Zalando expands into Eastern Europe

As the largest e-commerce platform in Germany, Zalando has been continuously expanding its market in Europe since its establishment, and recently announced that it will expand its market to Croatia, Estonia and Latvia.

Earlier this year, Zalando was launched in Lithuania, Slovakia and Slovenia. With the addition of the three new markets today, Zalando said it will be able to develop more than 17.59 million potential new customers. Local retailers can also sell their products throughout Europe through their platform, achieving a win-win effect.

“We are delighted to open Zalando to consumers in Croatia, Estonia and Latvia and to offer them access to much-loved and desirable brands through the Zalando customer experience,” said Sarah Guerrier, Head of Central and Eastern Europe.

Although not as good as Amazon, Zalando's development path is still an upward state, which is also the confidence for the platform to continue to expand. At the end of 2020, Zalando's users increased by nearly 8 million compared with 2019, the number of orders increased by 40 million to 186 million, and sales increased from less than 6.5 billion euros to 8 billion euros.

Especially the outstanding performance in the first quarter of this year has given it greater confidence in its future development prospects.

It is reported that in the first quarter of this year, Zalando's revenue reached 2.2 billion euros, an increase of 46.8%, and its profit reached 93.3 million euros, which is the strongest growth since its listing in 2014. Officials also expect its platform's sales this year to reach 10.1 billion euros.

Zalando also said it hopes to account for 10% of the entire European fashion market by 2025. To this end, Zalando will continue to expand its network of fulfillment centers in Europe, with plans to add five more fulfillment centers by the end of 2023. Two new warehouses in Rotterdam and Madrid will be put into use this year, and construction will begin on three more warehouses in France, Germany and Poland.

In addition to continuously expanding the European market, Zalando is also constantly cooperating with well-known brands to attract more customers to its platform. Some time ago, it announced a strategic partnership with Sephora. In addition, it is also constantly optimizing platform functions to provide sellers and buyers with a better user experience.

Zalando's expansion appetite does not stop there. It has officially announced that it will enter Hungary and Romania next year.

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