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All true. But that's not why Boo went bust. The truth is, Boo sank because of a flaw in its primary premise, its very reason for being. Boo is closing because fashion forward retailing on the Internet may well be a hopeless cause. Boo had as its target audience, the young, hip, trendy shopper interested in finding the latest in clothing and shoes. That's the last group in the market for an Internet alternative to real-world shopping. For this demographic -- mostly women, mostly under 30 -- shopping is a social experience. Shopping is fun. It's the kind of thing you do with friends. It's something you can build your day, your weekend, even your vacation around. It's not the kind of thing you hope technology will one day make obsolete. JOY OF THE HUNT. Just consider for a moment the hoards of young women willing to wait in line 30 minutes just to get into the newly opened H&M store on New York's Fifth Avenue. This store stocks the latest in budget chic. You think those women wish they could be at home in their PJs, ordering silently from a backlit screen? Trust me, they're anticipating the thrill of the fashion hunt, the joy of finding the perfect item on sale, the fun of kibitzing in the dressing room with other women they've never met about whether or not Capri pants make them look fat. Real stores have a lot to offer that the Internet can't yet replicate. Sure, even for this fashionable set, some shopping is a drag, and the Internet offers a great solution. They're savvy online shoppers, to be sure, when it comes to items that aren't much fun to buy. But they're in no hurry to ditch the social enjoyment of fashion shopping for Boo.com anymore than men will give up Monday Night Football just because the scores will be posted online in real time. E-tailers aiming for the young, female fashion set had better take notice. This is a very desirable demographic to attract. In its annual survey of shopping habits, WSL Marketing Inc. reported women ages 18 to 34 are more likely than any other group to buy more than they intended and to pay full price. SOCIAL EXPERIENCE. Even more important, the survey found that young women are also most likely to consider shopping entertainment and to enjoy this entertainment with friends. Ignore that social aspect at your peril. It's what makes your target demographic tick. It's easy to dismiss Boo as an isolated screwup. It wasn't. In fact, the decline and fall of Boo a cautionary tale about a crucial shopping demographic. If e-tailers want young women to bring their many dollars of discretionary spending online, they had better be ready to compete with the land-based stores those shoppers enjoy. Because for all their problems, traditional brick-and-mortar stores are very good at making young women happy. What could Boo do for them that Gap, Prada, The Limited, and Zara could not? Not much. Figure that out, e-tailers. Or get ready to join Boo in the dot-gone line. Neuborne covers Marketing for Business Week in New York. Have a question or a comment? Let her know at ellen_neuborne@ebiz.businessweek.com. |
