A holistic strategy for a connected fashion world

At Zalando, we aim to be the starting point for fashion, connecting all players in the industry and catering to their requirements with our platform strategy at the center.

A changing industry

The European fashion market is one of the largest and most attractive global consumer markets. The industry is experiencing radical change, due to digitization. New technologies connect all participants in the fashion ecosystem – customers, brands, retailers, manufacturers, stylists, content providers such as influencers, logistics companies or service providers – and open new channels for consuming, producing and doing business. We continue to see major potential for growth in this market.

Growth and innovation – our platform strategy

We are convinced that the best way for us to achieve growth - while continuing to drive forward digitization in the industry - is with a platform-based business model. 
We focus on the requirements of the fashion industry as a whole. Thus, we can create unique and compelling fashion experiences for our customers and find specific solutions for brand partners. We offer locally tailored solutions to our customers in our 25 European markets, enabling fashion brands and fashion retailers to access the European fashion market. Our in-depth knowledge of local markets is one of our competitive advantages.

The three main elements of our platform strategy

We are significantly investing in three areas that are essential for the success of our platform strategy: customers, partners and infrastructure.

Our customers

Customer focus is a given for us. We want to offer our customers the most comprehensive range of current trends – with maximum availability. At the same time, we want to inspire through high levels of personalization; creating a suitable choice for every customer. Finally, we invest in supplier, payment and customer service for a seamless experience.

Our brand partners

Our brand partners profit from our customer base by becoming part of our platform structure – a fantastic business opportunity. Via our partner program, brands can integrate their stock directly on the Zalando platform. The resulting broader assortment and higher product availability help extend Zalando’s customer base – which, in turn, draws even more brands to Zalando. Via our Connected Retail program, we are connecting on- and offline retail. With this program, physical retailers are able to serve millions of Zalando's online customers. Zalando’s platform provides digital and infrastructure services, for example, analytics, advertising and logistics. We are confident that these services will trigger a self-amplifying growth dynamic, further unfolding the potential of Zalando.

Our infrastructure

The foundation for our service offering to customers and partners alike are our investments in infrastructure. Internally developed technology solutions are the backbone of Zalando and drive all our processes. In-house developed analytical tools for data evaluation and the insights gained are of great strategic importance. Zalando successfully coordinates its logistics and continuously improves the customer experience by expanding its scalable logistics infrastructure. Our expertise in warehousing, delivery and customer service processes, along with content creation, remains fundamental to our retail business.

Outlook – increase the market share, deepen customer relationships

Our objective for the coming years is to continue expanding our market share and leveraging growth dynamics by combining our customer base with networked inventories. Our focus on growth provides us with the opportunity to leverage economies of scale. Against the backdrop of the current rapid technological development in the fashion industry, our strategy will continue to develop over the coming years too. We are confident that fashion and lifestyle products will remain a way to express one’s personality. Inspiration, discovering new products, and personalisation are customer requirements to focus on in the long term.

Our business areas – multiple touchpoints and opportunities

Zalando operates in various business areas to reach the goals of our platform strategy and our aim to connect all players in the fashion industry. We offer customers multiple touchpoints to engage with the fashion world – from online retail, private labels, and a shopping club to personalized style advice. In doing so, Zalando plays its strengths in the digital arena. Part of our platform strategy is to explore and enter new business areas. For example, we grant third parties access to our logistics network, enable brands to sell their goods in the Fashion Store or advise brands on advertising and marketing.

The fashion store  

In its online shops, Zalando offers customers an extensive range of fashion items, including shoes, clothing and accessories – all with free delivery and returns. Zalando tailors its online shops to local customers’ needs in 25 different European markets. The range features renowned global brands and local ones alike. In addition, customers can find Zalando's private labels, designed in-house. In total, Zalando works with more than 7,000 international brands.

Offprice – Zalando Outlets and the shopping club Lounge by Zalando

Zalando's private labels – completing the selection

As a multi brand fashion company, we have been developing international fashion brands in the heart of Berlin since 2010. Zalando’s private label assortment includes shoes, clothing and accessories for women, men and children – all of which fill the gaps in the range of the Zalando Fashion Store. With six private labels, Zalando creates products covering the entire value chain – from design to sales.

New business fields

In addition to its three business areas, fashion store, off-price and private labels, Zalando also operates in the development of various emerging business fields.

Zalando Fulfilment Solutions

Zalando makes its logistics capabilities available to external partners, so they don’t need to be concerned with infrastructure issues but can concentrate fully on their core competence in the fashion business.

Zalando Marketing Services

Over the past years, developing and optimizing its marketing skills was one of the main objectives for Zalando to invest in. Our expertise and scope in this field is bundled in Zalando Marketing Services, which offer personalized marketing solutions for brand partners.

Zalando Partner Services

Zalando helps other players such as brands, retailers and manufacturers in the industry to be successful in the digital world. We connect warehouse stocks with multiple retailers, digitize processes involved in fashion wholesale, and integrate physical retail into our Zalando platform, to name only three examples.