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The challenges of building a global brand



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[Chaffey, Dave] Digital business and E-commerce 2nd book

The challenges of building a global brand 

in months

The challenges of creating a global brand in months 

are illustrated well by Malmsten et al. (2001). After an 

initial round of funding, including investment from JP 

Morgan, LMVH Investment and the Benetton fam‑

ily, which generated around $9 million, the founders 

planned towards launch by identifying thousands of 

individual tasks, many of which needed to be com‑

pleted by staff yet to be recruited. These tasks were 

divided into 27 areas of responsibility familiar to many 

organisations, including office infrastructure, logis‑

tics, product information,  pricing,  front‑  end applica‑

tions, call centres, packaging, suppliers, designing 

logos, advertising/ PR, legal issues, and recruitment. At 

its zenith, Boo.com had 350 staff, with over one hun‑

dred in London and new offices in Munich, New York, 

Paris and Stockholm. Initially boo.com was available in 

UK English, US English, German, Swedish, Danish and 

Finnish, with localised versions for France, Spain and 

Italy added after launch. The website was tailored for 

individual countries using the local language and cur‑

rency and also local prices. Orders were fulfilled and 

shipped out of one of two warehouses: one in Louisville, 

Kentucky and the other in Cologne, Germany. This side 

of the business was relatively successful with on‑time 

delivery rates approaching 100% achieved.

Boo possessed classic channel conflicts. Initially, it 

was difficult getting fashion and sports brands to offer 

their products through Boo.com. Manufacturers already 

had a  well‑  established distribution network through 

large  high‑  street sports and fashion retailers and many 

smaller retailers. If clothing brands permitted Boo.com 

to sell their clothes online at discounted prices, then this 

would conflict with retailers’ interests and would also 

portray the brands in a negative light if their goods were 

in an online ‘bargain bucket’. A further pricing issue is 

where local or zone pricing in different markets exists, 

for example lower prices often exist in the US than 

Europe and there are variations in different European 

countries.




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