Zalando to open tech site in China; no current plans to enter the market

Zalando said on 6 August it would open a new tech site in China’s tech-hub Shenzhen, but it was not planning to expand its marketplace to China at this point in time.

The Chinese tech centre would allow the German online fashion retailer to tap into local expertise in social commerce and integrate that with the company’s knowledge of the European e-commerce market, finance chief Sandra Dembeck said on an investor call following Zalando’s second-quarter results.
Zalando said it currently had no plans to expand its e-commerce platform to China.

The company, which serves around 50 million active customers in 25 markets across Europe, has recently focused on higher-priced brands and sportswear as it competes with low-priced retailers such as Shein, introducing its own sports collection and launching sports brands such as Lululemon, Hoka, and On Running in recent quarters.
These premium sportswear brands are seeing robust growth in China, as health and wellness have become a priority for aspirational, middle class consumers since the pandemic, with many people taking up activities such as yoga, hiking and running for the first time.

“We are still focused on tapping into the growth opportunities that Europe has to offer and are sure that our tech site in China will contribute to achieve our goals,” Zalando said in an email.

Growth in China’s once-thriving e-commerce industry has slowed recently, dragged by a sluggish economy.