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Google Gets Fashion
Online shopping for women's fashions got a whole lot more interesting on November 17, when Google (Nasdaq:GOOG) released the beta version of Boutiques.com, a search engine that allows you to create your own boutique with products matched to your personal style. It seems like a big change for Google, but one that should positively affect both the company and retail fashion. We'll look at why this is so meaningful and who benefits most from this radical departure.
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A Small Price To Pay
Google is thought to have paid upwards of $100 million in August for the visual search engine Like.com, which isn't a whole lot when you consider it paid 16 times this amount for YouTube. When it acquired the video sharing site back in 2006, questions were raised about its ability to turn YouTube into a moneymaker. No such questions appear imminent from its latest acquisition. While I'm not a fashion expert on women's or men's clothing, the brief visit I made to Boutiques.com tells me all I need to know. This is going to be big for Google's product search business.
By simply answering a few questions about my wife's style - or at least what I think her style is - the site told me she was "casual chic." With a few more questions that she'll have to answer herself, a totally personalized selection of clothing would be available in her very own boutique. Google is paid when she clicks through to any of the online merchants. It sure seems like they've created a satisfying and convenient way to shop. Time will tell, but I'd say they're off to a very good start.
One Convenient Location
While it's true that many women love to shop, it's equally true that many do not, because either they don't have the time or they just don't care for the crowds. Online shopping caters to this group and the easier companies make it to skip the trip to the mall altogether, the more successful their e-commerce programs will be. Google seems to understand this and the company is conveniently in the middle of this online dance. Consumers determine what brands appear on the pages of Boutique.com, and that's a beautiful thing.
Fashion Wins
Once I knew my wife's style was casual chic, the website suggested several boutiques that fit her style. The one I happened to checkout had products from Gap (NYSE:GPS), Dillard's (NYSE:DDS), Bluefly (Nasdaq:BFLY), Pacific Sunwear (Nasdaq:PSUN) and many others. Each of the product pictures had alternatives that were visually similar. While I'm sure there are other sites that do this to one extent or another, Google has the financial might to do to it better than most. This has to be a good thing for any fashion brand or retailer seeking online sales. Frankly, in my opinion, if you're a retailer with online revenues less than 10% of your overall business, you're failing miserably. Boutiques.com gives retailers another quiver in their marketing arsenal. Investors who own retail stocks whose products aren't showing up at Google's beta website might want to ask themselves why.
Bottom Line
While it's clear Boutiques.com is totally geared to women, there's no reason why a second version couldn't be offered to men as well. My guess is they will get all the kinks out first and then, once the business model is proven profitable, they'll roll out one for men. After all, who hates shopping in person more than us men? (For a related reading, check out 4 Game-Changing Financial Technologies.)
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A Small Price To Pay
Google is thought to have paid upwards of $100 million in August for the visual search engine Like.com, which isn't a whole lot when you consider it paid 16 times this amount for YouTube. When it acquired the video sharing site back in 2006, questions were raised about its ability to turn YouTube into a moneymaker. No such questions appear imminent from its latest acquisition. While I'm not a fashion expert on women's or men's clothing, the brief visit I made to Boutiques.com tells me all I need to know. This is going to be big for Google's product search business.
By simply answering a few questions about my wife's style - or at least what I think her style is - the site told me she was "casual chic." With a few more questions that she'll have to answer herself, a totally personalized selection of clothing would be available in her very own boutique. Google is paid when she clicks through to any of the online merchants. It sure seems like they've created a satisfying and convenient way to shop. Time will tell, but I'd say they're off to a very good start.
While it's true that many women love to shop, it's equally true that many do not, because either they don't have the time or they just don't care for the crowds. Online shopping caters to this group and the easier companies make it to skip the trip to the mall altogether, the more successful their e-commerce programs will be. Google seems to understand this and the company is conveniently in the middle of this online dance. Consumers determine what brands appear on the pages of Boutique.com, and that's a beautiful thing.
Fashion Wins
Once I knew my wife's style was casual chic, the website suggested several boutiques that fit her style. The one I happened to checkout had products from Gap (NYSE:GPS), Dillard's (NYSE:DDS), Bluefly (Nasdaq:BFLY), Pacific Sunwear (Nasdaq:PSUN) and many others. Each of the product pictures had alternatives that were visually similar. While I'm sure there are other sites that do this to one extent or another, Google has the financial might to do to it better than most. This has to be a good thing for any fashion brand or retailer seeking online sales. Frankly, in my opinion, if you're a retailer with online revenues less than 10% of your overall business, you're failing miserably. Boutiques.com gives retailers another quiver in their marketing arsenal. Investors who own retail stocks whose products aren't showing up at Google's beta website might want to ask themselves why.
Bottom Line
While it's clear Boutiques.com is totally geared to women, there's no reason why a second version couldn't be offered to men as well. My guess is they will get all the kinks out first and then, once the business model is proven profitable, they'll roll out one for men. After all, who hates shopping in person more than us men? (For a related reading, check out 4 Game-Changing Financial Technologies.)
Use the Investopedia Stock Simulator to trade the stocks mentioned in this stock analysis, risk free!
by
Will Ashworth
Will Ashworth lives and works in Toronto, Canada. He's worked in and around the financial services industry for much of his adult life. He loves investing and is passionate about helping others learn how to put their money to work.
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