Amazon or Zalando who will dominate in Europe
Amazon is an American electronic commerce and cloud computing company that was founded on in 1994 by Jeff Bezos and is based in Seattle, Washington. It is the largest Internet-based retailer in the world by total sales and market capitalization. Amazon has separate retail websites for the United States, the United Kingdom and Ireland, France, Canada, Germany, Italy, Spain, Netherlands, Australia, Brazil, Japan, China, India, and Mexico.
Zalando is a German electronic commerce company seated in Berlin. The company maintains a cross-platform online store that sells shoes, clothing and other fashion items. The company was founded in Germany in 2008, and since has begun operating in fourteen European countries and worldwide with spin-offs and subsidiary companies.
Today, Zalando is the market leader in Euorpe, Amazon just behind. But the American company is ramping up its fashion activities in Europe. One thing is for sure : Amazon may be gaining market share quickly, Zalando is not giving up. The ecommerce player is building a warehouse in Paris, which will cut down the delivery time in France with a day or two, and it will also launched its first company-owned distribution center. This 375,000 square meter facility will be located in Poland and will handle deliveries to cities across Europe. Zalando has also increased the number of articles it sells by about a third, to 200.000.
It seems that for now, Zalando has an advantage over Amazon in Europe. The two ecommerce companies have about the same number of brands in Germany, but in the United Kingdom, Zalando offers nine of the top 20 womenswear brands, while Amazon stocks just four. And according to an analysis by Sanford C. Bernstein, much of what Amazon sold in Europe was “out of season and discounted”. Almost 60 percent of Levi’s products on Amazon UK and Amazon Germany were discontinued merchandise, while at Zalando it’s just 14 percent.