Zalando

Zalando

Zalando is an online shopping platform based in Berlin, Germany. The platform was founded in 2008 by Robert Gentz and David Schneider under the name Ifansho. It specializes in the sale of footwear, accessories and clothing including luxury items. 

Zalando

The history of Zalando

Zalando was born in 2008 from an entrepreneurial idea of Robert Gentz and David Schneider, initially set up on the American model for selling shoes online.  The origin of the name is most likely to be attributed to an Italian word. The verb “Zahlen” which means to pay in German and from “lando” which describes the idea of “action” in the gerund. A sort of Italian-German translation of the verb “pagando”.

Founded just days before the outbreak of the 2008 economic crisis, the two entrepreneurs start the business from their shared apartment. They receive orders and manage the relationship with customers directly from their phones and deliver products in person to the post office to be shipped.

Originally Zalando was born as an e-commerce of flip-flops, but soon the range expanded and already in 2009 it acquired all types of shoes and even the first pieces of clothing.

Thanks to the 100-day return guarantee, Zalando matures quickly in the e-commerce industry, gaining a major competitive advantage. Two years after opening, the brand expands its operational offices and welcomes Rubin Ritter to the management board. The project took off and investors such as Rocket Internet (which still holds 17% of the shares of Zalando SE) competed to enter the project. Later, the two founders were joined by a young entrepreneur on the rise: Rubin Ritter.

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The management board of Zalando: from left, Rubin Ritter, David Schneider and Robert Gentz

The consolidation of Zalando on the market comes after its international expansion, in Austria in 2009, conquering France, the Netherlands in 2010. Switzerland, Italy, United Kingdom follow a year later and in 2012 the brand continues its expansion in most of Europe.

Reasons for Zalando’s success

The success of Zalando is mainly due to the super performing assistance. Not only the after-sales service, with the now famous slogan “free returns and free shipping”, but also an unprecedented pre-sales service. In fact, the preparation of the customer’s purchase is meticulous and studied in detail. Shipping is also a point in favor of the German e-commerce: the product is delivered in maximum 3-5 days and the tracking can be followed step by step.

Returns are really free and you can use this service for up to 100 days after purchase. The refund takes place punctually within 10 days after sending the goods.The assistance is really impeccable, it guarantees a quick answer (either by phone or by mail) within 24 hours. 

Moreover, the website is extremely user friendly and studied in detail (what we were saying about the pre-sale experience extremely targeted and profiled). A sort of sell-experience tailored for each user “tailor made”.

Sustainable commitment

Zalando is very committed to sustainability and the circular economy, for which it has set some goals that it promises to achieve by 2025. The strategy in place, do.MORE, adheres to the Paris Fashion Pacts and encompasses a series of initiatives to internally revolutionize the brand’s practices in terms of logistics, product and services.

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Zalando’s Sustainability Strategy

Among them, by 2023, Zalando will produce sustainable packaging, in addition to ensuring that the materials used in the manufacture of products are certified and controlled. Among the goals, there is also that of deriving 25% of GMV (Gross Merchandise Volume) from sustainable products. Through the Zalando Zircle system, the brand is committed to extending the life of at least 50 million products.

Among the goals already achieved in 2019, Zalando guarantees zero-carbon footprint logistics operations. In 2020, energy emissions were reduced by 67%, plastic use decreased by 22%, and 87% of packaging is produced from sustainable materials. Also in 2020, the Zalando Zircle platform extended the life of approximately 340,000 products through the resale channel.

The offer, acquisitions and launch of the beauty line

The offer on the online site covers a wide range of clothing, including luxury clothing from the most important names in the fashion industry. Among the many brands, they include Adidas, Levi’s, Prada, Alberta Ferretti and many others. In March 2017, the brand acquired streetwear retailer Kickz.

The following year, the brand launched its cosmetics section in Germany, Poland and Austria. In parallel with the new offer, the retailer planned to open a concept store in Berlin with a focus on beauty.

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Launch of Zalando’s beauty category

Also in 2018, Zalando allied with other small German retailers to whom the brand offered the opportunity to expand their reach by granting them the sale of their products on the Zalando website.

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