- With an ambition to reach €20 billion of GMV in 2023/2024, the company will need to more than double its current €8.2 billion GMV.
- Much of the growth will come from the Partner Program, which is expected to make up 40% of GMV in 2023.
- Through ZMS and ZFS extensions of the program, the company will onboard more brands into the platform, eventually driving more GMV.
- The increase in order volume, as a result, will also drive efficiency in fulfillment, which still has room for improvement.
The Berlin-based Zalando (OTCMKTS: OTCPK:ZLNDY) presents an interesting investment opportunity in the fashion eCommerce space. With €8.2 billion GMV (Gross Merchandise Value) as of 2019, it is the current market leader in Europe. The executive team, which still consists of the co-founders, has also executed very well. The company consistently grows its top-line by +20% while maintaining strong unit economics. Going forward, we see various opportunities the company can tap into to achieve its €20 billion GMV target in three years. In particular, we expect the Partner Program strategy to be the key growth driver.
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