Non-Classroom Based Activity 1: CASE STUDY II.

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By Anna Magnusdottir, NIUB: 2031419

1. Compare and evaluate Zalando’s and Asos’ key competitive advantages in the
world online apparel market.

Because of its high growth rates, Zalando got to be the market leader for fashion e-commerce in
Europe. Zalando has 80% of Women as clients, they started on 2008 doing only e-commerce and as
major key advantages they invest a lot on marketing and innovation, they give a full customer
hotline service, with free delivery and return. They also diversified and offer menswear, childswear,
shoes, accessories and even launched a magazine in order to reach every possible audience.
Nonetheless, their big target are women aged 20 to 40. Zalando had expanded to over 14 different
countries by 2012.

On a slightly different approach, Asos has positioned more on fashion and trends by focusing on
selling clothes to its young, loyal customer base. They did so by copying the style of famous
celebrities such as Alexa Chung, Kate Moss and Lady Gaga. However, the key competitive
advantage remains on its flexibility to allow not so richer but younger audience to purchase the high
streets shops’ style on the internet. Also, Asos is most predominant on Europe (especially the UK)
and Asian-pacific states.

2. Discuss and evaluate the criteria that you would use for Zalando’s selection of
new markets outside its current 14 countries. End up with a ranking list of the
three most attractive countries.

Zalando started in 2008 in Berlin selling shoes via a relatively simple online store to customers in
Germany. Already in 2009 Zalando expanded its offer to customers in Austria and by 2010 the
website was translated intony ma other languages and adapted to specific local needs to start the
business in several other European countries.

Zalando already cooperates with well-known global brands and offers their products. Based on this
it is possible to expand the business into other countries outside Europe as the firm already has
developed its own proprietary technology platform ZEOS and profound knowledge about online
retailing. This technical skills and knowledge can be transferred relative easily to platforms for
further countries.

3. Discuss and evaluate the pros and cons for Anders Holch Povlsen and Bestseller,
regarding the investments in Zalando and Asos.

I find the decision of Anders rather strange, but also amazingly clever. As a positive perspective:
With stocks on both companies, he could take advantage of one’s situation to benefit from the other.
He can use the know-how of Zalando’s business and utilize it for Asos, so to maximize profits.
He’ll be one step ahead by having all the information of the two, and shaping the decisions each
take based on what he already knows about the other, selling or buying stocks just at the right time.
As for the cons of having him on both companies, one of the two will either disappear or merge into
the other. It all depends on his approach, economic and environmental factors and internal business
factors.