Since its inception in 2008, Zalando has demonstrated a meteoric rise to fashion e-tailer fame, indicating the vast potential of e-commerce.
Selling over 2,000 brands in 17 European countries, the e-tailer has set its sights on doubling by 2020. Zalando has a stronghold in its homeland of Germany, with almost 17 million site visits a month. This falls to 10 million and 4 million in France and the UK, respectively, where the e-tailer must compete with native retailers La Redoute and ASOS.
An impressive 72% of mid-market and contemporary brands in Gartner L2’s European fashion report have turned to Zalando’s German site to sell their wares. Luxury brands have adopted a more tepid approach. While 44% distribute on the platform in Germany, product assortments are limited, with half restricting available products to sunglasses, watches, jewelry, and diffusion lines.
Digital innovation is a key tenet of Zalando’s operations and its method of putting brands in the driving seat with their own brand shops sets it apart from its peers. Brands can build country-specific concessions within Zalando’s website, creating space for branded merchandising content to boost sales through the platform.
Zalando doesn’t intend to stop there. Already this year it has expanded into two new markets—Ireland and Czech Republic—and launched its beauty category in March. E-tailers, watch out!