Boohoo has remained largely unscathed by the ongoing controversies surrounding its supply chain, according to analysts.
This week The Times, which published the damning expose into working conditions at Boohoo’s suppliers that started its decent into controversy, reported that damage to its reputation has had no major impact on its business.
German banking giant Berenberg’s analyst Michael Benedict has predicted that the company will be able to maintain its “sector leading growth” thanks to its loyal following of young shoppers.
He pointed out that Boohoo’s Instagram account, which serves as an accurate metric for its favourability among young audiences, has continued to grow despite the ongoing reputational issues.
“We think there are no particular signs that the negative publicity has resulted in a meaningful decline in brand sentiment among Boohoo’s addressable customer base,” he added.
In October last year, while the scandal was still relatively fresh, GlobalData published research which found that 66.4 per cent of clothing and footwear shoppers said they were now discouraged from shopping with Boohoo.
A further 61.2 per cent said they had also been discouraged from shopping with its fast fashion rivals like Missguided and Primark following the allegations.
These contrasting studies suggest a significant divergence between shoppers’ intentions and shoppers’ actions meaning that customers still buying clothes from Boohoo despite being morally against its practices.