Here’s How Zalando Is Driving Sustainable Values-Based Retail
The direct-to-customer retail business model has been growing in popularity in recent years as brands the world over discover the benefits of targeting the end user exclusively.
According to eMarketer, growth in the direct-to-customer space topped out at 62.5% in the UK and Europe last year representing a serious move towards this method of ecommerce in those markets. This growth has been attributed to a perfect storm of factors including the surge in ecommerce in general brought about by the COVID-19 crisis, the mobile focused shopping experienced favored by direct-to-customer brands, and the rise of online marketplaces.
As one such marketplace, Zalando has been in the vanguard of this growth and has been succeeding due to its sharp focus on sustainable value-based buying and connected retail.
Zalando
Operating out of Berlin, Germany, Zalando understands that today’s customers don’t only want convenient online shopping and competitive prices, but also want to shop with brands which reflect their own personal worldview and ethical perspectives. In fact, many retail customers, especially those belonging to younger generations such as Millennials and GenZers, are willing to pay more to shop with brands whose ethics align with their own.
Working on this premise, Zalando is creating an ecommerce ecosystem which is focused on nurturing a shopping community with social beliefs and sustainable values. sustainable fashion options, focusing on being carbon neutral, and opt-in options for value-based purchases, are all part of the Zalando ethos and it seems to be resonating with shoppers.
The Zalando smartphone app has been downloaded over ten million times on Android systems, and more than two million on iOS devices.
The fashion industry in one of the world’s biggest polluters. The customer demand for fast fashion has created an industry where items are designed and manufactured to be cheap and disposable, leaving billions of items rotting in landfills. However, Zalando combats this by partaking in a practice which may seem obvious, but few brands actual engage in – talking to its customers.
Through these conversations, Zalando discovered that its customers’ two biggest environmental concerns were reducing the number of plastics we produce and eco-friendly packaging for products. This drove Zalando to transform its packaging to dramatically reduce waste and use recyclable and compostable materials.
And things didn’t stop there. Zalando discovered through these conversations that not every consumer understood what sustainability means in the context of the fashion industry. To fill this gap in customer knowledge, Zalando launched a values-based browsing experience that empowered customers to browse products based on the things they care are about, including water conversion, reusable material, animal welfare, emission reduction, worker wellbeing, and how to extend the life of fashion using organic, recyclable materials.
"Sustainability is defined as meeting our own needs, without compromising the ability of future generations to meet their needs," said Joint CEO of Zalando, David Schneider.
Care and Repair
Another way Zalando is making its operation more sustainable is by extending the life of fashion items through its new Care and Repair service.
Currently being piloted in Zalando’s home nation of Germany, the Care and Repair program has partnered with London-based startup and retail app Save Your Wardrobe to offer customers an innovative and convenient method of getting their favorite clothes repaired and keep them turning heads for years after purchase.
Through its own research, Zalando discovered that 60% of customers thought extending the lifespan of clothes through repairs was important. Sweden is the European frontrunner when it comes to this practice with over 60% of people wearing repaired clothing, with Poland running a close second. In the Netherlands, Germany, and France around 50% of customers wear mended items.
"While it is clear that there is a growing desire across all markets to use mending and proper maintenance as a way to prolong the life of wardrobe staples, there are also roadblocks in knowledge and accessibility that still create a gap between attitudes and behavior," Zalando said regarding its findings. "We aim to be the starting point for fashion."
Through an app, Zalando customers will be able to locate local dressmakers and book appointments to have their clothes repaired. The Care and Repair program will also allow customers to send their items for repair by post for extra convenience, with Zalando handling the logistical arrangements from its end.
Final Thoughts
Making sure ecommerce offerings align with the ethics of customers is going to become ever more important as the buying power of younger generations increases. Once GenZers and Gen Alpha become the dominance forces in the market, these practices will no longer be optional for online retail brands.
Values-based and sustainable retail are certain to be part of the conversation at eTail Europe 2022, taking place in April at the Queen Elizabeth II Conference Centre, London, UK.
Download the agenda today for more information and insights.