Zalando is holding a major spring clean: several smaller brands are cut from the platform. In a bid to boost profits, the fashion marketplace is becoming more selective.
New brand strategy
Quality over quantity is Zalando’s new motto. After years of wanting to grow as much as possible, both in sales and brand partners, the Berlin-based marketplace is suddenly taking a more selective approach. The company is opting for a more curated offering, and some brands no longer fit that bill.
Several partners on the platform, including smaller labels like Auden Cavill and Jimmy Sanders, received an email last week saying they “no longer fit the assortment strategy“. They are being scrapped globally. The products will be removed from the sites (and possibly warehouses) on 30 June, according to the mail that Internet World was able to access.
Zalando confirms that it is evaluating its brand portfolio, claiming it is an ongoing process. The company does not disclose what criteria it is using in that evaluation, but it is clear that a lot of smaller and possibly weaker-performing brands are at risk. At its annual investor day, Zalando had made it clear that in future there should be more locally adapted assortment, including ‘local heroes’. The company also wants to pay extra attention to sustainable, diverse and inclusive brands.