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Zalando’s Strategic Move for Expansion: B2B

Zalando is strategically evolving to establish itself as the premier pan-European fashion and lifestyle e-commerce ecosystem, focusing on both Business-to-Consumer (B2C) and Business-to-Business (B2B) growth avenues. This shift aims to not only capture a larger portion of the fashion and lifestyle market but also strengthen relationships with customers and partners.

In the B2C realm, Zalando is prioritizing quality to enhance the shopping experience, particularly in fashion and lifestyle. By expanding into more lifestyle offerings and making fashion discovery more engaging and enjoyable, Zalando aims to elevate its role in customers’ lifestyle journeys. Additionally, the company is enhancing personalized inspiration and entertainment features to differentiate itself further.

On the B2B front, Zalando is leveraging its logistics infrastructure, software, and services to facilitate e-commerce for brands and retailers, whether transactions occur on or off the Zalando platform. This initiative is expected to develop into a significant multi-billion-euro business in the medium term.

Zalando’s updated strategy outlines growth targets through 2028, with a compound annual growth rate of 5-10% for both Gross Merchandise Volume (GMV) and revenue. The adjusted EBIT margin target for 2028 is set at 6-8%. Ultimately, Zalando aims to cover a significant portion of the European fashion market, equivalent to 15% of its total value by 2028.

In the B2C domain, Zalando aims to become the go-to destination for quality fashion and lifestyle shopping, focusing on personalized experiences, expanded lifestyle offerings, and integrated content-commerce experiences. Meanwhile, in the B2B sector, Zalando’s ZEOS business endeavors to become a key facilitator of e-commerce transactions across Europe, providing logistical and technological support to brands and retailers.

Furthermore, Zalando’s updated strategy emphasizes its commitment to sustainability and inclusivity, aiming to enable positive change within the fashion and lifestyle industry.

Despite challenges in the online fashion retail sector, Zalando achieved its financial targets in 2023, showcasing improved profitability. Looking ahead to 2024, Zalando plans to resume growth while maintaining profitability, with expected growth in GMV, revenue, and adjusted EBIT.

Zalando’s strategic evolution aims to solidify its position as a leading force in the European fashion and lifestyle e-commerce landscape, fostering growth and innovation while prioritizing customer satisfaction and sustainability.


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