Zalando to reduce global brand portfolio

The Berlin-based retailer Zalando is planning to reduce its global assortment, it confirmed to FashionUnited, following various media reports.

To increase the relevance of its assortment, the online retailer is currently reviewing its brand portfolio. In the past two years, the product selection on the Zalando Fashion Store increased rapidly: The figure grew from 700,000 offered items in the fourth quarter of 2020 to over 1.8 million by 2022.

However, as the needs and demands of the consumer have changed, the online retailer wants to focus more on curation and inspiration now. “This year, the focus is set on profitable growth and simplifying the organisation to become faster and more innovative," Zalando's statement explained.

Zalando wants to become simpler and more efficient

The company wants to reposition itself strategically and become simpler and more efficient, it said. A global review of its brand portfolio is part of that plan.

In the long term, Zalando wants to grow in its existing markets instead of entering new ones, a spokesperson of Zalando said on the phone. In this context, local brands will be given co-determination rights when it comes to the new assortment development.

The statement said: “In order to attract and maintain the attention of customers in the long run, we will increase the local relevance of our assortment and curate it more. Therefore, we are currently reviewing the brand portfolio on Zalando. As this is an ongoing process, we are currently unable to provide any information on how many brands will be affected."

Moreover, all categories and price segments are to be considered in this process. The cutback of the portfolio does not necessarily only affect small brands, the “relevance” is said to be based on the interest and demand of the customers.

“It’s good to have a choice without competition. But what we really want is to offer our customers a relevant and curated selection,” Zalando CEO Robert Gentz said at a press conference in March. The selective curation will be supported by the Berlin-based streetwear platform Highsnobiety, which Zalando acquired last year.

This article was originally published on FashionUnited.DE before being edited and translated to English by Cenia Zitter.