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    Europe'S Largest Fashion Business Zalando Line Store Clearance Inventory

    2015/1/4 23:03:00 18

    ZalandoElectricity SupplierClean Up


      

    Zalando

    It is Europe's largest fashion business provider. In addition to developing online fashion business, it also operates two large warehouse type shopping malls, specializing in dealing with unsalable 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 has learned from the recent report of the Wall Street journal 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 business to those unwilling.

    Shopping online

    In the consumer group.

    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."

    Many clothing retailers deal with inventory through TJX's T.J. Maxx, Ross Stores Inc and other distribution stores.

    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.

    {page_break}

    Wahl, who has started selling online at retail, and now has 8 physical stores; RentTheRunway.com, which is also engaged in high-end fashion network leasing business, is planning to open four physical stores this month; luxury brand discount retailer Gilt.com has set up some stores in the United States to meet its 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.

    Zalando launched the online business in 2008 following the model of the American footwear electric business Zappos. After two years, the fashion category was added, and then the inventory cleaning plan was launched.

    At that time, some returned goods and defective clothing were constantly accumulating, and even some hot selling items would accumulate a lot of stock when they broke the code.

    Zalando allows online shoppers to return goods within 100 days after shopping, although most customers will almost always return them, but a long return period means that some goods will not be so new after they are returned.

    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 we don't know how the market will reflect, Zalando keeps a low profile and is far away from business.

    Industry Center

    The low end rented an abandoned factory as the address of 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 has also launched its own brand of clothing and shoes, and has gained 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, Adidas, Lee's clothes on their way to work or go out on a trip, and make them loose.

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


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