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Joseph Tamola, country manager for Italy explains the model of ecommerce colossus. While in Dublin opens first tech hub outside Germany, Italian employees are zero
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(Photo : Corbis)
It is one of those realities that they could jump off the other side of the Atlantic. But Zalando was born in the heart of old Europe. In Berlin, to be precise, where six years ago Robert Gentz and David Schneider threw an online store to sell shoes. Soon the product range has expanded, the offer has captivated millions of European customers “screaming with pleasure” and accounts have started to give great satisfaction to the co-founders.
At the moment Zalando – become for many synonymous with online shopping – operates in 15 countries and invoice more than two billion euro a year . The numbers released last month told that 2015 will continue on this line, with an increase in revenues estimated between 20 and 25%. The bulk of the 2.2 billion turnover (increased in 2014 by 26%) comes from the German (1.2 billion, up 17% on 2013) but the rest of Europe to push the German locomotive with nearly one billion (+ 37%). The data on the first quarter will come May 12.
At the end of 2014 active customers, those who bought at least once, were 14.7 million (600 thousand more than in previous quarter) while the total exceed the 100 000 000 and the traffic has reached a new high: just to stay on the topic of mobilegeddon , the 48% Access to the platform of fashion is made through smartphones and tablets . During the last holiday season, as we hurried between gifts and ideas, this percentage reached 60% in some countries. The app has seven million downloads . Too bad that the company, a bit ‘inexplicably saw the competitive framework very peaceful, not spread figures on individual countries .
Last news, the inauguration of the first pole technology for research, science and development data out of Germany. Where? In Silicon Docks of Dublin , of course, with lots of good wishes from the Irish Prime Minister Enda Kenny. We spoke with Joseph Tamola , country manager for Zalando Italy and Spain.
We start from the news these days, the opening of a tech hub Zalando in Dublin, the first outside Germany, which will yield 200 new jobs in three years. The reasons for choosing the Irish are evident. It would have been possible to think of a similar investment in Italy?
“ The reasons are related precisely to the place, there is easier to find the right resources. We currently have 750 active developers directly on IT and the idea is to climb this base substantially. Dublin therefore seemed a fairly natural. There are likely other openings and are therefore candidates for other destinations. The first goal is always to find people who can work on big data. Dublin gave us all this . “
Staying in Italy, what is the situation of Zalando? How much turnover, site visits and purchases actually made?
“ Historically we start from there we Dach and our wider base. The rest of Europe is accelerating very quickly. As general numbers, in the first quarter of this year we are going very well and we have growth rates between 27 and 29%. So much so that we had to issue a ‘profit warning’ positive ( Zalando is listed in Frankfurt, nda ), that happens very rarely. What we see in Italy is a growth higher than the rest of the countries. The Italian fashion market as a whole amounted to 50-60 billion in revenue a year, accordingly to Zalando, at the level of demand, it is a priority. Both with respect to consumers but also as an offering of brands. As for the full portfolio of brands we cover everything from ‘fast fashion’ with price positioning medium-low to mid-range (for example Geox) up to a share of the premium segment (for example Michael Kors). The idea that works very well in Italy is in fact that of the ‘mix & amp; match ‘: the customer is less educated Italian online but in terms of taste is more active, has a relationship with fashion than with other markets . “
In terms of employment, how many people employed in Italy? 2015 promises to be a year of growth and have planned a recruitment plan: how many will take place in our country?
“ The international staff working around the Berlin headquarters. There are no employees Zalando in Italy. Warehouses Germans pack comes straight in Italian logistics system. From the perspective of brand management is a model from the significant advantages. So, at the moment there are only three logistics centers in Germany, one in the east and two in the center of the country. But in general we are open to any option, in the long run it can be interesting to think about having a presence closer. We currently offer 150 thousand 150 brand products and make a specific storage for a certain country would require significant adaptation costs. However, in Italy we have a center for the management of returns in Zibido San Giacomo, between Milan and Pavia. But it is a ‘service provider’, so there working employees Zalando. But we interact with Italy in four ways: with operators working in the Italian market, from logistics to marketing partner until the customer satisfaction to the brands. Zalando is the most powerful European market for these companies . “
One of the three logistics centers German Zalando in Erfurt, Thuringia (Photo: Corbis)
But what is the framework on an international scale? Who do you feel most competing?
“ Question difficult. It is impossible in the European context to find a player with the same characteristics as communication, selection and organization. The percentage of online transactions for fashion in Italy is between 1 and 2%. So the problem is not divide the cake but prepare the ingredients. Every company which will arrive on the market will be welcome because that is that we are running a solitary race . “
How is changing the e-commerce clothing? You will manage to overcome traditional obstacles, I think of the sizes of certain products?
“ The interesting thing we’re trying to do is work on Zalando platform concept. The parallel is a bit ‘that with the use of social networks: each, while in some common aspects, has a role in our daily communications. For fashion means starting from the concept of ‘fashion store’, that is to sell products of the current season without forgetting that there are customers or purchasing different situations, such as shopping clubs, which represent interesting options. Or the Zalando Lounge which will start in Italy: a private club where you can find discounts up to 60/70%. Third mode is that councils that bring together different elements, from blogs to previous purchases, to indicate to the user the most appropriate leaders . “
Your return process is a the most basic: do you think is the key to success of Zalando?
“ The basis of success is indeed this. Especially in the German market but also in Italian. Shipping and free return until 100 days have something unique and allow an incredible experience. On this we invest a lot and we make sure that the process is getting easier. I think the labels ready in the package, that allow you to organize the return in a few seconds even to those unfamiliar with the platform. The problem is, if anything, made it a habit to: Italian is a feature that users are buying only when they are very safe. On this we must push even . “
Zalando, I mean the brand, had the good fortune and the merit of being synonymous with online shopping cheap and easy to manage. When count these strategies and how much is left to the “luck” of the Web?
“ Surely the historical moment has been and is favorable. Suffice it to say, for example, the mobile explosion, especially in Italy. The competitive environment is good while on the brand, let me tell you, we are working maniacally . “
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