Zalando's Growth Spurred by New Ecosystem Strategy

Zalando, the German online shopping giant, has implemented a successful new business strategy centered around creating a pan-European ecosystem for fashion and lifestyle e-commerce. Despite initial struggles post-pandemic, this strategic pivot has spurred a return to growth, with revenues reaching 10.57 billion euros in 2024, marking a 4.2% increase. Further, Zalando is closing a major acquisition of About You, another German fashion platform, for over 1 billion euros. This acquisition is expected to be finalized later in 2024, reinforcing Zalando's market position. Key elements contributing to Zalando's turnaround include a focus on logistics and software, increased activities in business-to-consumer and business-to-business, and collaboration with high-end brands. Zalando also emphasized content-driven consumer engagement through features such as AI-shopping assistants and lifestyle-related stories. Going forward, the company anticipates further growth, projecting a 4-9% increase in revenue and GMV in 2025.