RE: UKNM: Boo positive

[David Simpson]

 > > If this 40% off sale captured business from someone like Chris that

might

 > not have shopped there at full price then REPEAT.  Why wait till July.

 >   Like the lastminute.com idea for hotels & airlines,

 > manufacturers want to

 > turn merchandise before it goes stale.

 >

 > Take for example an e-fashion company like gap online

 > (http:\\www.gap.com).


In Boo's case there is surely an even stronger argument - whilst not much of

Gap's merchandise is exactly *original* they can at least claim that it's

*exclusive* and therefore can't be undercut by another retailer on any

specific item.  If you can build_the_brand well enough (and Gap seem to have

pretty much got it cracked right now) you are in a much stronger position

than, say, Boo who for all the *stylised* presence are only resellers

relying to a greater or lesser extent on supplier brands.  If consumers are

looking to buy a branded product they will surely be drawn to the reseller

who they trust to supply it cheapest.


Basic economics suggests that (if they stick by this stated policy) Boo will

be undercut by a competitor who is prepared to accept lower margins on an

ongoing basis.  Whilst this theory is undermined to some extent on the high

street where *exclusivity* can come as much  with where you purchase as what

you purchase it is a fairly robust one in *e-retail*.


I think (hope?) that Boo are having us all on - they'll stick to a two sales

a year policy as long as they can hoping that they can build a strong(er)

identity b4 a pile_it_high_sell_it_low competitor comes along then start to

discount on an ongoing basis *forced* to accept lower margins but by then

enjoying higher volume of sales.


Which all works very well - nothing more complex than a bit of A-level

economics - until the supplies who are king in this model start to throw

their weight around.........



 >

 > Boo shared the day's figures. I don't remember them exactly but they were

 > something like 330,000+ visitors and 1,300+ sales averaging about US$50 a

 > sale.  Wonder what their visit/sale ratio is during the sale period?



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