German fashion e-commerce Zalando's GMV is expected to reach 14.1 billion euros in 2021

According to Reuters, German fashion e-commerce company Zalando said that the lockdown measures taken during the 2020 COVID-19 pandemic drove sales up by about 23% to 8 billion euros, and overall its profits were more than double that of last year.

The company further stated that its revenue forecast for 2021 will be much higher than market expectations , and its gross merchandise volume (GMV) is expected to increase by 27% - 32% in 2021 to 13.6 billion to 14.1 billion euros . Its further goal is to increase GMV to more than 30 billion euros in 2025, almost three times the 10.7 billion euros in 2020.

This expected data is not groundless. Zalando said that the company had a good start at the beginning of the new year, and GMV has increased by about 50% in the first quarter of this year . As of 9:00 GMT on the 16th , the company's stock price rose by 3.8%.

Zalando was founded in Berlin in 2008 and has now grown into Europe's largest online fashion retailer. In addition to its own retail business, the platform also provides development space for other merchants and brands . As of the end of February 202, more than 3,400 physical stores have entered the Zalando platform .

The company plans to expand into six markets in Eastern Europe in 2021 and two more in 2022 .

It is reported that the company has more than 14,000 employees in 17 countries and currently only accounts for 3 % of the European market . The company's long-term goal is to occupy more than 10% of the European fashion market .

Zalando's rapid development in 2020 also provided a considerable number of parcels to the express delivery industry. According to data from the Federal Statistical Office, online and mail order sales in Germany alone increased by about 25%.

The epidemic has caused a large number of offline stores to close, and more and more people are choosing to shop online. Zalando has seized the opportunity, but it is not the only e-commerce platform that has benefited from the COVID-19 epidemic . Spain's Inditex Group and Sweden's H&M are Zalando 's fashion rivals in Europe , and their online sales performance should not be underestimated.

Rubin Ritte r, the outgoing co-CEO of Zalando, said , "Before the epidemic , about half of the buyers returned the goods, but during the epidemic, the return rate has not been so high . Buyers ordered more casual wear online than formal wear , with an average price of about 58 euros . "

Zalando has appointed Astrid Arndt as its chief people officer and the first female member of its senior board following criticism that the company has no women in its top management despite its customers being mostly women .

Fashion e-commerce

GMV

Zalando