It’s quite hard to believe that just 10 years ago this company didn’t exist. And yet now, with sales nearing €350m – quadruple what they were just four years ago – a market cap of €2.5bn, and a share price that has trebled in the last 12 months, Boohoo looks set to take on the world.
The company has already had a busy start to 2017, snapping up PrettyLittleThing and US-based Nasty Gal, which has allowed it to establish itself as a multi-branded business, gain access to millions of new customers, and position itself for further international growth. Around 40% of Boohoo’s sales now come from outside of the UK, driven by impressive growth this year – over 50% in Europe and 140% in the US.
Leader in the market and competitor ASOS has also seen profits rise on the back of an increase in overseas shoppers. So, with growth being fuelled by international expansion, you have to wonder what the other players in the market will do next.
Germany’s Zalando, Europe’s biggest pure online fashion retailer, is currently struggling with increasing competition from the likes of Spain-based Inditex’s Zara and Sweden-based H&M, as European retailers battle for online share. Are we likely therefore to see Zalando push international expansion harder, by way of acquisitions maybe, in order to combat increasing competition?
I wouldn’t be surprised if the recent news on Boohoo will push similar companies to make acquisitions; consumer confidence is strong and the online fashion market is predicted to grow.