Zalando focuses on luxury and second-hand

In 2019, Zalando realised another major growth in turnover and profit, with the fourth quarter seeing particularly good results. In the next few years, the German webshop will focus more on luxury brands and second-hand clothing.

Cyber Week

Last year, Zalando handled almost 145 million orders, a significant increase compared to the 116 million in 2018. The number of active customers went up 6.4 million to 31 million. This grow resulted in a turnover rise by more than a billion euros, to 6.48 billion euros. EBITDA went up from 173.4 million to 224.9 million euro. Almost half of that full-year result, 110 million euros, was realised in the fourth quarter after a very successful Cyber Week.

Zalando’s partnership programme gained in importance: sales by partners went up from 10 % to 15 % of the gross merchandise volume. Another important pillar of growth were the services that ‘make it easier for companies to be successful on the platform’, such as Zalando Fulfillment Solutions and Zalando Marketing Services. In the fourth quarter, almost 40 % of all partnership programme orders were shipped through Zalando’s own logistic service.

Luxury and second-hand

This year, Zalando wants to expand its premium segment, hoping to double luxury turnover by 2023. It has been Zalando’s fastest growing segment and it is particularly popular with younger customers, CEO David Schneider said. Another path to growth is second-hand: the platform will add a ‘pre-owned’ section in which customers can not only buy, but also sell second-hand clothing.

The German webshop hopes to increase its turnover by 15 to 20 % and lift its ebitda to between 225 and 275 million euros. The press release specifically states that the e-tailer does not take into account any adverse effects of the coronacrisis.