Just when you thought that all the UK’s mainstream outlets and most of the niche ones had established an online presence, along comes an outsider to shake them up.
We’ve seen this trend revolutionise the high street here in the UK, with chains such as BHS, Woolworths, Borders and HMV disappear as the combination of new online competition such as Amazon and ASOS and first class online/high street combination stores like John Lewis‘s and Next squeeze them out. Well could the next competitor come from Europe?
Online store Zalando has been growing fast, predominantly in it’s native DACH region (Germany, Austria, Switzerland), and revenues reached €3bn in just 7 years of trading. Now operating in 15 European countries, Zalando achieves impressive loyalty amongst it’s users, with 80% of it’s purchases being from repeat customers. Starting out in shoes, Zalando has established product lines across a range of fashion items for Men, Women and children.
I think Zalando does pose a real threat to Britain’s existing high street and online retailers and I wouldn’t be at all surprised if they are already gearing up to face that threat.
For more information on Zalando, here’s an infographic giving more detail. You can also read more here