Zalando in a Deal with Gap
Fashion chain ‘Gap Inc.’ has struck a deal with Europe’s largest online fashion retailer ‘Zalando’ to sell its core brand from next May, expecting to reach more consumers, particularly in markets where it has no physical stores.
The US company already delivers to 24 European countries from its own website and has more than 200 stores on the continent. It is, however, not present in key markets such as Germany.
Berlin-based Zalando, which listed on the Frankfurt stock exchange last month, started out selling shoes in 2008 and now ships 1,500 brands to customers in 15 European countries, with Britain’s Top Shop one of its latest big-name additions.
“Many customers in Europe still don’t have access to the Gap brand,” Zalando co-founder, Mr. David Schneider said. “We offer a platform to enter 15 markets in local languages, in local currency, with free shipments, returns and so on.”
Gap, which runs more than 3,500 stores worldwide, is trying to reduce its dependence on the highly competitive North American market and plans to open 40 stores in India at the same time as it strengthens in e-commerce.
Gap’s bigger European rivals Inditex and H&M are also investing in e-commerce but are focusing on their own sites and are not listed on Zalando.
“We have to be where are customers are. Zalando is the most visited fashion e-commerce site in Europe,” Mr. Stefan Laban, responsible for Gap’s international business said. “We want to be one of the biggest brands on the site.”