A site that sells clothes (and initially only shoes) is probably nothing new or revolutionary. There are undoubtedly millions of them around the world. As a result of globalization, all sites can become competitors, impacting sales, attractiveness and customer loyalty. 

So it's all the more remarkable to take a closer look at Zalando, which in a very short space of time, thanks to an ingenious (and slightly crazy) concept, has been able to address all these issues and become one of Europe's most promising unicorns. Focus on Zalando. 

The idea that changed everything 

David Schneider and Robert Gentz are two business school graduates. They want to set up their own business with an idea that may not be innovative in the original sense of the word, but is certainly crazy: convincing customers that you can buy shoes without trying them on (because the purchase is made online, without a physical store). 

Working from their Berlin apartment in 2008, they set out to do everything they could to help Internet users overcome their buying barriers: no delivery charges, free returns in the event of a problem, and even 100-day returns.

 The site was called Ifansho at the time, but adopted its definitive name less than a year later, when success began to take hold. 

In the meantime, the company, started (like many others) with little financial means, received support from the Rocket Internet business incubator. Within a year of the company's foundation, sales had spread beyond Germany to Austria. The UK, Italy and Switzerland followed, soon to be imitated by other European countries. 

The development and consecration of Zalando

Who would take the risk of ordering shoes that are too small, too big, or too uncomfortable? And yet, Zalando's success comes very quickly, because the site is aggressive and communicates a lot, including on television. 

The platform hears about its extensive range, low prices and, above all, the possibility of changing, free of charge, if you've made a mistake. That's all it took to convince the Germans, and soon the rest of Europe too. 

The shoes were the riskiest part, and the test was won hands down. Why stop there? From 2009 onwards, the range was expanded to include clothing sales, thus opening up to the world of fashion in general. In 2011, sales exceeded 500 million euros, rising to 1.15 billion the following year. 

 Over the years, this was no longer enough. Shoes and clothing that were clearly aimed at the female public became mixed, and then extended to children. 

Accessories and cosmetics are added to the list, for a catalog that will soon include 150,000 items and 150 brands. Zalando has the privilege of offering items from luxury brands such as Versace and Vivienne Westwood, as well as exclusive brands to attract even more customers (Kiomi, Zign, XXIV Carats Paris...). Online private sales with discounts of up to 75%, the perpetual search for new fashion niches - nothing seems to stop the machine. 

A parody of an effective TV game show in 2012, well-known models (including Clara Delevingne), in vitamin-packed TV spots in tune with the times, Zalando has fashion fans in a frenzy in 2018 with collections of sports brands. The platform always finds a second wind in its race for performance, as it has the intelligence to quickly lean on social networks as well as TV or even urban billboards to attract the attention of prospects and build customer loyalty. 

New technologies and mobile applications are its weapons for standing out from the competition and gaining market share throughout Europe. The strategy is clearly paying off. 

Is the web the only place to discover Zalando products? With ephemeral stores like the one in Frankfurt in 2015, the brand wants to make it clear that it can play on all fronts. 

Is fashion for the wealthy? That would be to misunderstand Zalando, which aims to democratize the sale of clothing, including luxury items. Is this why it wanted to own Bread and Butter, which organizes Berlin Fashion Week every year? In any case, the event seemed to be reserved for an elite, and Zalando is not happy about this. The site intends to open it up to the general public, starting in 2016.

Now present in 23 European markets, Zalando is a German unicorn - a start-up with a valuation in excess of 1 billion euros in less than 10 years of existence. 

Zalando: key information 

Zalando founding date

It all began in 2008, with almost immediate results, because the following year, sales already included Austria, as well as Germany. In 2010, the French market is opened, as is that of the Netherlands. 

Number of employees to date

Already in 2015, less than 7 years after its creation, faced with its colossal success, the creators were already announcing the creation of 2,000 jobs. By 2018, the number had risen to almost 16,000. 

Sales in 2022

Sales for 2022 are not yet known, but those for 2021 exceeded 10 billion euros, while consumers, restrained by the confines of the Covid-19 in 2020, have returned to physical stores; no longer constrained to online purchases alone. This is reassuring for the platform. A record to beat this year? All bets are off.

 

A possible IPO?

Going public is a sure sign of success for a company. Did the founders of Zalando think, when they put the first pages of their website online, that their brand would be listed on the stock exchange in 2014? Probably not. Now valued at 5.3 billion euros, the success is colossal.

Zalando's development objectives

Shoes can be bought online without fitting with Zalando, and the same goes for clothing. Even if returns are free, the company needs to ensure that customers are satisfied from the very first order, to keep costs down. No problem in 2020 with virtual fitting. Another start-up had the idea (Fision): Zalando bought it. It's as simple as that. 

Is a country, like France, identified as an important market? Zalando does not hesitate to open logistics sites, to respond more quickly to orders and therefore deliveries. The same goes for Poland. With such an ability to react, it's easy to understand the undeniable success of this unicorn, now listed on the stock market....

Scalability

It's hard to beat the success of Zalando, which has grown from an online shoe retailer into one of the world's best-known fashion sites. Ephemeral boutiques to capture the attention of a new clientele, desacralization of fashion week: the founders rely on their good ideas to develop their structure again and again. 

The start-up's most striking maxim or quote

"Are you ready ? " Despite its German origins, start-up Zalando has an English slogan. There's no doubt that, right from the start, the company was determined to open up internationally.

A slogan that has certainly brought luck to the two founders, because after 25 years of existence, this little site, created in a Berlin apartment living room, is now world-renowned. 

 

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