Zalando expands its premium category by adding more luxury designers
Zalando taps further into the luxury fashion market through adding high-end designers Moschino Couture, Alberta Ferretti, Proenza Schouler and White Label to its premium category. The online giant also aims to triple its GMV of the premium and luxury segment by 2023.
With the new initiative, Zalando makes a strong move into the €38 billion premium market, which represents nine percent of the European fashion market.
Lena-Sophie Röper, Buying Director of Premium & Luxury at Zalando said: “Premium is one of the fastest-growing business entities within Zalando. By expanding into a high-end premium profile, we make further progress on our mission to become the Starting Point For Fashion, and leverage the potential of the European premium online market.”
“Zalando has the largest customer base of GenZ and millennials in Europe. These groups are predicted to make 55% of all luxury purchases by 2025. This is very interesting for brand partners, as they can access new customers through the designer destination within Zalando."
According to industry studies, the online share of premium and luxury fashion goods in Europe is projected to grow. Within Zalando, the premium category, including Wholesale and the Partner Program, grew by 35 percent from 2018 to 2019. The online marketplace expects the category to continue to grow above average.
Over the next four years, Zalando aims to roughly triple its Premium and Luxury GMV with an annual growth rate of about 30 percent. The global giant's venture into luxury and premium fashion is based on the strong demand driven by Generation Z and Millennial consumers who tend to shop high-to-low outfit mixes with luxury items.
Currently Zalando’s premium assortment consists of over 260 brands including names like Victoria Beckham, Vivienne Westwood and MM6.