LONDON — While the future of many multi-brand e-commerce platforms is in flux, Zalando is stepping out with a new offering on its website and app: a luxury, boutique-style space for designer brands.
The German e-commerce giant said the space targets customers hungry for designer fashion, as well as “newcomers eager to explore this world.”
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Additionally, Zalando said the region will give its brand partners the chance to “tell their stories” and promote collections, campaigns and collaborations in an “elevated, curated” space.
“We can see that customers are increasingly looking for inspiration, personalization and engaging new experiences. They are also continually becoming more interested in designer brands on Zalando, as searches for luxury brands on Zalando are increasing,” said Lena-Sophie Roeper, designer and luxury director at Zalando.
“For us, this presents the opportunity to be an inspiring destination for everyone, from loyal customers who regularly purchase contemporary and luxury products, to first-time shoppers,” he added.
Zalando Designer offers a variety of European and international brands, including Lardini, Aspesi, Bally, Helmut Lang, Proenza Schouler White Label, Victoria Beckham, Missoni, Rabanne, Vivienne Westwood, 032c, GCDS, Peter Do, Ahluwalia, Ralph Lauren and Emporio Armani .
To celebrate the launch, Zalando has signed a one-year partnership with British-Japanese musician and actor Rina Sawayama as the designer and ambassador of the luxury fashion offering in 2024.
Zalando has released a creative campaign with Sawayama, saying it will “capitalize on key moments in the fashion calendar throughout the year.” In addition to fashion videos and shoots, the fashion section of the site also includes Sawayama’s best selections of the season.
Zalando said the launch of the zone and the appointment of Sawayama signals a focus on “superior customer experience and inspiration”. Last year, the company introduced Stories on Zalando, an immersive shopping experience created in collaboration with Highsnobiety, which it acquired in 2022.
The Stories element highlights fashion and culture trends, personalities and special collaborations and aims to highlight designer brands like GmbH, Ludovic de Saint Sernin and special collaborations like MM6 x Chen Peng.
Some of the stories include, “Meet the wave of emerging talent,” “Level up your tiers,” and “Facing a Blue Monday?” They are fashion features similar to what a magazine or weekend newspaper supplement might offer, with headlines such as. Fear not, here’s how to deal with it.”
Zalando has also implemented its new feature, an AI-powered fashion assistant, to help narrow down options and avoid the endless scrolling trap that e-commerce customers can fall into. The artificial intelligence assistant also offers style tips.
The experience, images and editorial content are virtually indistinguishable from high-end fashion sites.
It’s a bold move to implement such a proposal at a time when luxury demand is slowing down and the enthusiastic customer has virtually disappeared, but Zalando continues undeterred.
“We are in a unique position to capture the market opportunity because we do not focus solely on a limited group of high-end designer clients. With more than 50 million customers in 25 markets, we serve a much broader audience, from a customer researching designer products for the first time to a customer who regularly invests in designer products,” Roeper said in an interview with WWD.
“On top of that, existing Zalando customers organically convert into designer customers thanks to our cross-category shopping experience. “Through the storytelling experience offered by Stories on Zalando throughout the customer journey through our website and app, we encourage our customers to explore designer fashion when they look for inspiration,” he added.
Roeper added that the updated experience features serve brands as well as customers.
“Brand ‘homes’ give brands the opportunity to tell their stories with the help of a dynamic library of design elements. We know it’s especially important for designer brands to have full control over their narrative and choose the stories they want to tell around their brand, collections and campaigns. “The new Designer experience gives them a toolbox for truly advanced storytelling,” he said.
The launch of the specialty area comes at a pivotal time for first-mover designers and luxury multi-brand retailers shifting shape and ownership.
As reported, Coupang bought Farfetch out of administration late last year, and it remains unclear what plans it has for the once-giant fashion platform and back-office service provider.
As a result of the Coupang deal, Richemont canceled plans to sell Yoox Net-a-porter to Farfetch and Alabbar. The collapse of the deal put an end to Richemont chairman Johann Rupert’s dream of creating a jointly owned “neutral” e-commerce platform that would be open to all brands.
Richemont still plans to sell a majority stake in YNAP and expects to do so within the next 12 months. The luxury giant said it has already received unwanted attention from potential buyers.
The future of luxury retailer Browns, owned by Farfetch, is also uncertain. Coupang has yet to confirm Farfetch’s plans for the London boutique, which it bought in 2015 and used as a laboratory to test its “store of the future” digital technology.
Also in December, Mike Ashley’s Frasers Group acquired Matches from Apax Partners for a rock-bottom price in what has become a difficult environment for luxury e-commerce retailers.
Zalando’s new store opens nearly 18 months after Amazon Luxury Stores arrived in Europe. The German giant will certainly go head-to-head with its US rival, which carries high-end brands such as Perfect Moment, Giuseppe Zanotti and Mark Cross, as well as second-hand products from Chanel and Louis Vuitton.
During an earnings call last year, Zalando said its designer luxury space is part of its plan to “create further foundations for future growth, inspire customers with new content and storytelling formats, and enhance the experience for designer brands and customers.”
In a research note in November, RBC Capital Markets analyst Wassachon Udomsilpa wrote that Zalando remains the bank’s preferred player in online apparel retail, despite a 3.2 percent decline in third-quarter revenues to €2.27 billion; “Seize growth when consumer demand returns.”
“We are encouraged by Zalando’s ability to navigate a volatile and challenging environment,” Udomsilpa added.
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