How TB International expanded their DTC business across 22 markets with Zalando Logistics Solutions
How TB International expanded their DTC business across 22 markets with Zalando Logistics Solutions
Partners in Growth
“We never stand still” is how TBInternational often describes themselves. And they aren’t exaggerating. The fashion group is expanding at lightning speed by exploring new business models — enabled with a made-to-measure mix of Zalando Logistics’ fulfillment and returns solutions.
Today, TBInt runs a thriving Direct-to-Consumer (DTC) business via Zalando’s Partner Program, supported by Zalando Logistics’ pan-European fulfillment network. Meanwhile, their customers enjoy maximum convenience through locally relevant delivery and return options, and an overall more consistent customer experience, even through the peak seasons.
Big Moves, Big Margins
In 2020, after having operated mainly via wholesale, TBInt decided to switch to a DTC model. With such a major transition, Zalando’s expertise in fashion logistics proved to be essential. “We were very much aware of the operational challenges we had in the past, and as wholesale and DTC have completely different processes when it comes to logistics, we were really happy to utilize Zalando Logistics Solutions, benefit from Zalando’s wide network, grow our assortment, and contribute to a more sustainable shipping solution enabled through parcel-sharing between brands,” says Johannes von-Roth Bandick, Chief Digital Officer at TBInt.
With Zalando Fulfillment Solutions (ZFS), TBInt was able to launch their DTC business across 22 markets without having to sign separate contracts with last-mile carriers in each of them. Instead, they were able to unlock all relevant local carriers through a single logistics contract, allowing for easy expansion.
After a successful launch with ZFS, TBInt made full use of their flexible contract set-up, choosing to, in addition, enable Zalando Returns Solutions Plus (ZRS Plus) for items fulfilled via drop-shipping. With ZRS Plus, customer returns are sent back to Zalando, who processes and fulfills them upon the next customer order. This proved to be the optimal set-up for TBInt, as returns — the biggest challenge businesses face in the fashion industry — were taken off their plate, giving them more time to focus on running, steering, and growing their business.
The Keys to Growth
Learning is a key element to growth and it comes in all forms, from working with experts to trial-and-error to analyzing data and responding to it. When it comes to building a successful business, both TBInt and Zalando believe deeply in the power of analytics. “We focus on data and get a lot of insight from zDirect,” says Johannes. For them, success can be found in using data to steer your business, optimize your pricing, build your assortment strategy, and determine which markets to prioritize in your expansion plans.
But growth also takes time and flexibility. It doesn’t happen overnight and TBInt knows all about the determination and adaptability needed to succeed. “When we launched ZFS, we were in 15 markets. Now, we sell in 22 markets. We initially struggled with our drop-shipping set-up for non-ZFS stock, but ZRS Plus proved to be the perfect solution, so we’ve adjusted. We keep on learning while doing marketplace business and we bring it into our logistics.”
Building a business means building relationships and collaborations that foster growth. It means relying on experts and becoming experts. And for TBInt, their close partnership with Zalando Logistics Solutions proved to be key to unlocking the evolution of their DTC business. “Simply put: we can now do more successful business than before” - Johannes ends our talk.