Download - 2013 Zalando
Zalando - Europe's market leader in fashion eCommerce
April 2013
Mega trend:
Online fashion is the second wave of eCommerce, following the first wave of
commodity products like books and electronics, with a future share of retail of > 25%
Business opportunity:
Online fashion offers a unique combination of high revenue potential (€ 500bn
market in Europe) and highest gross margins in eCommerce (50-60%)
Market leadership:
Zalando has become the leader in European fashion eCommerce by being the
fastest growing European company ever, with >€ 1 billion in net sales in 4th year
Zalando is driving a mega trend, bringing fashion
eCommerce to Europe
2
• Expansion into other fashion
categories (clothing,
accessories, sports, home)
• Expansion into private label
• Subsequent geographic
expansion across Europe
• Zalando now active in 14
European markets
• Broadest product selection
(third party brands) – not
discount model
• Convenient shopping (free
shipping, 100 days returns)
• Fast brand building
Market:
€ 10bn
Market:
€ 100bn
Zalando’s path started with shoes in Germany – subsequent
expansion into other fashion categories and countries
3
2008/09: Germany’s leading
online shop for shoes
2010: Expansion to other
fashion categories
2011/2012: Leadership in
European fashion eCommerce
Market:
€ 500bn
Key achievements of Zalando within
the first four years of operation
① Europe’s fastest growing company with over €1 billion¹ in sales after 4 years
• 4% market share in German shoe market (most mature market)
• Clear market leader in European fashion eCommerce
② Best in class offering and operations
• Fashion destination with the best fashion offer and shopping experience
• Proprietary logistic infrastructure and leading IT team
• Focused, data driven organization forcing constant optimization
③ Core DACH markets reached break-even in 2012 after 4 years
• Clear path to profitability
• Positive margin trend in all regions
④ Strong management team and well capitalized business
• Motivated and experienced management team led by co-founders
• Conservative balance sheet with strong equity ratio of >50%
• Supportive shareholders and banks
¹ DACH = Germany, Austria, Switzerland. 4
Net sales
(€ million)
• 4% market share in
German shoe market
• New categories1 and
countries gaining
importance fast
• ~ 50% of
revenues outside
Germany
• ~ 50% of
revenues in new
categories
¹ Categories outside of shoes (clothing, accessories, sports, home, etc.) 5
1 Zalando is the fastest European company ever to reach
€ 1 billion in sales, four years after being founded
1,159
150
6
510
2009 2010 2011 2012
Zalando is active in 14 European markets
with brand recognition of over 90% in key markets
Aided brand awareness in core
markets¹ (Percentage) Targeting total
population of
>400m people!
zalando.se
zalando.co.uk
zalando.nl
zalando.fr
zalando-prive.fr
zalando.es zalando.it
zalando.be
zalando.at
zalando.ch
zalando-lounge.de
zalando.de zalando.pl
zalando.no zalando.fi
zalando.dk
93
94
94
92
90
94
93
88
94
91
95
95
CH
AT
IT
FR
NL
GE
Shoes Fashion
¹ As of January 2013.
Targeting
population of
>400 million
6
2
Private labels
(Examples)
Third party brands
(Examples)
Partner program
• Higher availability
• Better selection
7
Online fashion destination with >150,000+ styles offered by >1,500 brands
Zalando has become the fashion destination on the
internet with a broad assortment… 2
¹ Source: SEMrush (traffic from the first 20 search results on Google for fashion websites in Germany, France, UK, Spain and Italy), ComScore (H2 2012 Europe).
² Source: google analytics.
Visits per month²
(million)
8
… making Zalando Europe’s most visited fashion website
and one of the top 10 most visited retail websites¹ 2
Mar
Jan
Nov
Sep
Mar
Jan
Nov
Sep
Jul
May
Mar
Jan
Nov
30
20
10
0
Jan
Nov
Sep
Jul
May
100
90
80
70
60
50
40
Sep
Jul
May
Mar
Jan
Nov
Sep
Jul
May
Zalando
LAUNCH
New Country:
Austria
Launch
First TV spot:
Warning
Launch
Clothing
Launch Zalando
Lounge
Launch
Beauty Launch
Sport
New Country:
Netherlands
New Country:
France
Launch
Premium
New Country:
Italy
New Country:
UK
Launch
News & Style
EFFIE Award
New Country:
Switzerland
Launch
Zalando
Magazine
Launch:
Home Cooperation
„Germany‘s next
Topmodel“
New Countries:
Sweden
Belgium
New Country:
Spain
New Countries:
Finland
Denmark
New Country:
Norway
New Country:
Poland
TV Spot
Christmas
Erfurt logistic
center opens
2008 2009 2010 2011 2012 2013
>90 million website visits per month
More than 13 million customers have ordered until today
Phase 1
(2009-2010)
Phase 3
(2012-2013)
Großbeeren
(Winter 2010)
Brieselang
(Summer 2011)
Erfurt
(Summer 2012)
Mönchengladbach
(Summer 2013)
• First logistics center
established
• Operated by logistics
partner DocData
• 30,000 sqm
• First logistics center
operated by Zalando
• 30,000 sqm
• First logistics center built
to Zalando needs
• Designed and operated
by Zalando
• Largest eCommerce
logistics facility in
Europe
• 75,000 sqm (+45,000
sqm expansion ongoing)
• Second large logistics
center construction
• Same concept used as
in Erfurt
• Test operations to start
in summer 2013
• 75,000 sqm (+45,000
sqm expansion option)
9
Phase 2
(2011)
• Logistics centers are located in central locations in Germany, servicing all European countries
• Zalando is leasing land and buildings to limit capital investment
• Combined capacity of >250,000 sqm operational / in construction (~300,000 sqm including option)
Zalando has shifted from outsourced logistics to a proprietary
logistics network to ensure best in class and low cost delivery 2
10
One of Europe’s leading technology teams with about 300 IT specialists
Unique IT platform: ZEOS uses modular approach to build
highly scalable IT platform 2
2012 2011
EBIT margin
1 DACH = Germany, Austria, Switzerland
• Core DACH markets1
reached break-even after
only four years of
operation
• Positive margin trends in
all regions as customers
are loyal and efficiency is
improved
• Strengthened European
market leadership
(added 7 markets for total of
14 markets)
11
2010
Continuous margin improvements with DACH markets
reaching break-even in 2012 3
-7%
-12%
-15%
Equity Ratio of >50% at the end of 2012e*
* 2012 number is preliminary and unaudited.
Shareholder base (equity) Banks (debt)
12
Management team – responsible for Zalando in three dimensions
• Robert Gentz, Co-Founder and Managing Director Zalando as an internet technology company
• David Schneider, Co-Founder and Managing Director Zalando as a fashion company
• Rubin Ritter, Managing Director Zalando as a process machine
+ Extremely strong second / third level management team
Strong management team and well capitalized business –
backed by a highly aligned shareholder base and banks 4
Zalando’s operational excellence and strong customer focus
have been and will be key differentiators against competitors
13
Key differentiators along the value chain
Strong relations with
third party brands
Private labels fashion & sourcing
competence
Online marketing expertise
International payment platform
Proprietary logistics network
KPI culture & implementation speed
Proprietary & scalable IT platform
Customer convenience model
Outstanding brand recognition