Zalando and ABOUT YOU are about to join forces which is going to shake up the fashion ecommerce world in Europe. These are two businesses will become a massive entity and dominate the fashion world with Zalando offering to acquire up to 100% of ABOUT YOU’s share capital.
Zalando have cornered the fashion and lifestyle products selling to more than 50 million active customers across 25 markets and they’ll be adding 12 million active customers with ABOUT YOU. Together, Zalando and ABOUT YOU aim to cover a larger share of the 450-billion-euro European fashion market in the long term.
Each brand will retain its distinct identity while leveraging synergies in logistics, payment infrastructure and commercial collaboration. This strategic move will allow the combined entity to provide tailored and separate shopping experiences, effectively meeting the unique needs and preferences of their customers.
All this is exciting enough, but it isn’t the most impactful part of the deal, that comes with the immense power of their combined B2B Operations and this is where they real influence of the combined entities will come.
Zalando and ABOUT YOU B2B Ops Powerhouse
Zalando’s e-commerce operating system is ZEOS, which enables brands and retailers to manage their multi-channel business across Europe within one unified platform, consisting of logistics infrastructure, software and service offerings, regardless of whether they take place on or off the Zalando platform
In B2B, Zalando leverage their logistics infrastructure, software, and service capabilities to support brands and retailers sell their products via various online marketplaces (including of course Zalando). You might have heard of this B2B offering as Alexander Otto from their Tradebyte software unit presented at ChannelX World conference this year with their amazing client Lyle & Scott!
The acquisition of ABOUT YOU comes with SCAYLE, a bespoke solution to serve brands’ and retailers’ own webshops and apps, often the most important sales channels for many brands, even for the ones that are running multi-channel businesses. This includes serving the likes of including Harrods, Manchester United, Deichmann, Fielmann, and FC Bayern.
Looking at the offerings in the round, Zalando and ABOUT YOU together will be able to offer solutions ranging from B2C selling, marketplace management and retailer and brands own website and app solutions and that’s an immense power base in the fashion and lifestyle industry. These combined B2B offering are where we’ll see the real impact of the acquisition in the longer term.
In B2C, we can offer customers and brands distinct and rich shopping experiences. In B2B, combining our complementary software capabilities, Tradebyte and SCAYLE, will create an even more advanced e-commerce operating system that enables brands and retailers to manage their multi-channel business across Europe and beyond.
– Robert Gentz, co-CEO and co-founder, Zalando
