How we are managing the situation as a company
The current situation around Coronavirus is continuing to evolve quickly. Over the last weeks, the virus has gone from being something abstract and distant to having a very concrete and tangible impact on many of us in the fashion industry. That is why now more than ever, it is important that we unite to find joint solutions. Zalando has a clear strategy and a clear direction. While we expect that the current crisis will have a negative impact in the foreseeable future, we do not expect it to change our longer term trajectory. Our vision remains consistent and relevant going forward: to build the starting point for fashion in Europe!
Zalando was founded in 2008 right at the beginning of a financial crisis. Our company culture was defined in a challenging environment where frugality and focus were essential. We learned early that by steering decisively in challenging situations, we can not only prevail but we can thrive together.
In times like these, our most important priority is to protect the health and safety of all our employees. Furthermore, we remain committed to our values of customer centricity and being a strong partner to our 2000+ fashion brands and retailers. You can read the Letter from the Management Board, which was sent out on March 30 to our stakeholders, which summarizes how we are addressing the Coronavirus situation currently as a company, and continue scrolling to read about how we are supporting our fashion partners in times of the Coronavirus.
How we can help you
As a partner to over 2000 fashion brands and retailers, we are implementing a number of measures to help our partners manage the impact Coronavirus has had on their businesses. For fashion, now is the time to go online as we see customer demand coming back after a tough March. Our direct-to-consumer model, Partner Program (PP), can help you reanimate your business with:
#1 Quick access to demand
You can quickly accelerate your digital sales, there is no limit to the number of SKUs you upload, and you can access all 17 markets Zalando is active in (Czech Republic and Ireland only in combination with Zalando Fulfillment Solutions).
For new partners, Direct Integration allows you to connect to our platform in just 12 days (depending on your brands’ readiness). This removes up-front expenses.
#2 Faster cash
We will support you with cash liquidity by increasing the frequency of payouts: during all of Q2, all small and mid-size Partner Program partners who request it will receive their revenues every 14 days.
#3 Dedicated sales event & marketing boost
To release overstock pressure, we will conduct a dedicated sales event in relevant markets in the beginning of May for partners who sell directly to customers via the Partner Program. To raise visibility during this event, we will also match every euro spent by Partner Program partners on Zalando Marketing Services (ZMS).
#4 €5M activation fund for small & midsize partners
Until the end of 2020, we will offer up to 5 million Euro in free onsite visibility to small to midsize partners in the Partner Program. Both existing as well as new partners that signed up before August 31 are eligible for this fund. We believe in diversity in fashion, and the Partner Program is the best way for smaller brands to get their brand in front of millions of customers.
In addition, we also have further ways in which we can support you, for example, to clear overstock via the Zalando Lounge. As we understand no size fits all, we are more than happy to design a customized package based on your specific business needs. Click here for the full details or if you already know exactly how you want to partner with us, get in touch!
- April 23: "Unlocking Opportunities in the Digital Fashion Space" – A recap of our first ever digital event, in which Boris Ewenstein spoke to experts from McKinsey & Company about how the Coronavirus continues to impact the fashion industry and what we can expect for the future.
- April 30: "Overstock Management" – A recap of the second event in our Stronger Together webinar series, where we dived deeper into the various opportunities for partners to clear overstock, whether it be from warehouses or stores.
- May 14: "Marketing in times of Coronavirus" – We wrapped up our Stronger Together Webinar Series with a discussion around how to activate and delight customers during this time.