Showpo is one of Australia’s fastest growing online fashion retailers, based on the sunny shores of Sydney, Australia (Showpo.com, 2019). The company was founded by Jane Lu [CEO] in 2010 . The fashion empire is all about creating a fun and positive shopping experience for women all across Australia, while being industry leaders (Showpo.com, 2019). Their team aims to empower the minds of young women and to be a women’s go to place to shop.
Showpo generates revenue through selling various clothing items and accessories. The organisation has rapidly grown from generating $7.5 million in revenue in 2014 to producing $30 million in revenue in three short years. The young entrepreneur aims to reach $100 million in annual revenue by 2020 (Powell, 2017).
The ideal target market for this firm is women aged 18-30. The label generates a positive, sophisticated and happy vibe and offers products for festivals to office wear to a night out. By catering to many different events, the brand can expect to maintain a high profit margin (Powell, 2017). In 2019, the beauty brand launched a wedding line which has the power to attract potential buyers outside of the established target market.
In 2018, the fashion retailer took action to save her company from a downfall. The company experienced delays in the processing of orders through the manufacturing company. The customer service team was flooded with emails from consumers enquiring about their late orders and struggled to stay on top of them. Lu took action by training all 35 employees [at the time] in customer service regardless of their position in the company to avoid experiencing another episode similar to this (Powell, 2018).
The team at Showpo are dedicated to giving customers the ultimate experience. Providing consumers with items they want and giving them a positive experience creates brand loyalty and a higher profit margin for the company. They continue to expand their range, offer new products and cater to those outside their target market. The pricing of items for a company is risky, especially if the business wishes to make and maintain a reasonable profit margin. Creating a brand that is in demand allows the organisation to set their prices a little higher than their competitors.
(2018) Our Story, Available at: https://www.showpo.com/eu/our-story (Accessed: 6th September 2019).
Powell, D. (2017) Four lessons from Showpo founder Jane Lu’s “failed” business, Available at: https://www.smartcompany.com.au/business-advice/four-lessons-showpo-founder-jane-lus-failed-business/ (Accessed: 6th September 2019).
Powell, D. (2018) How Showpo’s Jane Lu took radical action to get her $30 million fashion retailer out of a “rut”, Available at: https://www.smartcompany.com.au/industries/retail/how-showpo-jane-lu-took-radical-action-to-get-her-30-million-fashion-retailer-out-of-a-rut/ (Accessed: 6th September 2019).