Slides about Zalando´s business transformation from retail to fashion platform. The presentation includes examples for changes in our business processes and new tech capabilities we built up.

1. BUSINESS TRANSFORMATION AT ZALANDO
WE MOVE
FROM RETAIL
TO PLATFORM

2. 2.95
BILLION EURO
net sales
2015
OVER130
MILLION
WHAT WE DO
2
visits per
month
50%
return rates across
all categories
active
customer
OVER
17
MILLION
over
150,000
product choices
~10,000
employees in
Europe
over
1500
brands

3. ☐ FASHION COMPANY?
☐ OPERATIONS COMPANY?
☐ TECHNOLOGY COMPANY?
WHO WE ARE
3

4. WHO WE ARE
☑ FASHION COMPANY
expert for online fashion
4
☐ OPERATIONS COMPANY?
☐ TECHNOLOGY COMPANY?

5. WHO WE ARE
5
☑ FASHION COMPANY
expert for online fashion
☑ OPERATIONS COMPANY
excellence in operations with internal
logistics network
☐ TECHNOLOGY COMPANY?

6. WHO WE ARE
6
☑ FASHION COMPANY
expert for online fashion
☑ OPERATIONS COMPANY
excellence in operations with internal
logistics network
☑ TECHNOLOGY COMPANY
mastermind in technology - driver for
innovation

7. YESTERDAY
WE CONNECTED
TWO PLAYERS

8. BRANDSCUSTOMERS
ONLINE RETAILER
8
“I am looking for a shop which delivers me the best
fashion-products fast.”
ONLINE SHOPPER
“I am looking for opportunities to sell fashion products.”
BRAND MANAGER

9. TODAY
WE CONNECT
FASHION AND
PEOPLE

10. /29
“I just spotted this cool sneaker on
Pharrell‘s Instagram account.”
CUSTOMER
@ pharrell, 5m followers
OUR VISION
10
10

11. /29
“Well, let me see which one it
is.”
ZALANDO
“I just spotted this cool sneaker on
Pharrell‘s Instagram account.”
CUSTOMER
11@ pharrell, 5m followers
OUR VISION
11

12. /29
„It‘s the SUPERCOLOR
SUPERSTAR Sneaker from Adidas
at a cost of €100.“
ZALANDO
12@ pharrell, 5m followers
OUR VISION
12

13. /29
ZALANDO
„It‘s the SUPERCOLOR
SUPERSTAR Sneaker from Adidas
at a cost of €100.“
“A really cool sneaker. Do you
have it in other colours?”
CUSTOMER
13@ pharrell, 5m followers
OUR VISION
13

14. /29
„This sneaker classic is available in all
sort of colours. There is a selection for
you.“
ZALANDO
14
OUR VISION
14

15. /29
ZALANDO
„This sneaker classic is available in all
sort of colours. There is a selection for
you.“
“Wow, I like the green one. How
can I get it within
the next hour?”
CUSTOMER
15
OUR VISION
15

16. /29
ZALANDO
„You can get it at the Adidas Originals
store at Münzstraße, Berlin.“
16
OUR VISION
16

17. /29
ZALANDO
„You can get it at the Adidas Originals
store at Münzstraße, Berlin.“
“That‘s great, but I don‘t have
time now, can you deliver it to
me?”
CUSTOMER
17
OUR VISION
17

18. /29
ZALANDO
„Sure, we can send a bike
messenger and he will be with you in
35 minutes.“
18
OUR VISION
18

19. /29
ZALANDO
„Sure, we can send a bike
messenger and he will be with you in
35 minutes.“
„Perfect, I look forward to
receiving it. And thank you!“
CUSTOMER
19
OUR VISION
19

20. TRANSFORMATION
WE BUILD NEW
CAPABILITIES

21. BRANDSCUSTOMERS
NEW CAPABILITIES – CONNECTING FASHION AND PEOPLE
21

22. BRANDSCUSTOMERS
NEW CAPABILITIES TOWARDS CUSTOMERS
22
„I am looking for new ways of fashion
search. I want to find the right stuff
fast!“

23. BRANDSCUSTOMERS
NEW CAPABILITIES TOWARDS CUSTOMERS
23
„I want to have an app where I
can get engaged with the latest
fashion trends!“
„I am looking for new ways of fashion
search. I want to find the right stuff
fast!“

24. BRANDSCUSTOMERS
NEW CAPABILITIES TOWARDS CUSTOMERS
24
„I want to have an app where I
can get engaged with the latest
fashion trends!“
„I am looking for a way to
buy fashion without a big
footprint!“
„I am looking for new ways of fashion
search. I want to find the right stuff
fast!“

25. BRANDSCUSTOMERS INTERMEDIATES
NEW CAPABILITIES TOWARDS INTERMEDIATES
25

26. BRANDSCUSTOMERS INTERMEDIATES
NEW CAPABILITIES TOWARDS INTERMEDIATES
26
„I want to offer my courier
service to new customers!“

27. BRANDSCUSTOMERS INTERMEDIATES
NEW CAPABILITIES TOWARDS INTERMEDIATES
27
„I want to offer my courier
service to new customers!“
„I am a fashion expert and want
to share my expertise to a lot of
fashionistas!“

28. BRANDSCUSTOMERS INTERMEDIATES
NEW CAPABILITIES TOWARDS INTERMEDIATES
28
„I want to offer my courier
service to new customers!“
ZALON
curated shopping
experience
„I am a fashion expert and want
to share my expertise to a lot of
fashionistas!“

29. BRANDSCUSTOMERS
NEW CAPABILITIES TOWARDS BRANDS
29
INTERMEDIATES
29

30. BRANDSCUSTOMERS
NEW CAPABILITIES TOWARDS BRANDS
30
INTERMEDIATES
30
„We are looking for more
possibilities in the online
business and more insights!“

31. BRANDSCUSTOMERS
NEW CAPABILITIES TOWARDS BRANDS
31
INTERMEDIATES
31
„We are looking for more
possibilities in the online
business and more insights!“
„We want to do marketing
based on deep customer
insights!“

32. BRANDSCUSTOMERS
NEW CAPABILITIES TOWARDS BRANDS
32
BRAND SOLUTIONS
help brands to win online
BRAND SHOP
a stage to tell the brand’s
story
BRAND CMS
putting the brand in the
director’s seat
BRAND ANALYTICS
understanding the brand’s
audience
INTERMEDIATES
32
„We want to do marketing
based on deep customer
insights!“
„We are looking for more
possibilities in the online
business and more insights!“

33. BRANDSCUSTOMERS
NEW CAPABILITIES TOWARDS BRANDS
33
BRAND SOLUTIONS
help brands to win online
BRAND SHOP
a stage to tell the brand's
story
BRAND CMS
putting the brand in the
director's seat
BRAND ANALYTICS
understanding the brand's
audience
INTERMEDIATES
33
„We are looking for more
possibilities in the online
business and more insights!“
ADVERTISING
we connect brands to
consumers
„We want to do marketing
based on deep customer
insights!“

34. BRANDSCUSTOMERS INTERMEDIATES
FASHION PLATFORM - CONNECTING FASHION AND PEOPLE
34

35. BUSINESS PROCESSES
WE DISCOVER
NEW WAYS

36. NEW PROCESSES AS A RESULT OF TRANSFORMATION
36
ZALON
curated shopping
experience ☑ INTEGRATE FASHION EXPERTS
build up an expert network in a scalable way
☑ FIND NEW WAYS OF COMMUNICATION
integrate messenger app to enable direct communication
between customer and styling expert
☑ IMPLEMENT NEW SETTLEMENT POSSIBILITIES
stylists get a provision

37. NEW PROCESSES AS A RESULT OF TRANSFORMATION
37
☑ INTEGRATE EXPRESS DELIVERY EXPERTS
build up an express delivery network in a scalable way
☑ CREATE NEW PROCESSES FOR THE LAST MILE
set up a new express distribution hubs
☑ CHANGE PROCESSES IN THE WAREHOUSE
create new processes for pick, pack & linehaul to
express distribution hubs
SAME DAY DELIVERY
ORDER BEFORE 2PM > GET PACKAGE
BETWEEN 7-9PM

38. NEW PROCESSES AS A RESULT OF TRANSFORMATION
38
☑ MIGRATION TO CLOUD
we focus on a microservices architecture in a cloud
infrastructure
☑ STRENGTHEN COLLABORATION
rollout an internal social media platform to support the
collaboration between teams and enable maximum
transparency

39. CONTACT
39
GUNNAR OBST
DELIVERY LEAD PLATFORM EXCELLENCE
BUSINESS AUDIT - BUSINESS EXCELLENCE - SITE
RELIABILITY ENGINEERING
gunnar.obst@zalando.de
ZALANDO SE
http://corporate.zalando.de
ZALANDO TECHNOLOGY
http://tech.zalando.com