Zalando’s “Holy Grail”: Where Inspiration Meets E-Commerce
“What made us successful in the past will make us successful in the future.” With these words, Co-CEO Robert Gentz introduced Zalando’s new business strategy. Alongside its 2023 financial results, the company unveiled ambitious plans for 2024, guided by the motto “Double Down.” The goal is to build on past successes while focusing sharply on unlocking new growth opportunities.
The strategy rests on three pillars: ‘Differentiation through Quality,’ ‘Focus on Lifestyle,’ and ‘Inspiration and Entertainment.’ It addresses key societal trends such as generational shifts and technological innovations that are reshaping the e-commerce landscape.
1. Quality Over Quantity: Differentiation Through Luxury
Zalando is placing a strong emphasis on quality to stand out from competitors. This shift is particularly evident in its focus on expanding the luxury segment. “Customer behavior has shifted—from wanting ‘more’ to wanting ‘better,’” explains Lena-Sophie Röper, Director of Designer & Luxury.
In 2023, Zalando streamlined its brand portfolio, prioritizing high-end labels. The company is creating a premium shopping experience through its digital “luxury floor.” Features like the ‘Product Spotlight’ and ‘Editor’s Note’ enable luxury brands to showcase their products more effectively on the platform.
2. Lifestyle: Everything on One Platform
The second pillar of Zalando’s strategy focuses on meeting all lifestyle needs of its customers. This isn’t about broadening the product range indiscriminately but investing strategically in categories like sportswear and children’s fashion.
“We want our customers to find everything they need for their lifestyle on one platform,” says Co-CEO David Schneider. This strategy aims to position Zalando as a comprehensive lifestyle provider while maintaining its core expertise in fashion.
3. Inspiration and Entertainment: Making Shopping an Experience
The third pillar emphasizes inspiration and entertainment, with a strong focus on video content and interactive formats. Recognizing the popularity of platforms like TikTok, Zalando is launching innovations such as live shopping shows and ‘In-Stream Shopping’ in collaboration with RTL+.
With In-Stream Shopping, viewers of the series *Gute Zeiten, schlechte Zeiten* on RTL+ can purchase outfits worn by the actors directly. “For the first time, we’re combining streaming and shopping,” says Matthias Haase, Director Content Solutions at Zalando. By pausing the video, users can click on featured products, add them to their cart, and complete the purchase via Zalando.
Technology Driving Growth
Zalando is accelerating the integration of new technologies. Its AI-powered chatbot, the Fashion Assistant, has already been tested in multiple markets and is set to expand further in 2024. The assistant now offers conversational capabilities, allowing users to interact naturally without relying on pre-set filters or keywords.
Another key feature is the ‘Trend Spotter,’ which curates trending fashion items from European style capitals like Berlin, Paris, and Copenhagen. These personalized recommendations aim to enhance the shopping experience further.
From Marketplace to Ecosystem: The Focus on ZEOS
Zalando aims to move beyond being a marketplace to establishing a comprehensive e-commerce ecosystem. The Zalando E-Commerce Operating System (ZEOS) allows brands to manage their entire online operations through a unified platform. The goal is to simplify the European market for both partners and customers.
Sustainability: A Social Responsibility Focus
While ecological sustainability was largely absent from the discussion, Zalando places emphasis on social responsibility, particularly inclusivity. Its adaptive collections for people with disabilities have been expanded to include sportswear, now available across all 25 Zalando markets.
Ambitious Growth Targets by 2028
Zalando’s strategy aims for a five to ten percent revenue growth by 2028. Co-CEO Robert Gentz expressed confidence in the company’s clear trajectory toward strong growth and improved profit margins.
With its focus on luxury, lifestyle, and technological innovation, Zalando is shaping the future of e-commerce and setting new benchmarks for inspiration and entertainment.