured the jobs of around 2600 employees at its corresponding locations. The company subsequently owns prestigious clothing brands such as PrettyLittleThing, Nasty Gal, MissPap, Karen Millen and Coast brands. These brands, similarly design, manufacture, retail and sell clothing and other accessories to target young consumers.  Boohoo has been confirmed to bloom as Primark’s sales plummet at the advent of the 2020 pandemic. The pandemic has started to “pay off” for the brand as Boohoo implements strategies on their website that has sparked a new wave of success for the company.  According to sources, Boohoo has introduced and brought its loungewear to the forefront of its websites as other companies plummet with their archaic summer trends. Due to the lockdown, Boohoo has highly profited from this endeavor, raising its profit margins drastically.  Boohoo’s CEOS have secured a place in fashion retail as the most powerful people for 2019 according to Draper’s annual list.

Boohoo’s unique selling proposition or USP lies in being a leading online fashion retail group, specializing in own-brand fashion clothing. Its mission statement reads “To lead the fashion e-commerce market globally, in a way that delivers for our customers, people, suppliers, and stakeholders.” Boohoo’s vision is to be leading the e-commerce fashion market for 16 to 30-year-olds, which we will drive through our strategic priorities: Insight, Investment, Innovation and Integration.

    Business Sector

    Fashion and Lifestyle

    Operating Geography

    UK, Europe

    Revenue

    GBP 1,234.9 million – FY ending 29th February 2020 (y-o-y growth of 44%)

    GBP 856.9 million – FY ending 28th February 2019

    SWOT

    SWOT Matrix for Boohoo

    Strength

    Weakness
    1. Diverse portfolio of brands along with a strong global presence
    2. Robust growth in the company’s financial performance
    3. Highly effective and automated distribution centres
    4. Successful in implementing “fashion-for-all" approach
    1. Brand reputation getting tarnished from the surrounding controversies
    2. Lack of diversity in body-positivity movement

    Opportunity

    Threat
    1. Collaboration with known personalities like rapper Quavo and Jon Jones to increase visibility
    2. Online retail on the growth momentum amidst “social distancing” measures in Covid-19 era
    3. Using digital fit technology to enhance shopping experience
    1. Impact of UK’s exit from UK on the consumer confidence
    2. Fast changing consumer preferences in fashion
    3. Increasing competition in fashion retail

    Detailed SWOT Analysis of Boohoo

    The detailed SWOT analysis for Boohoo is presented below:

    Strength

    1. Diverse portfolio of brands along with a strong global presence: Boohoo has an incredible and diverse portfolio consisting of seven respected and market-leading brands. This helps the company to bring up to the minute apparel items including clothing, shoes, accessories and beauty to the millions of customers, spread all across the globe. The abilities of the operating platform, in which Karen Millen and Coast have also been added, and the economies of scale of Boohoo get leveraged due to its brand portfolio. The brands target at the consumers lying in the age group of 16-30. On top of it, Boohoo has established its footprints all over the world and sells its products globally, with an exceptionally strong presence in the UK, US, Australia and Europe.
    2. Robust growth in the company’s financial performance: With the entire fashion and retail industry sales turnover getting hit severely by the Covid–19 pandemic, Boohoo has remained unperturbed and showed significant results for FY2020 in line with similar trajectory the company has been following since inception. Announcing the results for the financial year ended 29 February 2020, the company performed outstandingly with a 44% increase in the revenues accounting to £1.235 billion, across the group, with exceptional growth across all operating geographies with 39% increase in the UK and international turnover up by 51%. Currently, the revenues obtained from the international segment attributes to 45% of total as compared to 43% in 2019. In terms of the company’s performance of its allied brands, Boohoo’s revenue saw an increase of 38% to £600.7 million and down 30bps, upon 52.6% gross margin. Furthermore, the brands PrettyLittleThing and Nasty Gal projected revenue increase of 38% and 106%, to hit £516.3 million and £98.8 million on a gross margin of 55.6% and 54.2%, down 100bps and 250bps respectively.

    Weakness

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    Opportunity

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    Threat

    This section is available only in the 'Complete Report' on purchase.

    PESTLE

    PESTLE Matrix for Boohoo

    Political

    Economic
    1. Impact of Brexit on the online retail sector
    2. Offset of events like US-China Trade War, slowdown affecting consumer confidence across the globe
    1. Changes in macroeconomic indicators like currency exchange rates

    Social

    Technological
    1. Increase in customer actions with an increase in active internet & smartphone users
    2. Social media a strong influencer in fashion industry
    1. Incorporating automation in warehouses such as The Burnley Distribution Centre
    2. Technological trends of 3D-printing and body scanning

    Legal

    ENVIRONMENTAL
    1. Clash between Boohoo and USDAW over the Covid-19 fashion face masks launched by Boohoo
    1. Adoption of 100% recyclable parcel bags made from recycled material
    2. Increasing the sustainability quotient of products

    Detailed PESTLE Analysis of Boohoo

    The detailed PESTLE analysis for Boohoo is presented below:

    POLITICAL

    1. Impact of Brexit on the online retail sector: The impact of the UK leaving the European Union has significantly impacted all the industries, but it has opened many doors for the online retailers due to the changes in the exchange rate. There is still the risk of  increase in the tariff which might be imposed on the imported goods. This does not impact Boohoo on a large scale as only 10% of inventory is produced in the EU. Boohoo has a diverse portfolio of suppliers all over the world and it constantly changes its suppliers which provides best prices and quality. The competitive margin will be reduced and the import and export will be difficult because of the delay at ports but the group says that they have implemented a plan to import and export goods to and from the EU amidst no-deal Brexit.

    ECONOMIC

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    SOCIAL

    This section is available only in the 'Complete Report' on purchase.

    TECHNOLOGICAL

    This section is available only in the 'Complete Report' on purchase.

    LEGAL

    This section is available only in the 'Complete Report' on purchase.

    ENVIRONMENTAL

    1. Adoption of 100% recyclable parcel bags made from recycled material: With the rising awareness amongst the consumers regarding the importance of fashion sustainability, all the responsible corporations in the fashion and retail industry are moving towards the adoption of a circular economy. Boohoo has also been taking actions in this direction and has been monitoring and reporting all its wastage, along with diverting landfill wastes from its warehouses. The company has been involved in the recycling of paper and plastic wastes from the warehouses and sites. Moreover, to reduce its environmental footprints, this online fashion group has planned to introduce a collection of sustainable fibres, like recycled polyester using plastic bottles. Boohoo has ensured that all of its dispatch bags are made from 100% recycled film, by using a closed-loop recycling system that includes reprocessing bags that can be recycled at homes after removing the barcode label. Also, in 2019, Boohoo launched a collection having 34 garment pieces including co-ord sets, going out dresses, bodysuits, flares and crop tops that are made from 95% recycled polyester and 5% elastin.

    More Info

    Major Competitors

    • Pink Boutique
    • iKrush
    • The Modist
    • Missguided
    • Missy Empire
    • H&M
    • ASOS

    Major Brands

    • Boohoo
    • BoohooMan.com
    • Karen Millen
    • Nasty Gal
    • PrettyLittleThing
    • Coast
    • Misspap

    Table of Contents

    • Company Overview
      • 1.1 About the Company
      • 1.2 Business Sector
      • 1.3 Operating Geography
      • 1.4 Revenue
    • SWOT Analysis
      • 2.1 SWOT Table/ SWOT Matrix
      • 2.2 SWOT Overview
      • 2.3 Detailed SWOT Analysis
      • 2.4 Strength, Weakness, Opportunity and Threat
    • PESTLE Analysis
      • 3.1 PESTLE Table/ PESTLE Matrix
      • 3.2 PESTLE Overview
      • 3.3 Detailed PESTLE Analysis
      • 3.4 Political, Economic, Social, Technological, Legal and Environmental
    • Appendix
      • 4.1 Major Competitors
      • 4.2 Business Sectors / Diversification
      • 4.3 References used to prepare this reports
    • Conclusion
      • 5.1 Closing thoughts
      • 5.2 Methodology used to prepare this report
      • 5.3 Copyrights and Disclaimer

      References and Copyright

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