Do you shop at Zalando? The retailer sells branded shoes and clothing to 15 European countries, and is the continent’s largest online fashion retailer. After a well-documented struggle last year, the online powerhouse is back on top: just last month, it reported its first full-year profit, leading to a sale of 17.9 million shares that are now trading 13 percent higher than their listing price. The share sale will increase liquidity in the stock, and boost chances for the Berlin-based retailer to join Germany’s MDAX index. But what’s next for Amazon Fashion’s European cousin?
It might be hard to believe now that Zalando sells 1500 brands to more than 13.5 million customers, but it was born as a start-up selling flip-flops. As the company grew bigger, comparisons have been consistently made with Asos. However, While both are Europe-based and sell other brands, the similarities probably end there – Zalando’s done everything bigger, including having twice as many customers, nearly twice as many brands and nearly three times as many products. But is bigger always necessarily better?
Zalando went public in October 2014 last year, joining other fashion retailers in making the move to the stock exchange in recent times (see: Boohoo, and soon, after merging with Yoox, Net-a-Porter). So what is it about Zalando that means it has come to turn a profit? Other than offering a huge range of products for a portion of online shoppers who want a one-stop shop for everything, the retailer also has an extremely highly rated shopping app in their roster (an unusual feat, even in today’s online-first retail world). Promising to make the experience of buying fashion even easier, the app includes neat features like street style photo inspiration, a barcode scanner to compare prices with items on high street, and an in-app parcel tracker.
To hear more from Zalando, be sure to attend our London Summit – on May 21, the retailer’s Head of Mobile Apps Christian Drehkopf will be in conversation with Jemima Kiss (The Guardian) and Daniel Murray (Grabble) to discuss how mobile strategy could be fashion’s big gamechanger.
Reported by Claire Healy