Zalando SE, Europe’s largest online fashion retailer, will add more premium brands in a move that will position it head-to-head with Richemont’s e-commerce business Yoox Net-a-Porter.
Zalando plans to double its premium and luxury assortment by the end of 2023 to gain a bigger share in the €38bil (RM174.62bil) market for high-end fashion, the company said in a statement on Feb 27. Zalando has started out by adding Moschino Couture and Alberta Ferretti.
Millennials have been accelerating a trend of increased purchases of luxury goods online as they grow more comfortable having higher-priced items delivered instead of setting foot in brick-and-mortar boutiques. That has prompted Richemont, the maker of Cartier jewellery and Vacheron Constantin timepieces, to bolster e-commerce through acquisitions and a partnership with China’s Alibaba.
"Premium has been our fastest-growing category in the past months,” said David Schneider, Zalando’s co-chief executive officer. "We see a huge potential to build on that.”
Zalando will also start offering a platform to buy and sell pre-owned fashion items in the third quarter.
While Zalando keeps adding customers, the rate at which it was able to gain new clients stalled last year, suggesting intense competition from both brick-and-mortar fashion retailers and online specialists from Asos Plc to Boohoo Group Plc and Amazon.com Inc. – Bloomberg