In this article, we will see the Zalando SWOT Analysis and its competitors.
Zalando is Europe’s leading e-commerce company that provides its services to customers through an online platform. Zalando company has employees from over 140 countries who work with passion & enthusiasm to make Zalando a world-level leading company.
Zalando always works to provide customers with various new kinds of services. Let it be a 100 days return policy too much more new future convictions. Zalando provides users a new range of products that are leading in the fashion industry, let it be from shoes, clothing to accessories. Adding free delivery & return policies for the customers. Zalando has connected brands & customers through online direction by dealing with more than 4,500 international brands.
Zalando works in different business areas like online retail, private labels & shopping clubs to style advice. Zalando’s ethics is to grow with fashion & technology as simple as that because this helps Zalando to be more intelligent, friendlier & more open to the customers. And these strategies had helped Zalando to reach 23 countries by carrying their fashion products & establishing them there. And 16,000 employees are also the leaders in this success for Zalando.
History of Zalando
Zalando was founded in 2008. People behind inventing were Rocket Internet, Robert Gentz & David Schneider, initially, the company name was Ifansho. Later it was changed to Zalando. During the beginning of Zalando, the only service provided was footwear.
In 2010, the company began to launch in the Netherlands & France by increasing more services. In the next year, Zalando provided online sites to the UK, Italy & Switzerland. Adding up to it expanded much more in Sweden, Denmark, Finland, Norway, Belgium, Spain & Poland. In 2012, it started deliveries to Austria.
In 2013, Zalando made little changes in its online platform by inspiring China on-growing strategies. In 2015, the company started collaborating with Topshop & started providing merchandise products online. In the same year, Zalando acquired Bread & butter, a fashion trade fair, with the motive of making the biggest fashion event to attract people. But later it was discontinued because of lack of success.
In 2017, Zalando owned Kickz which was a German-based company. Next year Zalando began beauty products in Germany, Poland & Austria & also opened a beauty products store in Berlin with a variety of ranges of quality products. In 2018 only, Zalando grew more by starting its operations in Ireland & Czech Republic.
In 2021, Zalando announced that it will provide 5 days off in August for their employees dedicated to hard work in the COVID pandemic.
Zalando’s SWOT Analysis
Zalando isn’t a new company, it has ruled for years and years by growing from its mistakes to success. From a small shop to one of the leading companies in the fashion & e-commerce industry with worldwide recognition. Only because of the success which Zalando has achieved, most of the biggest companies & brands are collaborating with them. These brands reach every aspect of the age from men, women & kids.
So, the below-given SWOT analysis of Zalando will make you know the various kinds of strengths, weaknesses, opportunities & threats of it. These all also showcase where the company is lagging backward & where it is leaning forwards.
Strengths of Zalando
Zalando collaborates with much bigger brands that have their origin in one country to various countries. So, this helps customers to buy the products of their own country’s leading brands to world level famous brands. It holds every product of every country’s brand with variations in prices also compared to other e-commerce sites. So, if a particular brand product is costly on another company’s e-commerce site & the same product of the same brand is cheaper in Zalando then it is obvious that customers will buy through Zalando only. So, this is an advantage for Zalando.
Valuable Services To Customer
Zalando provides one of the most helpful & valuable services to its customers is its free delivery & free return policy. Customers have not paid delivery charges for any product & also with early delivery services. If the ordered product is unfit for the customer then he/she can return it within 100 days. And 100 days is a long duration but for Zalando, it is not because they trust their customers that the returned product will be safe & secure. So, this is another advantage for customers.
Online & Offline Payment
Zalando provides both online & offline payment. Online means through credit or debit card. And offline covers cash on delivery services. So, this also cultivates trust for Zalando, within customers. Because there are very few e-commerce companies that offer cash on delivery services.
A user or customer can access Zalando online e-commerce fashion services through both website & application both. So, it is up to you that which is comfortable for you to use.
Zalando’s revenue analysis states that from its beginning years to the present year, its revenue is continuously growing. This states that customers are loving the services provided by Zalando.
Research & Innovation for Future
Zalando has a strong & determined focus on research & innovation. It is constantly trying to give users the best products with beneficial services, let it be in the form of discounts, delivery, or return services.
Weakness of Zalando
Zalando is a little slow in the aspect of business expansion because if considered as the year 2021, it has been in the market for more than a decade but it hasn’t reached a global approach. So, this is resulting in Zalando a limited global presence in its industry.
Easily Lose Hopes
Zalando easily drops on-going projects if they hadn’t reached their expectation. This can be the folding back step for Zalando because projects which got limited success in the present situation can achieve a global reach if it is followed constantly.
Dependent on Brand Partner
Zalando is dependent on brand partners. This can limit the users because the same brand products are also available on other e-commerce company websites. So, if Zalando starts to also focus on newly emerging brands that have a limited presence on other e-commerce sites then they can grow more.
Opportunities for Zalando
Present Fashionable Products
Bringing new fashions to the customers will be proven beneficial to Zalando because as people are very keen on their dresses & wearing only branded & fashionable clothing has become very important for the users. So, presenting many more fashions through an online platform is very important for Zalando’s future growth.
Renew Business Model
Zalando can grow more if it works on the weak point so that it can grow & improve its presence in the global market. The business model has to be renewed if Zalando needs its future bright.
Technology oriented Business
Zalando should focus on technology-oriented businesses because new technology is constantly being presented for people’s work-life benefits. So, these strategies can be helpful to Zalando to earn much more revenue.
Threats to Zalando
Increase in Customer Acquisition Cost (CAC)
Zalando is involved in a very competitive e-commerce field so that they can make the rise in customer acquisition cost which will result in spending more money for fulfilling these issues. So, these can affect Zalando’s business model.
Difficult to Handle Business Model
As the fashion industry constantly presents more styles of products to the customers in day-to-day life. So, coming up with a new marketing & business strategy is very difficult. Because using the same marketing & business strategy for every product will prove a calamity.
Competitors of Zalando
Revenue: $265 million.
Revenue: $378 million.
Revenue: $221 million.
Revenue: $709 million.
Revenue: $3 billion.
Revenue: $1 billion.
The above all are the competitors of the Zalando. Zalando always stayed different from all of them in various ways. If Zalando’s growth is being noticed as per revenue then Zalando’s revenue was $7 billion.
Zalando is still in the leading position compared to the above-listed competitors. If Zalando is compared with global level companies then the facts say Zalando still has to work hard to reach a leading position in the global market.
Zalando is in a long run in its industry because the industry isn’t new to the business world. So, as a business is old some companies are already ruling in the top positions for years to years, competing with them is going to be a little difficult for Zalando. But, Zalando has proven to them that it is going to be in a leading position in the future because Zalando’s constant effort is resulting in a good outcome in ways like customer satisfaction, revenue growth year to year, new brands collaborating with them, etc.
So, Zalando has some strengths & weaknesses, but the opportunity to grow is also there. If Zalando focuses on using these opportunities in future steps then growth for them is mandatory.
Frequently Asked Questions
1. How can customers contact Zalando?
Answer: Zalando makes use of its services to the customers through apps & websites. If a customer has any of the queries then he/she can contact through email & customers can also contact through call, for the contact number & email of Zalando’s team visit the website of the company’s terms & condition page where they have mentioned the ways which customers can use to contact them.
2. What is the payment method in Zalando?
Answer: Customers can do online payments using credit or debit cards (VISA, Master Card, American Express) & PayPal. These online transactions through the Zalando platform are safe & secure. Data of customers are taken care of very strictly by using various security services.