Zalando Opening Stores To Clean Up Inventory

Zalando is the largest fashion supplier in Europe. In addition to developing online fashion business, it also operates two large warehouse entity shopping centers, dealing with slow-moving goods, with a discount rate of 70%.

These two shopping malls have brought huge benefits to consumers as they buy large amounts of holiday gifts and their purses shrink.

At the same time, Zalando has expanded its business coverage and improved its brand awareness.

Hugo network learned from recent reports in the United States that many online retailers have opened physical stores on the layout of online businesses, allowing consumers to experience furniture, glasses and fashion items in a physical shop.

For example, Amazon recently rented a building in the center of Manhattan as a distribution center and warehouse for "delivery on the day".

Zalando is different in Frankfurt's warehouse stores. Instead of selling new products, it specializes in handling seasonal goods.

In 2013, Zalando's "other" business segment revenue amounted to $39 million 300 thousand, including the discount shopping mall and shopping and leisure bar business.

This year, the revenue of this sector will exceed 53 million 600 thousand euros.

The goal of Zalando is to bypass the middlemen and deal with inventory directly.

The establishment of these two entities makes it possible for them to cover their businesses to those consumers who are not willing to go shopping online.

Fred, IELTS, 25, who doesn't like shopping online, recently wants to buy some new sports clothes at Zalando shopping mall in Berlin.

"I don't like to go shopping online at all, I never log on to Zalando's shopping website, but every two weeks, I will go shopping in its physical shopping mall."

Quite a lot

Through TJX 's T.J. Maxx, Ross Stores Inc and other distribution stores to deal with inventory.

Zalando is committed to dealing directly with customers seeking cheap goods while maintaining its online retail business.

The management of Zalando was astonished by the enthusiasm of consumers before trying to buy clothes. Actually, this is what many people do.

Wahl, who has started selling online at retail, and now has 8 stores, is also planning to open four physical stores this month. Luxury brand discount retailers have set up stores in the United States to meet their members.

"Personal experience of goods is very important, because shopping is also an experience, a kind of experience you can share with your friends.

You don't necessarily feel this way when you flip the page.

Nils Stieglitz, Professor of Frankfurt Institute of economics and management.

When the 51 year old Gabriela Urban and his friends traveled to Berlin, they went shopping in Zalando shopping mall for the second time.

She said that it is a different experience to find a cheap and inexpensive thing between a large number of garments.

Before the interview, Gabriela Urban had purchased two pairs of trousers.

In order to deal with inventory, Zalando set up a shopping and leisure bar called Zalando Lounge.

However, Zalando Lounge is not enough to handle large quantities of inventory.

Zalando recognizes that it is more conducive to establishing brand awareness without controlling the whole supply chain through third party distributors. Therefore, it established a warehouse discount shopping mall in Berlin in 2012, which is specially designed for handling over season goods and broken codes.

Because Zalando did not know how the market would reflect, the company maintained a low profile and rented an abandoned factory away from the low end of the business center as the address of the discount mall.

Before long, a large number of foreign tourists visiting Berlin went to shopping malls, and nearby employees also took advantage of their lunchtime to shop for cheap goods in the mall.

In May of that year, the first discount mall was welcomed by consumers. Zalando made persistent efforts to set up second physical stores in Frankfurt and achieved great success.

Zalando was founded in 2008 by Daivd Schneider and Robert Gentz in Berlin. Its largest investor is Germany's famous Samwer three brothers.

Its name comes from the combination of Alando and the famous American website Zappos.

Alando is the website created before the Samer three brothers.

After its establishment, Zalando quickly expanded to other European countries, and won the support of famous investment institutions such as Kinnevik and J.P.Morgen.

In 2013, Zalando's sales revenue had exceeded 1 billion euros.

Zalando also launched its own brand.

And shoes, they get higher profits.

Private brands account for roughly 10% to 20% of the total sales volume of their products.

The proportion is not very large, but it reduces the dependence on other brands and enjoys higher profits.

Zalando launched a mobile shopping app, contributing 41% of its website traffic.

Consumers can browse Nike on the way to commuting or traveling.

Lee's clothing, and easy to place orders.

At present, the download of this application is as high as several million times.