BostInnovation has had a bit of an overdose of technology and social media startups, so we wanted to take a look into a different sector of the Internet, online shopping. In 2009 $29.1B was spent during the holiday season alone. In June 2009 Biz Report reported that the average American spends four hours a day online shopping. How does this relate to Boston and the startup community? One word: Karmaloop.

Greg Selkoe founded Karmaloop way back in 1999 when he was living in his parent’s basement. Karmaloop was established to combat what they call the “evil forces of McFashion and Abercrombie Zombies.” It’s an online reseller of exclusive brands that specialize in streetwear; clothing that is popular in urban areas and among trendy teens and college students. Headquartered on Tremont St. in Boston, it’s a small office, considering the size of the company, but the Karmaloop staff is what makes the office eclectic. Everyone who works there is in their 20s and decked out in the latest streetwear fashion.

Some might call them “hipsters,” or as Urban Dictionary defines the word, people who “listen to bands you’ve never heard of, have a hairstyle that can only be described as ‘complicated’ (most likely achieved by a minimum of one week not washing it), and are probably tattooed.” Of course the style Karmaloop’s employees sport and promote is much more than that. It’s a whole underground movement and way of identifying with the world.

They maintain the hipster culture both on and off the website. The only proof Karmaloop exists and is flourishing in Boston is their small flagship store on Newbury St. Why they’re success is still a well-kept secret evades me. According to Selkoe they’ve done $7oM in revenue. For so long we’ve credited Boston based startup, Johnny Cupcakes for mastering guerilla marketing and creating a cult-like following for their brand. I hate to disappoint the Johnny Cupcake fans out there, but Karmaloop was there first, creating hype around their brand while spending nothing on marketing and solely relying on word-of-mouth to drive interest.

Things only got easier for Karmaloop when social networking sites like Twitter caught on. Suddenly, word-of-mouth wasn’t just happening on the streets anymore; it was going viral. Karmaloop has 18,203 followers and 38,409 Facebook fans. Their customers are clearly the number one focus– Karmaloop’s Twitter and Facebook page are filled with promotions that range from discounts for referrals to contests to be a Karmaloop model.

How is Karmaloop innovative?

Karmaloop mastered the art of branding before it was the cool thing to do. Right now everyone is trying to figure out how to connect with their audience and customers, but Karmaloop found the formula a long time ago. They survived the dotcom crash and retained their loyal fans. Their most innovative move yet, was enhancing their media and entering new markets. KarmaloopTV hashes out the latest streetwear trends, sits down with hot music artists, and pokes fun at current pop culture.

Karmaloop is a startup that is not just a store or a brand; it’s a lifestyle. Any startup can follow Greg Selkoe and Karmoloop’s lead, make your company stand out; whether it’s by only hiring twenty-year-olds to work for you or adding a weekly TV show to your website. Do what Karmaloop did and is doing, and make your brand a lifestyle.

To learn more about Karmaloop, be sure to check out their website: Karmaloop.com.