By 2025, the partner platform at Zalando should account for half of the sales volume. Local influencers make the huge offer relevant for local markets. An important focus is on Connected Retail.
More than 5000 brands
After sixteen years at Nike, Megan Maley has been responsible for the Zalando activities in Belgium, the Netherlands, the UK and Ireland for one year. A move that suits her down to the ground: “Zalando was already an important partner for Nike and I wanted to work for a tech company and be part of the future of retail. I’m not disappointed after my first year: it’s been an incredible journey so far.” On 28 April, she will be explaining Zalando’s strategy at the RetailDetail Congress in Antwerp. We asked her a few questions beforehand.
What big challenges do you see for Zalando in the Benelux after that first year?
“We still see lots of opportunities for further growth. The strategy is pretty straightforward, following two axes: on the one hand we want to bring the best fashion inspiration to Belgium, on the other hand we want to be the preferred partner for brands and retailers who want to grow internationally. In Belgium, we bring more than 5,000 brands to the consumer, both local and international brands from all over the world. The offer ranges from high-end to mass-market. Beauty is also an important part of our offering.”
“But we also want to be a partner for local brands and retailers: through our Connected Retail programme we offer them access to millions of customers in Belgium. Smaller shops can also connect their stock to our platform. That’s how we help them grow. Zalando not only brings a lot of traffic and a large customer base but also stands for authenticity in fashion in all markets where we are present.”
“Incredible ecosystem”
Do you see an evolution in the openness to collaborate? In the beginning, retailers saw Zalando mainly as a competitor?
“Certainly, the pandemic has changed a lot on that front, the attitude of brands and retailers towards platforms has evolved. Besides their own stores and webshops they see that an e-commerce platform can be an important additional channel. The fact that you have adjacencies with other brands and can enjoy the enormous traffic, makes them want to work with us as well. In webinars, we explain to our partners what opportunities there are. We have an incredible ecosystem to offer them.”
Zalando wants to make the experience as local as possible. In what way?
“We not only bring the best international brands to Belgium, but also help Belgian brands to become part of the offer. We want a relevant assortment that brings together the best of international and local brands. Brands see where they are most searched for on the Zalando platform and where they are most relevant.”
“Our local marketing teams translate that offer to the regions, with copy in both country languages. We also work with trusted local partners in each market, for delivery solutions or payment methods. In Belgium, Bancontact is a must, for example.
“Last but not least, within our Style Creator programme we work with local influencers on Instagram, YouTube or TikTok: together we create looks that we also publish on our own platform under the motto ‘get the look’. We work with around 40 influencers in Belgium, and more than 80 across the Benelux. They present the looks Belgians want to see, in recognisable settings that look familiar. Jenny Bonsenge, a Belgian dancer and influencer, cooperated with us during our Activists of Optimism campaign last summer. And you may have seen the campaign around our pre-owned range, with Bazart frontman Mathieu Terryn and his partner, photographer Marie Wynants.”
Frictionless second-hand shopping
Many retailers and brands are now betting on second-hand. Why is Zalando doing this?
“For us it is an extension of our offer: fashion is more than just new fashion. Our customers want to extend the life of the products they own. They also want to buy products that are ‘pre-loved’. Circularity is a concern, but it is also a way to save money and still stay in fashion. For us, it’s an extension of our range of new fashion. Pre-owned is still quite new to us, so it’s still a small part of our business, but it’s growing fast.”
Many second-hand platforms work according to a ‘consumer to consumer’ model. Zalando has chosen a different approach?
“At Zalando you can trade in clothes you no longer wear, and get a voucher to buy other pre-owned items or new fashion. I’m a mother of a toddler and I don’t have time to shop on all those different platforms. So the fact that I can shop new fashion and at the same time add pre-owned to the same shopping basket is great. It’s easy and frictionless. Trust is also a factor: you don’t have to wonder if the other person is trustworthy, if you will receive your purchase.”
Zalando started as a shoe retailer and later added fashion and beauty. Will the product range continue to evolve?
“That remains to be seen. There is still a lot to do in fashion and beauty: we have a strong focus on designer brands, on streetwear, sports, pre-owned and on Zalando Lounge, where you find off-priced products from 2500 brands. In beauty, we launched a partnership with Sephora in Germany last year, which we’re going to roll out to other markets as well. That will allow us to offer the most relevant assortment of prestige beauty brands to our customers.”
To 50% platform share
In Germany, Zalando also has physical stores, but not elsewhere?
“That’s definitely not the focus. We only have outlet stores and a beauty concept store in Germany. Our expertise is in the digital world. Our contribution to physical retail is the programme that connects local shops to our platform. That is how we support local entrepreneurs.”
What success stories are we seeing in the Benelux?
Orange Icons, a preferred partner of SuperDry, is a Connected Retail partner in Belgium and the Netherlands. They built their omnichannel platform in partnership with Zalando and saw a positive contribution. In Belgium, C&A, a very large retailer, has also connected several of its stores to our platform. When it comes to our Partner Program, we have also been working with LolaLiza for quite some time, and recently with Xandres, which is now expanding into Germany.”
How big are Zalando’s platform ambitions?
“We recently published our quarterly figures: in the fourth quarter of 2021, 30% of our gross merchandise volume already came from partners, with a growth of 6 percentage points. In Belgium things are going even faster: already more than a third comes from partners and the growth was 7 percentage points. The ambition is a 50/50 ratio by 2025. That seems feasible to us. We are confident about the evolution of the platform.”
Want to know more about Zalando’s approach in the Benelux? On 28 April Megan Maley is coming to Antwerp to speak at the RetailDetail Congress. That day we will bring a nice mix of international platforms and local brands on stage. Alibaba, Rainpharma, Polestar, Odette Lunettes, Cameleon, Parfuma and La Bottega will also be present, amongst others. Through this link you can order tickets.
