In this article, we will be seeing the Zalora SWOT Analysis and its Competitors.
Introduction
Zalora is an online fashion retailer which sells apparel, accessories, shoes & beauty products for both men, women & kids.
Zalora is an online e-commerce company launched in the year 2012 in Indonesia, Malaysia. Zalora is a private company which is headquartered in Central Area, Singapore. Zalora operates its operations in several South Asian countries like Indonesia, Singapore, Malaysia, the Philippines, Hong Kong, Taiwan, Thailand & Brunei. Zalora provides users of both international brands & local brands in every country wherever it is being operated. Zalora also had its operation in Australia & New Zealand as Iconic. Zalora provides customers with products like men’s wear, women’s wear, kid’s wear, beauty products, luxury & lifestyle products.
About Zalora
Zalora is Asia’s one of the leading & well-known online fashion destinations. Zalora is one of the largest & widely growing fashion industries in Southeast Asia. Zalora came into existence in 2012.
Zalora offers more than 500 international & local brands & designer quality products. It has over & over thousands of various kinds of products for its customers. It offers a 30-day free return policy also if the customer is unlikely to own it. Zalora team provides the fastest delivery within just 1-3 working days, free delivery also on certain conditions & provides multiple payment methods along with cash-on-delivery.
The Zalora team’s mission is to present customers with an easy & fun shopping experience. It also has a customer services consultant for solving the customers any kind of issues irrespective of which-ever country you are from.
History of Zalora
Zalora was launched in 2012 in various countries like Indonesia, Malaysia, Singapore, etc. In May 2013 Zalora raised $100 from various investors like Rocket Internet, Kinnevik AB, Summit Partners, Verlinvest Tengelmann group.
In December 2013, Zalora raised a second round of $112 million from various new investors. In 2014, Rocket Internet & Kinnevik AB combined & formed Global Fashion Group (GFG), this group includes Lamoda, Dafiti, Namshi, Jabong & Zalora. In 2017, YCH Group & Zalora confronted the opening of a 470,000 square foot regional e-fulfillment hub at Kuala Lumpur, Malaysia.
Zalora Online Platform services
Easy Navigation & intuitive operation
Zalora’s online store is constructed in such a way that users or customers can easily understand the steps from where to where they can navigate without any trouble. Zalora’s every online page is simplified to define its functions broadly in the small steps manner.
Simple, Safe & Secure Shopping
As customers add a particular product to the cart, various payment methods are displayed so that customers can easily select whatever method they want to use.
Payment completion can be done as invoice, direct debit, prepayment, or credit card. As customers complete the ordering process, they can get to know each & every step of their products like from where it is being dispatched, they can track the delivery locational details & when it can be reached. So, customers can easily track their product’s actual location.
Free Delivery Services
Customers can get the benefit of free delivery only if their basket size of RM99 is met, for both East & West Malaysia.
Shoes & Clothes sizes can vary after a try, so customers can return that product within 30 days of delivery.
Product Range
Zalora provides customers various big brand products from Nike to American Apparel, New Look to River Island, Calvin Klein to Adidas, MICHAEL KORS to Superdry, Tommy Hilfiger to VANS, Puma to Trendyol, H&M to Levi’s, & much more.
Zalora’s SWOT Analysis
Strengths of Zalora
- As the Zalora app or website provides most of the branded products as well as local products also, both brand products buyer & local products buyer connects to the Zalora platform to benefit the provided advantage. So, Zalora is attracting both brand affordable & non-branded products, which is the biggest plus point for the company.
- Zalora has a quality relationship with the suppliers, in the future if companies get a vast approach then there is going to be big support from suppliers based on providing more than needed products.
- Zalora’s strong balance sheet & financial statement can help it to invest in new or valuable projects, which can become a big revenue source for its growth.
- Zalora holds a good track record of launching new products to its platforms. So, customers can constantly get connected to Zalora’s platforms to buy the products.
- Zalora team has a constant hand on movements in areas like technology, sales & marketing, the applied strategies in these areas has always helped Zalora to grow more. So, this is also helping to come up & up.
Weakness of Zalora
- Zalora’s project management team has constant attention on internal delivery, losing its focus on external stakeholders. This can have a bad impact on customers’ growth.
- Zalora is blurrily focused on inventory & cash cycle. But, Zalora can improve more if the team has attention towards inventory management.
- Zalora app users or customers had spoken about some of the lagging points in the review of the app. If the Zalora team focuses on those issues then it may attract more customers.
- Zalora is bending backward in the aspects of rightly using technologies like Artificial Intelligence & Machine Learning. Also in the digital transportation field of the Zalora app.
- Zalora app’s past track record on environmental issues is not very appreciable. These can result in a backlash of customers to Zalora.
Opportunities for Zalora
- As digital marketing & social media is on high in the present real world. Zalora can use these for their benefit by developing new strategies of using digital marketing & social media as a resource.
- Zalora is lacking in access to a high-level talent market. Growing & expanding Zalora into an international market will be proven beneficial.
- If Zalora focuses on marketing the most successful products then this can create a trend for Zalora.
Threats for Zalora
- Zalora works in an industry where the culture of sticky price is vastly adopted. This impacts the organization with losses because they can’t market that product with the actual premium price which it costs.
- As Zalora is focused on growing its brand in China but the trade relation of the US & China is not so good at this situation as of 2021.
Competitors of Zalora
Zalora company has 2000 employees under its growth. And the impact of the manpower of Zalora results in earning revenue for the present as well as future. Zalora had revenue of $378 million in 2020. As it is also one of the leading in its industry, the competitors are also there to be on the field. Some of Zalora’s competitors are:
- SSENSE
Employees-800.
Revenue- $168 million.
- Zalando
Employees- 13,000.
Revenue- $29 million.
- Trendyol
Employees- 603.
Revenue- $125 million.
- Myntra
Employees- 1,150.
Revenue- $216 million.
- Trendin
Employees- 802.
Revenue- $155 million.
- ASOS
Employees- 4,755.
Revenue- $3 Billion.
So, above all are the tough competitors for Zalora.
Conclusion
Zalora is very near to completing the 1st decade of its career, as of 2021. Still, Zalora hasn’t reached the whole world level but the success of it doesn’t feel like it. Zalora has its operations in countable countries. And even though it hadn’t introduced itself to the world level market, the appreciation of Zalora had one round all over the world.
Zalora is constantly growing in the aspect of revenue year by year by challenging its competitors. But, few competitors of Zalora have reached a world-level market like Myntra, ASOS, etc. Still, those big companies had one eye on Zalora’s strategies. This itself depicts that Zalora is going to grow bigger & wider in the world level market. Zalora has some weaknesses which are stated in SWOT analysis, if that is solved then the growth for Zalora is definite.
Frequently Asked Questions
1. How are the working hours in Zalora?
Answer: Zalora is a leading e-commerce company with a higher number of employees. As it is growing bigger, the employment greed of the people is constantly increasing. Some of the present working employees stated that Zalora provides employees flexible working hours i.e. 8 hours working & 1-hour lunch break time. Employees also can work in two shifts morning & evening. So, it is proven that the working culture in Zalora is so friendly & good.
2. Which place does Zalora based from?
Answer: As Zalora hadn’t reached the world level market. Its establishment is limited to some countries but it has a strong commitment in the aspect of growth. Zalora operates in several South Asian countries like Indonesia, Singapore, Malaysia, Philippines, Hong Kong, Taiwan, Thailand, Brunei, New York, etc. Zalora is constantly in the battle to achieve worldwide so that its services can reach as many users or customers as possible.
3. Who are Zalora’s competitors?
Answer: Zalora’s competitors are some of the well-established & well-known companies. Even some competitors are those through which they are connected & Zalora also marketing its products. So, Zalora’s competitors are SSENSE, Zalando, Myntra, Trendyol, ASOS, Trendin, etc.
4. What is Zalora known for?
Answer: Zalora is an e-commerce company that sells various products for men, women, kids, beauty products, etc. But, especially Zalora is known for the services provided to customers like 30 days return policy, delivery within 1-3 working days, cash-on-delivery, etc.
