Zalando’s Laura Toledano says this is key moment to forge strong relationships with brands

After a tough fiscal 2022, Berlin-based fashion e-tailer Zalando started to restructure in 2023, while inflation was causing fashion consumption in Europe to slow down. Zalando, according to market research firm Nielsen the second-largest fashion e-tailer in France by value, is beginning to show signs of recovery in fiscal 2024. Laura Toledano, Zalando’s general manager France, UK and Ireland, has talked to FashionNetwork.com about the group’s strategy in the highly segmented French market.

FashionNetwork: After two tough years for fashion, and Zalando too, how do you view the economic climate’s impact on Zalando’s business and positioning?

Laura Toledano: It is true that the economic situation is characterised by widespread tension. It’s tough going, unfortunately, for some industry players. Fortunately, Zalando has a solid strategy, and extremely strong fundamentals, which enable us to react efficiently and rapidly, focusing always on our customers. We experienced challenges in 2023, but 2024 is looking much better, as our initial results are showing. We’re doing well especially in France. On average, our growth [in France] so far is better than that of the group as a whole.
This is mainly due to the quality of our customer base, which is always improving. Our customers are more engaged, they spend more and better. It’s a consequence of what we’re offering them. It’s a consequence of the way we make our site stimulating, notably with promotional campaigns, but also because we’re investing extensively in our brand. For example via capsule collections, like the recent one with K-Way, which encourage customers to buy at full price. We’re working to inspire customers to buy, adding a little poetry to their shopping. This pleasure in buying and rediscovering products means that, for the time being, 2024 is looking pretty good.

FNW: Are market challenges influencing the relationship between Zalando and fashion brands? 

L.T.: Two things stand out in the current economic climate. Some fashion brands and even pure-players are experiencing difficulties. Unfortunately, more and more of them, also among childrenswear and luxury labels. At the other end of the spectrum, Asian ultra-fast-fashion giants are being extremely disruptive. It’s increasingly necessary for brands and e-tailers like Zalando to work together, to be agile, innovative and creative.
Technology is a tool that must be deployed in concerted fashion, since [e-tail] is currently a growth driver for these brands, in France and internationally. For them, the opportunity is that we have the fire-power and the investment capability, and they can count on us to access all the latest innovations, as well as our customer base, currently some 50 million consumers in Europe. So yes, this is a key moment for Zalando to forge strong relationships with partner brands. That’s why we held a “partner day” in France [on September 11 in Paris]. The time was right for it.

FNW: Have the current economic challenges prompted brands to make new demands and have new expectations vis-à-vis an e-tailer like Zalando?

L.T.: We’re collaborating closely with all our brands. But I can say that a growing number of brands are now spontaneously asking to feature on our site, including high-end labels. A few years ago, it was hard to convince premium, designer and luxury brands to do business with us. Nowadays it’s easier, because we have done extensive work on communication and the quality of the products on offer, and it’s bearing fruit. 

FNW: Pure-players that positioned themselves in the high-end and luxury segments have experienced difficulties. Has this changed the approach of brands that were wary of mixing with names from different segments?

L.T.: We are increasingly realising that our customers have “multi-level” needs. They don’t buy just sportswear, they’re not looking for childrenswear only, they aren’t luxury consumers tout court. They tend to buy, and need, all sorts.
Our advantage is having everything under one roof. And the fact that we don’t care for product quality only in higher-price categories. [Zalando will exclude brands that don’t generate interactions]. This is clearly an asset in today’s tough environment.

FNW: Sectors like sportswear, childrenswear and luxury goods, until recently, used to feature plenty of multibrand retailers, which have been beset by difficulties. Do you think Zalando is now offering the same assortment that multibrand retailers previously did?

L.T.: Yes, in part, with the difference that we feature all segments in one place. I’m often asked who my number-one competitor in France is. My reply is always the same: I don’t have one single competitor. I have different competitors depending on the category and price range.
This kind of fragmentation is very specific to the French market. The challenge for a site like ours is to respond to this fragmentation in a clean, attractive and authentic way. That’s where I think we score points with our brands and customers: If you browse our app and access the sportswear, luxury or designer sections, you’ll see that the layouts are different. You are no longer on the same site, with the same atmosphere, even if you find the same tools and the customer account is the same.
In future, and I can’t reveal everything yet, we’ll go even further with this experience, with childrenswear and a range of “family” products. 

FNW: Does this mean brands are no longer afraid, as they have been for a long time, of drowning in the huge assortment of a big e-tail site?

L.T.: Honestly, it can still happen. Our assortment is extremely broad. If brands want to stand out from the crowd, they too must invest time to provide written and visual content to improve conversion performance.
We have refocused the offer on relevant brands, and we have also adapted our technology in this direction. We’re able to lead to any specific brand customers who are already interested in similar brands. Technology makes customisation possible. Our idea is not to offer one experience to 50 million customers, but thousands of different experiences. The studies we carried out with Nielsen show that there is little cannibalisation between us and our brands, because we have different audiences. 

FNW: Zalando’s audience is predominantly female, and it’s well-known that men have a different approach to searching and shopping. How do you address these nuances in your customer journey?

L.T.: We don’t think we’re specifically targeting women when we build our product range. But it’s a fact that men are more loyal as customers. Once they find a site they like, they always tend to buy in the same place, and spend more. We’re aiming to grow the share of men who shop on Zalando. But we don’t see this as a major shift, simply as an opportunity, a new growth driver. It’s mainly about how we focus on SEO, and the way in which we segment our products. Besides, men too are increasingly looking for inspiration.