Topic of the Week - Zalando Accelerates Growth and Expansion
Zalando, a leading online fashion retailer, has announced a successful year with higher revenue, increased profits, and a growing customer base. The company's ecosystem strategy, which focuses on both business-to-consumer (B2C) and business-to-business (B2B) segments, has driven growth and profitability. This strategy has allowed Zalando to diversify its revenue streams and expand its reach into new markets.
The company's financial statement highlights include revenue growth of 4.2% in 2024, with gross merchandise volume (GMV) increasing by 4.5%. Net income reached €251.1 million, more than three times higher than in 2023. The active customer base grew by 2.2 million to an all-time high of 51.8 million consumers. Business revenue increased by 11.5% in 2024, driven by the company's B2B strategy. This growth is a testament to Zalando's ability to adapt to changing market conditions and capitalise on new opportunities.
Zalando attributes its strong performance to the successful execution of its ecosystem strategy, which has contributed to a strong financial performance in 2024. The company plans to accelerate its execution efforts and invest in future growth. This strategy has already shown promising results, with the company's consumer division still about ten times larger than its business division. The planned acquisition of About You is expected to further transform Zalando into a B2B powerhouse, providing a significant boost to the company's growth prospects.
In addition to its growth and profitability, Zalando is expanding its operations into three new countries: Portugal, Greece, and Bulgaria. This marks the company's first international expansion since 2022. The company is also rolling out its updated loyalty programme, Zalando Plus, to more countries this year. This programme has been designed to reward loyal customers and provide them with exclusive benefits and discounts.
Looking ahead, Zalando expects revenue and GMV growth between 4 and 9% in 2025, excluding the impact of its planned acquisition of About You. The company is confident that its ecosystem strategy will continue to drive growth and profitability, and is well-positioned to capitalise on the growing demand for online fashion and lifestyle products. Overall, Zalando's market update highlights the company's ability to adapt to changing market conditions and drive growth through its ecosystem strategy.
Zalando's success is also attributed to its focus on innovation and technology. The company has invested heavily in developing its own technology and logistics capabilities, allowing it to provide a seamless and efficient shopping experience for its customers. This has enabled Zalando to stay ahead of the competition and maintain its position as a leading online fashion retailer.
eCommerce Market Stats
See some statistics relating to this week’s topics in the eCommerce market below.
Zalando eCommerce stats
- Zalando's revenue grew by 4.2% in 2024.
- The company's gross merchandise volume (GMV) increased by 4.5% in 2024.
- Zalando's net income reached €251.1 million in 2024, more than three times higher than in 2023.
- The active customer base grew by 2.2 million to an all-time high of 51.8 million consumers.
- Business revenue increased by 11.5% in 2024.
That’s all for this week…
If you would like to read more industry related news and insights, check out our articles below, or get in touch to discuss our services!
