Zalando

What Zalando does

Zalando SE is a publicly traded (Frankfurt Stock Exchange: ZAL) pan-European fashion and lifestyle platform headquartered in Berlin, founded in 2008. The company operates a hybrid retail-and-marketplace model serving approximately 50-62 million active customers across 25 European markets with over 7,000 brands, nearly 2 million SKUs, and a network of 12 fulfilment centres; mobile accounts for over 80% of traffic in 2025. Beyond the core Zalando consumer platform, the group runs Zalando Lounge (members-only off-price channel with 10M+ members contributing 15-20% of group GMV), Zalando Plus (subscription loyalty), the Pre-owned category (authenticated second-hand fashion across 14 markets, expanded to children's wear in 2026), and ZEOS (B2B logistics, Fulfilment Solutions, and the SCAYLE commerce platform acquired through the 2025 takeover of ABOUT YOU, which now powers Levi's global ecommerce).

Zalando's technology stack is built around AI-powered personalization, computer vision, and logistics automation. The Zalando Assistant, a conversational AI styling tool using retrieval-augmented generation, scaled from 6M to 10M users in Q1 2026, while the Virtual Fitting Room reduces return rates by up to 40% in Levi's jeans pilots. The company reports 90% of site content is now AI-generated (driving a 90% reduction in content production costs). Backbone infrastructure includes Hopsworks (AI feature platform handling millions of operations per second), Databricks with Unity Catalog (federated governance, Metric Views semantic layer), and Amazon Redshift for the fast-serving layer. Nomagic AI-powered robotic picking units handle approximately 2 million picks per month, with deployment planned to scale to 50 units across the European network, including a world-first automated shoebox solution.

The business model combines direct B2C retail, third-party marketplace commissions via the Partner Program (1,500+ brands), subscription revenue (Zalando Plus, Zalando Lounge), B2B services revenue (ZEOS, SCAYLE), and retail media advertising through Zalando Marketing Services (ZMS), which contributes roughly 20% of adjusted EBIT. Reported FY2025 revenue is €12.35 billion (+16.8% YoY) on €17.56B GMV, with adjusted EBIT of €591 million (+15.6%). Q1 2026 revenue reached €2.99 billion (+23.8%), and management is guiding to 12-17% sales growth and €660-740M adjusted EBIT for FY2026. Recent strategic actions include the ABOUT YOU acquisition (Nov 2025), DeepAR acquisition (2025), the Vestiaire Collective partnership (May 2026), and €300M share buyback authorization; these occur alongside a network restructuring (Erfurt/Brieselang closures by September 2026), a new BaFin investigation into disclosure practices related to the ABOUT YOU transaction (June 2026), and a recently appointed CFO (Anna Dimitrova, early 2026).

Name

Zalando

Legal name

Zalando SE

Website

https://zalando.com

Company type

Public

Founded year

2008

Operating status

Operating

Headcount range

5,001–10,000 employees

Short description

Zalando is a publicly traded pan-European fashion and lifestyle platform serving 50-62 million active customers across 25 markets with 7,000+ brands, monetizing through retail, marketplace commissions, B2B logistics/ZEOS services, and ZMS retail media advertising.

Ownership category

akta.pro rank

Product category

Online Fashion Retail

NAICS

Shoe Retailers (45821), Clothing and Clothing Accessories Retailers (45811), Clothing, Clothing Accessories, Shoe, and Jewelry Retailers (458)

SIC

Retail-Shoe Stores (5661), Retail-Apparel & Accessory Stores (5600)

akta.pro primary industry

Apparel, Footwear & Accessories Omnichannel (CRAFAEAA)

akta.pro secondary industries

Off-Price Online Apparel & Fashion Retail (Digital-First/Flash Sales) (CRAEABAJ), Apparel, Footwear & Accessories Resale (CRAFAGAA), Athletic Footwear & Performance Apparel Distribution (CRAOAJAH)

Keywords

• Online fashion retail
• Apparel e-commerce
• Fashion marketplace
• Logistics as a service
• Virtual try-on technology

Headquarters

HQ city

Berlin

HQ country

Germany

HQ region

Europe

Offices10 records

Markets served

GTM type

B2B and B2C

Offering type

Digital Commerce or Content

Cost components

Operations, Supply Chain, Personnel, Technology or R&D, Marketing or Sales, Infrastructure

Revenue model

1. B2C Fashion Retail: Direct product sales to consumers through Zalando's online platform and app, combining own inventory and marketplace model with over 7,000 brands and nearly 2 million SKUs
2. Marketplace Commission: Commission revenue from third-party brands selling through Zalando's Partner Program with over 1,500 brands, shifting inventory risk to partners
3. ZEOS B2B Services: B2B logistics and fulfillment services including Zalando Fulfilment Solutions and SCAYLE commerce platform, generating growing revenue from brand partners
4. Zalando Lounge: Members-only flash sale platform with over 10 million members, contributing 15-20% of group GMV through off-price inventory channel
5. Zalando Plus Subscription: Loyalty program with subscription model offering exclusive benefits to drive customer retention and lifetime value
6. Advertising (ZMS): Retail media advertising segment contributing roughly 20% of adjusted EBIT, monetizing Zalando's customer base and platform traffic

Go-to-market motion3 records

Distribution channels6 records

Marketing channels9 records

Core offering

Zalando operates a pan-European online fashion and lifestyle platform that sells apparel, footwear, accessories, and beauty products from over 7,000 brands and nearly 2 million SKUs to approximately 50 million active customers across 25 European markets, combining own-inventory retail with a third-party Partner Program marketplace. The platform is augmented by the ZEOS B2B division (logistics, fulfillment, and SCAYLE commerce platform services for brands) and Zalando Lounge off-price channel, supported by 12 fulfillment centers and AI-powered personalization, virtual try-on, and advertising services.

Product overview

Zalando operates as a pan-European fashion and lifestyle platform combining B2C retail and B2B services across 25 markets with approximately 50 million active customers. The platform consists of the core Zalando Platform (serving over 7,000 brands and nearly 2 million SKUs), augmented by ZEOS (B2B logistics division including Zalando Fulfilment Solutions and SCAYLE commerce platform), Zalando Lounge (off-price flash sale channel with 10+ million members), and Zalando Plus (loyalty subscription). Key technology features include the Zalando Assistant (generative AI styling tool with 10 million users), Virtual Fitting Room (AR try-on reducing returns by 40%), and Pre-owned category (authenticated second-hand fashion in 14 markets via Vestiaire Collective partnership). The company generates revenue through retail operations, partner marketplace commissions, and ZMS advertising services (contributing ~20% of adjusted EBIT). SCAYLE commerce platform acquired via About You now powers Levi's global ecommerce operations.

Differentiator

Problem solved

Functional benefit

Brands

• Pre-owned: Authenticated second-hand luxury fashion category expanded to children's fashion across 14 European markets
• ZEOS
• SCAYLE
• Zalando Assistant
• Virtual Fitting Room

Products and services

• Zalando Online Platform and App
• ZEOS B2B Services
• SCAYLE Commerce Platform
• Zalando Lounge
• Zalando Plus
• Zalando Partner Program
• Zalando Marketing Services (ZMS)
• Zalando Pre-owned
• Virtual Fitting Room
• One Retail Hub
• DeepAR AR Try-on Technology
• Zalando Kleider Private Label

Quantifiable outcome

• 40% reduction in return rates through virtual fitting room pilots with Levi's
• +7 more outcomes

Named customers4 records

Segments5 records

Ideal customer profiles4 records

API detail

Has API

No

API docs

API detail

Core technology

AI maturity

App detail

Integration17 records

AI capability22 records

Feature9 records

Partnerships

13 partnerships are on record, tiered core and minor.

• Vestiaire CollectivecoreStrategic or Co-development Partner · 28 May 2026Zalando partnered with Vestiaire Collective to bring authenticated second-hand luxury fashion to Zalando's platform across 14 European markets. The collaboration opens Zalando's Pre-owned category to its Partner Program for the first time, combining Vestiaire Collective's authentication infrastructure of over 100 authenticators and 50 quality controllers with Zalando's platform reach.
• NomagiccoreTechnology or Integration · 19 March 2026Zalando announced plans to install up to 50 AI-powered Nomagic robots across its European fulfilment network, scaling up an existing partnership following a successful pilot that achieved 100,000 picks per day. The Shoebox Picker solution addresses traditionally difficult automation challenges with loose-lid shoeboxes using AI-driven computer vision and specialized grippers.
• Copenhagen Fashion WeekminorStrategic or Co-development Partner · 19 March 2026Zalando hosted a panel at Copenhagen Fashion Week AW26 alongside Vogue Business to discuss the challenge of online fashion fit and showcase virtual fitting room pilots with Levi's.
• TrusTrace / One Retail HubminorStrategic or Co-development Partner · 10 February 2026Zalando co-developed the Retailer Brand Due Diligence Questionnaire and One Retail Hub digital platform with Cascale and Fair Wear to streamline Human Rights and Environmental Due Diligence compliance. Partners include About You, ASOS, Boozt, Ellos Group, New Look, and The Very Group.
• ABOUT YOUcoreStrategic or Co-development Partner · 1 November 2025Zalando acquired About You in November 2025, bringing proprietary SCAYLE commerce platform and synergies expected to support full-year 2026 targets of 12-17% sales growth and €660-740 million in profit. €10 million in synergies achieved in Q1 2026.
• DeepARcoreTechnology or Integration · 8 April 2025Zalando acquired London-based startup DeepAR in 2025 to accelerate its ecosystem strategy. The acquisition aims to enhance Zalando's digital offerings with 3D content and experiences, including AR try-on products and a digital twin catalog. DeepAR's technology provides virtual makeup and fashion try-on capabilities.
• HighsnobietycoreStrategic or Co-development Partner · 13 June 2022Zalando acquired a majority stake in Highsnobiety, a global fashion and lifestyle media brand, for over €158 million. The acquisition aims to combine content and commerce capabilities to enhance customer engagement through storytelling and curated fashion experiences.
• Levi'scoreTechnology or IntegrationZalando's SCAYLE commerce platform (acquired through About You) now powers Levi's global ecommerce operations across the U.S., Canada and Europe, representing a significant enterprise customer win for ZEOS B2B services.
• HopsworkscoreTechnology or IntegrationZalando runs its AI infrastructure on Hopsworks' platform, Europe's only Lakehouse and AI platform company. The platform handles millions of operations per second to support Zalando's personalization systems and peak load demands during high-traffic periods like Cyber Week.
• DatabrickscoreTechnology or IntegrationZalando built a unified data foundation on the Databricks platform to govern data, standardize metrics, and enable natural language analytics. The implementation uses Unity Catalog for federated governance with a dual-catalog pattern separating data creation from data consumption.
• Google (Universal Commerce Protocol)coreTechnology or IntegrationZalando is one of two European launch partners for Google's Universal Commerce Protocol (UCP), an open standard enabling AI agents to manage the full shopping journey from discovery to purchase. Zalando claims to be the 'number one referred fashion platform by conversational AIs.'
• Amazon (Redshift)coreTechnology or IntegrationZalando migrated its fast-serving data warehouse layer to Amazon Redshift to improve performance, scalability, and operational stability during peak periods like Cyber Week.
• About YoucoreStrategic or Co-development PartnerZalando's takeover of About You was one of the notable German public takeover transactions in 2025, strengthening its position in the European fashion e-commerce market through expanded customer reach and enhanced digital commerce capabilities.

Scale indicators29 records

Recent moves6 records

Expansion highlights7 records

Direct peers

• ASOS: ASOS is a UK-headquartered pure-play online fashion retailer serving European customers with a marketplace model and own-brand assortment. It competes directly with Zalando's core platform in DACH, UK, France, and the Nordics, with comparable use of AI personalization and logistics investments.
• Boohoo Group: Boohoo operates multi-brand online fashion platforms (Boohoo, PrettyLittleThing, Debenhams) targeting European 18-40 demographics. It overlaps with Zalando's value-segment and Zalando Lounge offering, and shares the same third-party brand plus own-label marketplace model.
• Mytheresa: Mytheresa is a Munich-based luxury and contemporary online fashion retailer serving European and US customers with curated brand assortment. It competes with Zalando's premium assortment and Zalando's Vestiaire Collective Pre-owned push into authenticated luxury.
• Boozt: Boozt is a Nordic-headquartered online fashion and beauty marketplace operating across Northern Europe. It is comparable to Zalando's platform model in regional scope and tech-stack maturity, and was a partner in Zalando's One Retail Hub compliance initiative.
• The Very Group: The Very Group operates Very.co.uk, a UK online retailer combining fashion, home, and beauty with a credit-based payment model. It was a co-developer on Zalando's One Retail Hub and competes in the UK online fashion segment.

Broad incumbents

• H&M Group: H&M is a global fast-fashion incumbent with both extensive physical retail and a growing online channel across Europe. It overlaps with Zalando as both a wholesale brand partner and a direct competitor in affordable fashion, and competes with Zalando Lounge on value.
• Otto Group: Otto is Germany's largest B2C online retailer by revenue, operating multi-category platforms (Otto.de, Bonprix, Witt) including fashion. It is a direct DACH competitor to Zalando with comparable marketplace structure, and is also a logistics customer via B2B services.
• Amazon (Fashion): Amazon Fashion is a fast-growing segment of Amazon's European marketplace with broad apparel assortment, Prime logistics, and aggressive pricing. It competes with Zalando on selection and delivery speed and is a structural threat across all 25 markets Zalando serves.

Regional players

• New Look: New Look is a UK-focused fast-fashion retailer with both physical stores and online channels. It is a partner on the One Retail Hub due-diligence platform and competes with Zalando in UK value fashion, though its geographic concentration is narrower.

Others

• Shopify: Shopify is a commerce platform powering many direct-to-consumer fashion brands in Europe. It is thematically comparable to Zalando's SCAYLE B2B commerce platform (both serve brands' end-to-end ecommerce needs) and is also a Google UCP launch partner alongside Zalando.

Market position

Strengths5 records

Weaknesses5 records

Competitive moat7 records

Key risks6 records

Key highlights7 records

Customer concentration

• Xx.com/zalandotech
• YouTubeyoutube.com/zalando
• Facebookfacebook.com/zalando
• LinkedInlinkedin.com/company/zalando
• Instagraminstagram.com/zalando

Compliance3 records

Revenue estimate

Valuation estimate

Number of profiles

Profiles15 records

Subsidiaries5 records

Funding overview

Funding rounds8 records

Investors10 records

Funding detail is available on the Subscription and Enterprise plan.Contact sales →

M&A10 records

Investments17 records

M&A and investment is available on the Subscription and Enterprise plan.Contact sales →

Frequently asked questions about Zalando