WHAT THE CUSTOMER WANTS - ASSORTMENT: Zalando Corporate

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WHAT THE CUSTOMER WANTS - ASSORTMENT: Zalando Corporate
ASSORTMENT:
WHAT THE
CUSTOMER
WANTS
WHAT THE CUSTOMER WANTS - ASSORTMENT: Zalando Corporate
CUSTOMERS

                   70%          23.9M         77%

                   female   active customer   mobile

> 4.1                                                  > 3.0
  orders/year                                            orders/year
> 29 min.                                              > 24 min.
  time spent/wau                                         time spent/wau
WHAT THE CUSTOMER WANTS - ASSORTMENT: Zalando Corporate
OFFERING THE
 MOST DESIRABLE AND
UNLIMITED ASSORTMENT
  TO OUR CUSTOMERS
WHAT THE CUSTOMER WANTS - ASSORTMENT: Zalando Corporate
WHY?

  NPS =
PRODUCT        NO
RANGE, ...   FOMO &
             SEARCH
 SCALE        COSTS
WHAT THE CUSTOMER WANTS - ASSORTMENT: Zalando Corporate
HOW?

   ALL           ALL PRICES
CATEGORIES
                 ALL SIZES

ALL BRANDS
             PERCEPTION DRIVERS
WHAT THE CUSTOMER WANTS - ASSORTMENT: Zalando Corporate
ALL CATEGORIES
       Head to Toe

 86%
O      of
                     FROM TOP TO TOE
GMV from                 ACROSS
cross-                TOUCHPOINTS
category                               Cross-category
purchases                              buyers purchase
                                              of what
                                         x 4 mono
                                              buyers
                                        purchase
WHAT THE CUSTOMER WANTS - ASSORTMENT: Zalando Corporate
BEAUTY
  Potential

    Underdeveloped Beauty market…               …dominated by traditional offline players
         EU Beauty Market Size & Share (2017)      Germany: Cosmetic Sales by Distribution Channel

                 Beauty          Fashion
                                                                         9%
                                     12%                        16%
                                                                              8%
                                                                                 7%
                           Online Share
                                                                                6%
                                                                            3% 4%
            Online         Total Beauty                                      1%
                           (Offline + Online)                  46%

                                    €84bn

                          €4bn
                            Total EU
                          Beauty Market

Source: Statista, Euromonitor
WHAT THE CUSTOMER WANTS - ASSORTMENT: Zalando Corporate
BEAUTY
Proposition
    ZALANDO FASHION                            ZALANDO BEAUTY
     CREATE YOUR STYLE                          COMPLETE THE LOOK

               ZALANDO AS YOUR STYLE DESTINATION WITH
                     FASHION + BEAUTY EXPERTISE
WHAT THE CUSTOMER WANTS - ASSORTMENT: Zalando Corporate
BEAUTY
               Portfolio                                    142 brands & 4.700 SKUs
…TO HIGH
FROM LOW…

            MAKE UP        SKINCARE   BATH & BODY   NAILS   HAIRCARE    TOOLS & ACC
WHAT THE CUSTOMER WANTS - ASSORTMENT: Zalando Corporate
ALL PRICES
High to Low

              MID

              LOW

              HIGH
WE KEEP IT
 FRESH
FRESHNESS
            1900 new items activated every day
ALL SIZES
Everyone fits   Already now we have 10% special sizes share of
                total women’s textiles
ALL BRANDS
                                   Curate a fashion assortment with
Global Superstars & Local Heroes   high local relevance in each market

                                    350
                                   NEW IN 2018 ALONE
PERCEPTION DRIVER
Sustainable   Our Vision: Become Europe's leading sustainable platform by 2020
              Our Goal: x10 our sustainable assortment
If Exclusives were a brand, it would
             be in our top 20

PERCEPTION DRIVER
Exclusives
ASSORTMENT USP
USED IN MARKETING
PERCEPTION DRIVER
     Exclusive Offerings and outstanding experiences for
     Zalando Customers
                                         B&B: experiential marketing platform for
                                         generation next blending physical with
                                         digital

6 big exclusive brand collaboration
campaigns celebrating 10 years Zalando
PERFORMANCE
   MARKETING
   Relevant and effective
                                   Effective steering through dynamic,
                                   ROI-based allocation of resources

Personalised marketing
experiences based on insights of
23.9m active customers
OFFERING THE MOST
DESIRABLE AND UNLIMITED
     ASSORTMENT TO
    OUR CUSTOMERS
PARTNER
PROGRAM
PP
Key Enabler to Unlimited Assortment

                                                          PP

     Wholesale                                Wholesale

      2016
                    Midterm strategy 20-30%
3 REASONS
Partners Love PP

EASY ACCESS        PARTNERS IN CONTROL   INCREMENTAL REVENUE
EASY ACCESS
PP Powered by Merchant Operations
                                    ENGINEERING

                                            SALES &
                                            ACCOUNT
                                            MANAGEMENT

                                            OPERATIONS

                                    QUALITY
                                    ASSURANCE
IN CONTROL
Price & Assortment Steering

                              • Partner selects assortment

                              • Controls their presence

                              • Partner sets price

                              • One seller per article

                              • Partner books full retail revenues
IN CONTROL
An Evolving Range of Resources to Power Your Business

 BRAND SHOP
                                        CONSUMER INSIGHTS
MORE REVENUE
Increase Brand Reach

                                                DENMAR
                                              N K
                 Vestibulum                   L
                                                             POLAN
                                                             D
                 congue                 BELGIU  GERMAN
                              FRANCE            Y
                                        M
                                    23M+
                              active customers      AUSTRI
                                                    A

                                           SWITZERLAN
                                           D

                                                    ITAL
                                                    Y

    15 markets
3 TYPES
Partners That We Attract

    VERTICAL               MULTI-BRAND   BRICK &
    RETAILER                RETAILER     MORTAR
VERTICAL RETAILER
Adaptable Business Model: DTC to DTC
VERTICAL RETAILER
New Distribution Model: B&M to DTC
MULTI-BRAND RETAILER
More Access To Adjacent Products
BRICK &
MORTAR
Unlocking A Brand’s Full Potential

                   PARTNER
 WHOLESALE                           PP ZFS
                 PROGRAM DTC
ZFS
Enabler for PP Growth

     BROADER ASSORTMENT     SCALE TO ALL MARKETS

     HIGHER ECOM LOGISTIC      SHARED PARCEL
         EFFICIENCIES
ZFS
 Gaining Momentum

20+             10%                   2X
BRANDS        2017 PP ORDER SHARE   2018 AMBITION
ZALANDO WINS
Accelerated Growth

Growth Levers:

(1)   Brand Acquisition
(2)   Sku Mix
(3)   Internationalization
(4)   New Customer Acquisition
+83 BRANDS
Diversified Portfolio of 500+ Partners
SKU MIX
Optimizing Our Assortment Mix

   DE
Internationalization
More Market Coverage
                       2017 - 2018 YTD

                                           REST OF
DE
DE            DACH
              DACH                        REST OF
                                           EUROPE
                                          EUROPE
                                         (W/O DACH)
                                              W/O DACH
CUSTOMERS
           PP Drives New Customer Acquisition*

2016                                                            2017                   2018

    ~1.0M+                                                                                           Brand 1

                                                        0.5M+                                        Brand 2

                                                                                                               PP only brands
                                                                       0.25M                         Brand 3

                                                                               ~150K                 Brand 4

                                                                                   ~100K             Brand 5

 *New Customer: customers who placed their 1st non-cancelled order
  in the selected Shop and ordered Women’s in this first order.                               ~25K   Brand 6
  New customers are not unique across brands
WIN WIN WIN
Happy Trifecta
EXPANSION
LET’S WELCOME
       IE, CZ, DE_eng & CH_it
                                 IRELAND

SERVE NEW ADJACENT COUNTRIES                             CZECH REPUBLIC
15.4M POTENTIAL CUSTOMERS

ENHANCE SHOPPING EXPERIENCE OF                                  GERMANY
NON-NATIVE CUSTOMERS                                           IN ENGLISH

                                           SWITZERLAND
                                            IN ITALIAN
LEAN SET-UP
       New Markets

PARENT - CHILD
APPROACH

                 SOLID BASICS

PERSONALISED
MARKETING
                 ALL DEVICES
           FROM THE START
DISCLAIM ER

Certain statements in this communication may constitute forward looking statements. These statements are based on assumptions that are believed to be reasonable at the
time they are made, and are subject to significant risks and uncertainties. You should not rely on these forward-looking statements as predictions of future events and we
undertake no obligation to update or revise these statements. Our actual results may differ materially and adversely from any forward-looking statements discussed in this
presentation due to a number of factors, including without limitation, risks from macroeconomic developments, external fraud, inefficient processes at fulfillment centers,
inaccurate personnel and capacity forecasts for fulfillment centers, hazardous material / conditions in production with regard to private labels, lack of innovation capabilities,
inadequate data security, lack of market knowledge, risk of strike and changes in competition levels.
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