Karmaloop

Karmaloop is a multi-platform web retailer, community style and media company specializing in streetwear ecommerce.^[1] The Karmaloop family of sites includes online retailer Karmaloop, internet television station KarmaloopTV,^[2] ladies-only site MissKL,^[3] flash-sale site PLNDR,^[4] online skateboard retailer Brick Harbor,^[5] and independent marketplace Kazbah.^[6] As of August 2013, Karmaloop.com receives 4.5 million unique visitors a month, was ranked the 1,980th most visited website in the U.S.^[7]

History

In 2000 Greg Selkoe founded a small online retailer in his parents' basement in Jamaica Plain, a neighborhood of Boston, Massachusetts. Selkoe grew up following break dancing, graffiti art, and fashion, which influenced his decision to focus his business on urban style and streetwear.^[8] He was inspired to initiate the venture while helping to garner advertising for a friend's DJ-culture zine in 1999. Selkoe realized that streetwear brands were only available in a few, select cities. His initial concept for Karmaloop was to provide universal reach for hard-to-find boutique streetwear brands:^[6]

We noticed these emerging underground clothing lines. But most towns in America had only Old Navy, Gap, or Banana Republic stores. At the same time, a lot of celebrities, skaters, heroes of the culture like [hip-hop artists] Common and Mos Def were wearing these brands—they had terrific brand recognition. So I called them up and said, ‘You must be doing great—I’d like you to buy an ad in this DJ zine.’ They said, ‘We don’t have any money.’ So I would ask, ‘How can that be? With all these celebrities wearing your stuff?’ And the answer was, ‘Those people all live in New York or L.A. If you don’t live there, you can’t get this stuff.’ That was the genesis of the idea ... there were no resellers so you just couldn’t get hold of these brands. But the Internet provides universal reach ... Catalogs have existed for 100 years; an Internet catalog is more dynamic, more exciting, and more efficient.^[9]

The Karmaloop flagship brick and mortar store was launched in 2005 on Boston’s Newbury Street.^[10][11][12] The store carried products available on the website as well as limited edition items, and was often used as a testing ground for new products.^[13][14] In a 2010 interview, Selkoe revealed that the store "never made a penny," and in 2011 it closed.^[8] In the meantime Karmaloop's online presence has grown to include Karmaloop.com, MissKL.com, PLNDR.com, BrickHarbor.com, and Kazbah.com. It also launched KarmaloopTV.com, an Internet television station in collaboration with music producer Pharrell Williams and former AMC president Katie McEnroe.^[15]

Though the physical store closed, Selkoe expressed a commitment to Boston in an interview with Inc.com: "I wanted to stay in Boston. It's my hometown; plus, there are a lot of really smart kids coming out of the universities here, so we grab them before they go anywhere else."^[16]

In 2015, Karmaloop filed for Chapter 11 bankruptcy protection while pursuing a debt restructuring and sale of the business, as high-profile potential buyers including Kanye West were said to be circling.^[17] Karmaloop's troubles were in part blamed on over-eager expansion. In particular the sites Monark Box, Miss KL and Boylston Trading did not live up to expectations.^[18]

Involvement with social causes

Following the Boston Marathon bombings in April 2013, Karmaloop and other local retailers produced special Boston-themed merchandise, the proceeds of which were donated to the families of the victims.^[19] It released "Boston Strong" t-shrits through its private label KLP and teamed up with Neff headwear to create Forever Boston tank tops.

During the 2008 presidential election Karmaloop registered thousands of voters in conjunction with Declare Yourself. Karmaloop also co-created a series of videos that were shown on KarmaloopTV for the “Why Wait?” campaign that encouraged young voters to vote early in states that allowed it. Microsoft, Dim Mak Records, design firm House Industries, and film director Jason Pollock were campaign partners.

Marketing profile

Karmaloop employs the term "Verge Culture" to define its target lifestyle and demographic: creative, early adopting digital natives who follow trends in music, fashion, art, technology, and action sports.^[13][20]

As of 2013, Karmaloop is a vendor for over 500 brands,^[21] including its many private label clothing brands including Amongst Friends, Advocate, KLP, Orisue, Pilot Licensing, Society Original Products, Sons of Liberty, Spool & Thread, and VGB.

Karmaloop's opt-in email list is distributed to over 950,000 people.^[22] The company also utilizes a 100,000-member global affiliate marketing program^[6] to drive online sales and build brand loyalty.^[13]

In 2011 it grew 81% and generated $130 million in revenue.^[23]

Livestream events

Karmaloop utilizes new media extensively in its promotion to reach its technically savvy and trendy target audience. Since 2012 the company as organized several interactive Livestream events, starting with a Cyber Monday promotion, during which time users can call in to win prizes or engage through social media like Twitter or Instagram.^[24] Most events, such as its recurring "Freakathon" variety program, feature musical performances, DJs, and celebrity guests. Participants have included Travie McCoy, Clinton Sparks, Tokimonsta, Andy Milonakis, Brooke Candy, Riff Raff, Wynter Gordon, Flatbush Zombies, VH1's Black Ink Crew, and Bun B.^[25][26][27]

References