Zalando now sells toys

January 12, 2023 by
Frank Calviño

Zalando now sells toys. The company has expanded its product range with a selection of toys from well-known brands such as Lego, Playmobil, Hot Wheels, Barbie, Baby Born, Ravensburger, and Haba. 

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As reported by Locationinsider, the fashion platform has expanded its range in this product segment for the first time since 2018.

Now, toys for children of different ages can be found on Zalando, including stuffed animals, dolls, rockers, walkers, and toy cars for the youngest; puzzles, collectibles and game figures, musical instruments or costumes for older children.

The platform thus continues its commitment to innovate and expand its range of products. Last October, Nike chose the marketplace to integrate, within its structure, its own online business. In the announcement, the company said it planned to expand this partnership to Zalando customers in Germany, the Netherlands, France, Belgium, Denmark, Sweden, Finland, Italy, and Poland.

A good year for Zalando? 

The German marketplace closed the third quarter of last year with its sales up but fattening its losses. Specifically, the company's turnover rose 2.9% in the third quarter of the financial year to EUR 2,349.1 million. Gross merchandise volume increased by 7.1% to 3,282.8 million euros.

However, despite the losses, the company explained in the presentation of the results that, for the first time in its history, the number of active marketplace customers exceeded the 50 million mark, to 50.2 million customers, thanks to its loyalty program. In terms of profitability, the German company confirmed the growth forecasts it set in June last year, although it expects them to remain in the lower range.

But Zalando is not the only one suffering from a kind of ‘hangover’ during 2022. Asos, the British fashion e-commerce brand, presented full results for the 2022 financial year, and the data leaves much to be desired. 

Asos and Boohoo are also struggling 

The company has raised its sales by just 1% in the period and has entered into losses, with red numbers of 30.8 million euros. The company has been one of the most penalized by the end of the ‘e-commerce/covid boom party’ and began to take measures to cure the hangover before anyone else. In its first half-year results, the British group already anticipated the impact of inflation on its business.

High logistics costs, price rises, the exit from Russia, and the downturn in consumer demand caused the company to start looking for solutions, all without a first sword after the departure of Nick Beigthon, the group's CEO for the past six years, in October 2021.

Boohoo is also struggling and has implemented emergency measures during the past year to safeguard its business. The company closed in 2021 following the same trend as the rest of the online operators: moderating sales growth, which rose just 14% in the period, but the situation was more severe for the company's profit, which plunged 94%.

In the first quarter, the situation worsened, and sales fell by 8%, while in the first half of the year, described by the company as "difficult", the company lost optimism after reducing its turnover by 10%. The company then reduced its year-end forecasts, estimating the same drop for the rest of the year.

To alleviate the situation, the company has implemented a series of measures to face the recovery and improve its profitability. The plan involves improving the areas of procurement, inventory management, and overhead.

But the big decision taken by the group in 2022 was to get rid of a big stone in its shoe that prevented it from dancing. After studying and testing this measure for months, Boohoo decided in July to go ahead with it. The group then changed the fine print on its website, which now states that it will charge £1.99 for each return.

All in all, it seems 2023 will be a year of challenges for global e-commerce. 

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