Boohoo Addresses Revenue Decline With Online Fashion and Beauty Marketplace

Bohoo Launches New Online Marketplace: Key Insights

• Diversification Strategy: Boohoo is diversifying its product range through Boohoo Brands to address declining revenues and increased competition.

• Partnerships: The marketplace features high-profile brands and leverages Boohoo's stake in Revolution Beauty.

• Enhanced Customer Experience: Boohoo aims to provide a wholesome shopping experience, offering a wide range of products in fashion, beauty, and lifestyle.

• Mirakl: Boohoo Brands utilizes Mirakl’s eCommerce software.

Like other UK fashion retailers, Boohoo has faced declining sales due to factors such as Brexit, increased competition from Chinese fashion giants such as Shein, and reduced consumer spending in the UK. To counteract this downward spiral, Boohoo is launching an online marketplace this week featuring up to 200 brands across fashion, lifestyle and beauty.

Boohoo Marketplace: Strategic Response to Revenue Loss

Since the end of the pandemic, Boohoo has suffered huge losses in revenue. The company's revenue fell by 17% to $1.8 billion last year. To address these challenges, Boohoo is exploring new strategies, including the launch of Boohoo Brands, to diversify its offering and stabilize its financial position.

Boohoo Brands: A Curated Shopping Experience

Boohoo Brands will initially feature 150 to 200 labels, including household names such as Alexander McQueen, Balenciaga, Gucci, Valentino, Off White and Urban Bliss. The marketplace will also offer beauty products from top brands such as L'Oréal Paris, Garnier and Revolution Beauty, in which Boohoo holds a 26.5% stake. The platform aims to become a "one-stop destination" for all fashion, beauty and lifestyle needs.

James Blacklock, Boohoo's Chief Product Officer, emphasized the company's commitment to enhancing the customer experience by offering diverse, high-quality options in one convenient location. He also claims that the marketplace will enable Boohoo to quickly onboard new brands and strengthen relationships with existing partners.

Mirakl Shop Software

Boohoo's marketplace, called "Boohoo Brands", uses Mirakl's eCommerce software. This is the same technology that powers the Debenhams marketplace, which Boohoo Group acquired in 2021.