Boohoo gains further market shares in the eCommerce fashion market with the acquisition of Karen Millen and Coast
Boohoo was founded in 2006 as a UK-based online fashion retailer specializing in own brand fashion clothing. Today, boohoo group plc is a leading online fashion retail group, which not only has a strong presence in the United Kingdom, the United States of America, Europe and Australia, but also sells products globally. The company already owns the brands boohoo, boohooMan, PrettyLittleThing and Nasty Gal. With these fast fashion brands, the company reaches young buyers between 16 and 30. Currently, boohoo group plc has almost eleven million active customers. Furthermore, in late March 2019, boohoo group plc acquired another fast fashion brand, MissPap. The company decided to widen their target market with a new high price segment, and in August, Karen Millen and Coast, online retailer of renowned British brands, was acquired for 18.2 million £. The goal of this acquisition is to reach more customers by gaining another target group in the global online fashion market. Karen Millen and Coast perfectly complement the existing group brands with premium work wear and occasion wear.
The eCommerce net sales of boohoo group plc in the global market account for 857 million £ in 2018, which shows a year-over-year growth of 48% compared to 2017. Compared to previous years, when year-over-year growth already reached the double digits, the company’s net sales development in 2018 was still remarkable. Most of boohoo group plc revenue was generated by the boohoo brand. Its revenue grew by 16% compared to 2017. PrettyLittleThing’s revenue increased by no less than 107% and it’s the second largest brand of the group. The sales of the third brand, Nasty Gal, increased by 96%.
It is expected that by the end of 2019, the eCommerce net sales of the company will have grown by approximately 25% and broken the US$1 billion barrier. After the acquisition of three brands in the beginning of 2019, there is strong evidence that boohoo group plc will grow even more strongly and capture greater market shares in the United Kingdom and in the global fashion market.
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