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Zalando Company Aims To Grow Gain With A New Strategy

Image Source: elix Geringswald / Shutterstock

Zalando is looking ahead to a year of growth as it introduces a revamped approach by opening up its logistics operations to a wider range of participants, describing it as a fresh “pan-European ecosystem” to enhance its performance.

The major German fashion retailer anticipates that its updated ecosystem strategy will help drive growth up to 2028 following a slight dip in gross merchandise volume to €14.6 billion in 2023.

The company intends to strengthen its B2B segment by offering access to its logistics infrastructure, software, and services to facilitate ecommerce activities for brands and retailers both within and beyond the Zalando platform.

Zalando also forecasts a sales resurgence of 0% to 5% this year after a 1.9% decline to €10.1 billion in 2023.

Co-CEO of Zalando, Robert Gentz, expressed the company’s goal to reignite growth and expand margins as evidenced by its updated mid-term objectives.

“We are looking to provide our 50 million customers across Europe with enhanced quality experiences, tailored products, personalized content, and entertainment to drive growth in our B2C segment. In B2B, we plan to support our business partners on and off Zalando’s platform by leveraging our logistics infrastructure, software, and services,” Gentz added.

The online retailer envisions substantial growth in the B2B sector in the mid-term, moving towards a multi-billion-euro enterprise.

By focusing on delivering exceptional shopping experiences in fashion and lifestyle, emphasizing categories like sports, kids, and family, and offering personalized inspiration and entertainment, Zalando aims to strengthen its position in customers’ lifestyle journeys.

Co-CEO of Zalando, David Schneider, highlighted the company’s B2C strategy centered around quality, lifestyle, and inspiration that sets them apart from competitors and positions them for continued market share growth.

“We intend to enhance usability, convenience, and digital experiences for our customers while incorporating engaging content and enabling personalized interactions using our data and technology. This presents a significant opportunity to elevate customer engagement to new heights,” Schneider stated.

Zalando has faced challenges due to weakening demand post-pandemic growth surge, attributed to increased inflation impacting consumer behaviors.

Image Source: elix Geringswald / Shutterstock

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