Marketing investment to drive growth of new brands

Boohoo increased its marketing spend by £22m in the year to 28 February, as the online fashion giant made record investments across its multi-brand platform. The investment came despite rising costs and weaker demand taking a significant toll on the group’s profits.  Boohoo reported adjusted EBITDA profit of £125m for the year, a 28% drop from the previous year and flat compared to two years ago. In particular, Boohoo said its higher marketing costs were a result of the business investing in its newly acquired brands. The company has been on something of an acquisition spree over the last few years, acquiring the MissPap, Karen Millen and Coast brands in 2019, and in June 2020 the Warehouse and Oasis brands.


Read more:


https://smartstream21.net/


Last year saw Boohoo acquire familiar British high street names including Debenhams, Dorothy Perkins, Wallis, and Burton. According to group chief financial officer Neil Catto, there is an elevated level of marketing on these new brands of around £11m. Speaking on an investor webcast today (4 May), Catto said he is confident this investment will produce growth for the company. We’ve been building the portfolio of brands over the last couple of years, and we’ve got a big portfolio there that is producing rates of growth that you’re not seeing from the more established brands. So that’s going to start to come through in the second half of the year, he said. However, GlobalData’s senior apparel analyst Emily Salter says the success of Boohoo’s acquired brands is not a certainty.


The question of how successful its acquired brands are remains, she says, even as the business utilises its expertise with increased marketing activity for brands such as Karen Millen and Dorothy Perkins on social media and out-of-home. Boohoo also partnered with celebrities Christine Lampard to promote Wallis, and Laura Whitmore to promote Oasis, she notes. With a much broader portfolio of brands, Boohoo claimed to have a larger addressable market. The business said it had identified around 500 million potential customers across its brands, and is now looking towards longer-term competitive positioning over the next few years. The company expects to emerge from the pandemic in a far stronger position compared to two years ago.


Increased marketing spend across the group’s new and established brands is aimed at supporting this future growth, co-founder and group executive director Carol Kane said. We’re investing in the future to enable our brands to scale above and beyond what they’ve already achieved this year, she said.


The inflation impact Online retailers experienced a spike in demand during the pandemic, and so for Boohoo, a key focus for the next year is retaining the significant market share gains it made over the the last two years in the UK and US. Active customer numbers has grown by 43% across the group to 20 million since 2020, and 10% over the last 12 months. Total group sales are up 61% since 2020, while in the UK, Boohoo recorded 27% revenue growth during the last financial year. The UK is Boohoo’s biggest market, accounting for 61% of its revenue. The success in the UK represented good brand positioning and strength of brand portfolio, the group said.

Comments

Post a Comment

Popular posts from this blog

The Return of the Weird Blockbuster

Doctor Strange in the Multiverse of Madness raises the question: Is Sam Raimi the best director to ever be attached to a Marvel movie? He doesn’t have an Oscar like Chloé Zhao or Taika Waititi, the sorts of filmmakers who, if nothing else, win Oscars (their movies really make you think). He doesn’t typically do prestige, and he avoids serious subject matter. But Raimi is also a singularly kinetic visual storyteller—a true showman—and, in his way, a transformational figure in the recent history of American cinema. When Raimi directed the first (and arguably best) Spider-Man in 2002, comic-book properties were a volatile prospect, if not an all-out gamble. The Joel Schumacher Batman movies were a pop-culture punch line, and R-rated Bayhem was all the rage. That Spider-Man surpassed even the most optimistic box-office expectations is only part of the story, however. The fact that a major studio would entrust such a valuable title to a guy like Raimi—whose most famous movie to that point f
Read more

Batman Beyond Settles Tony Stark vs Bruce Wayne

Since both characters are billionaires without inherent superpowers who use their wealth to develop a method to fight evil in their respective worlds, the debate over who is better between Batman and Iron Man has raged for decades—but an issue of Batman Beyond proves that Iron Man is superior. Tony Stark first became Iron Man after he was captured as a prisoner of war and developed a suit that could keep him alive following a nearly fatal injury. Since then, he continuously created better versions of his original design until he was successful in developing an entire army of his suits that he can control remotely in what's known as the Iron Legion. Bruce Wayne, on the other hand, refined his body and mind rather than just his suit upon his entrance into the superhero world. Bruce trained with the greatest masters of basically every kind of martial art to make himself the pinnacle of what human beings are capable of. However, in the neo-tech future of Batman Beyond, Bruce is a lot o
Read more

Release and Streaming Play Set Firm Day Theatrical to Italy

A move that will transform Italy’s relationship with Netflix, the Italian government has set a firm three-month time window between a movie’s theatrical release and when it can drop on a streaming platform. The announcement was made by Italian Culture Minister Dario Franceschini during a Rome confab on the state of the country’s film industry held by the country’s motion picture association ANICA. The minister said he has signed a law that will extend the existing 90-day theatrical window for Italian films that had benefitted from government subsidies to now include all films, regardless of where they are produced or how they are financed. Due to its having a more flexible windowing policy than France, Italy in recent years has been an interesting testing ground for the theatrical releases of Netflix titles, largely because the Venice Film Festival is a frequent launching pad for the platform’s original films. Here I will inform you of the films that have just been released and can be
Read more