This presentation deals with the growth issue in e-commerce. It describes two different strategies implemented by two leading european fashion e-commerce company Zalando and Asos. Business model analysis, but also, internationalization, financial perspective included

1. How to achieve growth
in e-commerce ?
⏐Growth hacking⏐ Zalando ⏐ Asos ⏐Case study
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2. Growth issues in e-commerce
• Growth is a very important strategic issue
– Break-even point requires high volume (fixed costs issue)
– Volume increases profitability by enabling purchasing
price reduction (negotiating power gross margin)
• How to achieve growth ?
– Diversification (i.e. catalog extension)
– Internationalization
• From local to Europe
• Global from scratch
– Economy of scale generation
– Marketplace
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3. Amazon growth model
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Source: Amazon

4. A european strategy
Source: all data from Zalando public financial statements
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5. Zalando Business Model
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6. Zalando Business Model
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Web site
Mobile (40% MAU)
Shop (Berlin)
Private Label
Online
marketing
Data-driven
Sourcing
IT platform
Warehouse
Brand
Intl payment
platform
Third party
fashion brands
(data driven
relations)
11 logisitics
partners
Marketing costs 13,6%
Fulfillment costs 23,4%
14
european
countries
Women
Men
150 000 styles
1 500 brands
Local
Global
Fast
Private Label
High Avaibility
Better selection
Free delivery &
returns
Personalized
shopping
experience
Gross Margin 40 to 60 %
Net margin 1,2 %

7. Steps in business development
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Source: Zalando

8. European growth strategy
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Source: Zalando

9. Market size⏐ Brand awareness
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Source: Zalando

10. Zalando Key metrics
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53,2%41,5%
+11,5%
37%
Increased Brand awareness &
quality of execution increase
Repeat purchase
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11. Economy of scale generation⏐1
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Source: Zalando

12. Economy of scale generation⏐2
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Source: Zalando

13. Marketing costs ⏐Loyalty
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Source: Zalando

14. Group EBIT Margin
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Source: Zalando

15. Zalando Key Success Factors
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Source: Zalando

16. Zalando Growth’s vision
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Source: Zalando

17. Zalando: Concluding remarks
• High level of economy of scale
– Fulfillment capacities
– IT platform
• Diversification in assortment
• European markets extension
• Strong branding that reduces Customer cost of
acquisition
• Quality in operations execution that drives customer
loyalty
Ø High level of scalability
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18. ASOS Business Model
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19. A global strategy
Source: all data from Asos public financial statements
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20. A worldwide strategy
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Source: ASOS

21. ASOS Business Model
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9 Web sites
Mobile (46% MAU)
Sourcing
Warehouse
800 Third party
brands
Tmall (China)
Marketing costs 5,7%
Fulfillment costs 22%
Worldwide
(200
countries)
20
somethings
Women
75 000 items
Newness
Gross Margin 49,5%
Net margin 4%
Private Label
(50%)
As seen On me
Recommendations
Rewards
Personal stylist

22. ASOS Internationalization
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Source: Javelin Group, Planning for Europe, eCommerce futures, 5th February, 2014

23. A worldwide expansion
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Source: ASOS

24. International strategy
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Source: Javelin Group, Planning for Europe, eCommerce futures, 5th February, 2014

25. A difficult path to master operational costs
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Source: ASOS

26. ASOS Key metrics
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Source: ASOS

27. ASOS Vison of Growth strategy
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Source: ASOS

28. Growth : audience monetization
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29. ASOS: concluding remarks
• From UK to Worldwide sales
• Categories extension
• Opening China market with Tmall
• Marketplace opening
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