THE WHAT? Zalando is set to double its premium and luxury ranges by 2023 as it looks to bolster slowing sales, according to a report by Reuters.
THE DETAILS Despite a strong final quarter in 2019, the online fashion retailer has predicted slowing sales for 2020 and is looking to luxury to boost revenue.
The company is also moving into the vintage clothing market in a bid to tap into the growing consumer desire for environmentally friendly shopping alternatives and the rise in demand for secondhand clothes. Co-Chief Executive Rubin Ritter said, “It can be an integral part of our business model.”
Zalando has already added luxury brands such as Moschino Couture and Alberta Ferretti to its roster, with the retailer registering 20 million search hits in 2019 for premium brands it doesn’t hold.
THE WHY? Despite being Europe’s biggest online-only fashion retailer, Zalando has recently moved into areas such as cosmetics and men’s products to try and shake up sluggish sales. The latest move into premium is thought to help the company’s average basket value.
Talking about luxury products, Lena-Sophie Roeper, Zalando Buying Director of Premium and Luxury, said, “It is lucrative, it’s increasingly digital and it’s growing.”