How Zalando supports the European economy
How Zalando supports the European economy
Zalando commissioned the international research and advisory firm Oxford Economics to produce an assessment of the company’s direct and indirect economic impact. The report, “The Economic Impact of Zalando in Europe” highlights Zalando's significant contributions to the European economy and society in 2023.
Zalando commissioned the international research and advisory firm Oxford Economics to produce an assessment of the company’s direct and indirect economic impact. The report, “The Economic Impact of Zalando in Europe” highlights Zalando's significant contributions to the European economy and society in 2023.
Zalando was founded in 2008 as an online shoe retailer. More than 16 years later, the company has grown a customer base of more than 50 million, reached €10.1 billion in revenue and operates successfully across 25 European countries. Headquartered in Berlin, Zalando has recently rolled out its updated group strategy focusing on its B2C and B2B growth vectors. The company is now on the path of building a pan-european ecosystem for fashion and lifestyle e-commerce.
The study showcases how Zalando is a European and digital entrepreneurial success story with high impacts in regional economic clusters and local communities.
Zalando’s economic impact in Europe
In 2023, Zalando supported a total gross value added (GVA) of €9,521.6 million in Europe. Almost 60% of this effect was driven by the company’s supply chain. Since Zalando acts as a fashion retail platform, the company spent a significant amount on procuring fashion stocks, as well as non-merchandise products like IT services needed for supporting the functionality of the fashion store and app. The European countries benefiting most from the economic activity stimulated by Zalando’s supply chain include Germany, the Netherlands, Poland, Italy, and France.
Furthermore, wage payments by Zalando and its suppliers stimulated 25% of the total gross value added (induced effect). With €1,500.4 million, the direct effect accounted for 16% of Zalando’s total economic impact in terms of gross value added in Europe.
Regional success stories powered by Zalando
The report highlights Zalando’s role for brands and local economies. Over 97% of the company's procurement is from Europe, with Germany, the Netherlands, and Italy being major beneficiaries. Smaller businesses also profit from Zalando’s logistics and fulfilment capabilities; such as Kazar, a Polish retailer of shoes and accessories, operating in the region since 1990.
Success stories like Kazar underscore the company’s transformative impact on smaller businesses.
The commitment to innovation and local relevance, combined with a supply chain tailored to fashion and lifestyle e-commerce, have established Zalando as a key economic player in Europe, stimulating growth across diverse sectors while unlocking a highly diverse market for local players.
Zalando’s homebase: Major economic impact in Germany
In 2023, Zalando supported 113,000 jobs across the continent, demonstrating its extensive economic footprint. In Germany alone, Zalando's home market, the company contributed €4.81 billion to GDP and supported 53,000 jobs.
15,000 of these jobs were direct employees of Zalando. Furthermore, 27,000 jobs were supported by Zalando through its supply chain with German suppliers and 11,000 were supported via the induced effect, representing economic activities in typical consumer sectors that are triggered by wage payments of Zalando and its suppliers.
Strong local impact: Zalando’s logistics centre in Erfurt
Zalando operates its first own large-scale logistic centre in the city of Erfurt, Thuringia. There, Zalando contributed a total gross value added of €144 million to the local GDP. The direct contribution accounted for most of the total impact with €119.5 million. A further €6.8 million in gross value added was stimulated through the company’s supply chain (indirect effect). Wage payments by Zalando and their suppliers in Erfurt supported the remaining €17.6 million in gross value added, stimulated through spending in the consumer economy (induced effect).
We feel encouraged by the results of the study conducted by Oxford Economics. We will continue on our path and create value for customers, brands, employees and the communities we operate in.
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About Zalando
Founded in Berlin in 2008, Zalando is Europe’s leading online multi-brand fashion destination. We are building a pan-European ecosystem for fashion and lifestyle e-commerce, along two growth vectors: Business-to-Consumer (B2C) and Business-to-Business (B2B). In B2C, we provide an inspiring, high-quality multi-brand shopping experience for fashion and lifestyle products to more than 50 million active customers across 25 markets. In B2B, we leverage our logistics infrastructure, software, and service capabilities to support brands and retailers in managing and scaling their entire e-commerce business, both on and off the Zalando platform. Through our ecosystem vision, Zalando aims to enable positive change in the fashion and lifestyle industry.
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