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Burn, baby, burn. This is exactly what UK-based Boo.com did in the late 90s, when it burned through more than $135 million. The site was founded to become a digital center for the cool and chic, and Fortune called Boo one of Europe's coolest companies before it even launched. With so much potential, the founders aimed high, hoping to sell its items in about 18 countries. But back then, the Internet was still young, and only about 20 percent of people were online in the UK. The company built too much, too soon, and couldn't sustain itself when people didn't flock to the site. It closed two years later in 2000.
Online retailing is growing at an astonishing rate, with online sales accounting for approximately one quarter of the total retail market. Retailers who ignore e-commerce will face a substantial drop on their sales due to the fact users have been shifted to order products online.
E-commerce has become the holy grail of retail by:
-Overcoming geographical limitations: The whole world will become your playground characterised by no geographical area restrictions. In addition to that, the new e-commerce mobile devices has removed any single remaining limitation. (Boo.com app).
- Noticeable drop in costs: One of the main tangible benefits of e-commerce is the lowered costs. These lowered costs are usually passed onto customers in the form of discounted prices.
- Specific and accurate location of the product during distribution process: On a e-commerce website customers are able to use intuitive navigation to narrow down the product search immediately.
-Provide instant comparison shopping: E-commerce facilitates comparison in terms of shopping.
-Eliminate Travel costs and distance: By implementing e-commerce users will be able to visit some virtual stores by just a few mouse clicks instead of travelling long distances to reach the suitable physical store.
-Create targeted communication: E-commerce is able to access to plenty of information about its customers by basically using the information the customer provides in the registration form.
-24/7 Availability: virtual store timing are nowadays opened 27/7 365 days.
-Create markets for specific niche products: Buyers and sellers of specific niche products find extremely difficult to place themselves in the physical world. When it comes to search online, it is only a matter of customer searching.
Boo.com, as one of the leading e-commerce business in the world, pays special attention to customers. When buyers are shopping online, they are looking for a high level of transparency, reliability and a wide range of information that can make them feel as comfortable as possible with the purchase. As an e-commerce business we are currently competing with physical stores which provides customers with the advantage of seeing, feeling and touching products.
Boo.com will go an extra mile with the aim of properly educating our customers in regards to our products turning educated customers into ready-qualified customers.
E-commerce seems to be eating up the retail world right now!!
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Ludovica Sciaky
Boo.com Digital marketing Communication consultant
"What was dot-com like?"
A couple of years ago I took a job at a large agency and inherited a department of young people. On my first day we had a meet-and-greet and near the end I opened up the floor to questions. One of the team, a 24 year-old girl, asked me “what was dot-com like?” It was a funny question, it felt like when people in my generation ask their parents what the 60s were like. Anyway, that was 5 years ago and I don’t remember what I said. If asked the same today, I’d say it wasn’t all that different, only there were far fewer people involved and there was far less money floating around than there is today. But I worked with the biggest bombs of the dot-com era and when the bubble burst I braved 18 straight months of unemployment. On the bright side, being cloaked in failure certainly builds character (don't let anybody tell you different).

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Market Segments: The Pareto Principle
Created by business-management consultant Joseph Juran, The Pareto Principle, or 80/20 rule, states that roughly 80% of effects come from 20% of the causes for many events. in terms of marketing, this means that around 20% of customers account for around 80% of a companies sales.
Analysing the relationship between customers and sales this way can identify where companies should focus their attention, however, this does not mean that the remaining 80% of customers should be forgotten about. In doing so companies run the risk of limiting their sales as the 80/20 rule would still apply to the remaining 80% and EVERY sale is profitable & therefore EVERY customer is valuable.
Although not directly related to the 80/20 rule, a good example of a company who limited their market and who's company did not succeed was given to us in our Advertising and Branding lecture today. Boo.com was launched in the late 1990s when internet was becoming a popular technology in peoples homes. The website originally sold branded fashion and was one of the first companies who's website consisted of complex visuals during the days of dial-up internet. In those days, such websites required various plug-ins to be viewed, something only available to users of Windows, the most popular operating system of the time. One of the companies biggest mistakes was not making the site compatible with Mac users who made up a small section of the market but who were typically the most likely type of person to use such a site as they were considered the customers with the most disposable income. Users of Mac were arguably a segment the company should have paid more attention to although they only made up around 4% of the market. As a result the company lasted no more than 18 months. A lesson for us all!
E-Commerce Geschichte, Teil 1: boo.com
Wir möchten hiermit eine neue Kolumne in unserem Blog eröffnen: Das E-Commerce Geschichtsbuch. Darin stellen wir Ihnen unterschiedliche E-Commerce Projekte aus der, noch jungen, Historie des Online-Shoppings vor.
Schon 10 Jahre liegt es zurück, im Jahr 1999, da habe ich meine ersten Erfahrungen mit dem Online-Handel gemacht. Das Online Bekleidungsgeschäft boo.com hatte ein großes Medienecho hervorgerufen und bewog mich dazu dort meinen ersten Online-Kauf zu tätigen.