đ đȘđș Will Zalando become the next Shein? Even though Zalando has discontinued its Factory to consumer (F2C) model tests (with end of Movmnt app and zLabels), the recent launch of Zeus fulfillment could signal a comeback of the strategy. With Shein's rise and shareholder pressure for profits, Zalando's market strategy and commitment to quality over quantity face a cruci
Zalando's Movmnt app was a bold foray into the F2C space, mirroring Shein's approach. Aimed at budget-conscious consumers, it connected them directly to manufacturers. Despite its potential, Zalando discontinued Movmnt in 2018.
Strategy first introduced in 2016 Capital Days, involved leveraging Zalando's logistics for brand support, similar to Amazon and Bol.com. It included a pilot project with zLabels, reflecting a more integrated e-commerce ecosystem. I loved the Zalando Essentials but it was also discontinued back in 2019.
In late 2023, Zalando unveiled ZEOS, marking a shift towards technological and logistical excellence. This platform is designed to unify multi-channel retail management across Europe, signaling Zalando's possible come back to Shein's successful direct sales model.
With Shein's rapid rise, offering affordable, trend-focused fashion, Zalando's position in the market is under scrutiny. Executive behind the doors need to be already considering that, with shareholders breath on their shoulders to push for more profits.
Zalando in 2023 has made claims that they pursue quality over quantity when it comes to the brands it stocks and the consumers it attracts. It is focusing on relevant and premium labels as well as loyal, sustainability-minded customers. Robert Gentz, co-chief executive said âThe global clothing industry must abandon the âfast fashionâ business model within the next ten years, âThe fashion industry is part of a global sustainability problem,â.
So the question is will the shareholders push Zalando to earn more with Sheinâs fast fashion model or will Zalando stick to its positioning and sustainability claims? Time will tell...
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