Zalando (ZLNDY) has announced that it is altering its strategy to create the leading fashion and lifestyle e-commerce ecosystem in Europe, focusing on two growth sectors: Business-to-consumer (B2C) and Business-to-business (B2B). The company stated that this shift to an ecosystem model is a major step away from their current platform strategy.
Robert Gentz, co-CEO of Zalando, shared, "Our objective in the B2C sector is to enhance the quality of experiences, products, and personalized content we offer our 50 million European customers, focusing on their lifestyle and providing them with inspiration and entertainment. In the B2B sector, our aim is to bolster the performance of our partners and merchants both within and beyond Zalando by utilizing our exceptional logistics infrastructure, software, and services."
In addition to the B2C segment, starting in 2024, the company will also report data for the B2B sector. With this dual approach, Zalando envisions cornering around 15 percent of the European fashion market, valued at 450 billion euros, in the long run. The company aims to achieve a compound annual growth rate of 5-10% for both gross merchandise volume and revenue over the next half-decade.
