How depth resolution: electricity a copycat Zalando counter attack Zappos?

from: tencent technology

will be on August 18, 2014 published by Forbes magazine published stories, to rely on fake mode of the development of e-commerce sites Zalando Germany has carried on the comprehensive elaboration.

here is the article main content:

one day in November 2012, Las Vegas unusually hot, rubin, rhett (RubinRitter) has been exhausted. He has just joined the company holiday party a few days ago, then fly 12 hours arrived from Berlin, the “sin city”, but he’s not here to experience the neon of.

as general manager of the German online fashion retailers Zalando, rhett is here to attend the meeting, he decided to visit: by the way they imitate – 2009 by amazon’s spend $1.2 billion to buy shoes online retailer Zappos.

like a visit to Zappos 20000 people a year, lanky rhett in with the breastpiece Zappos was really taken aback upon after building. In any corner, there will be Zappos employees send his greetings and some dance, some playing with balloons, everyone’s face is permeated with happiness. For once a business consultant in McKinsey rhett, this scene is really surprising.

“they’re like the happiest people on this planet.” He said, “as a German, I’m curious, ‘why? ‘I don’t know how to build a company in Germany.”

a copycat success

he doesn’t have to know. Although in many people’s eyes, Zalando also like other European startup business suit against the United States, but in rhett and co-founder of the company, Robert perkins (RobertGentz) and under the leadership of David schneider (DavidSchneider), they already broke through the slavish imitation stage. Can also be free shipping and free returns as a network of retailers, Zalando scale not only on a par with Zappos, valuations even far more than the other (they received $5.3 billion in the recent round of financing valuations). But the atmosphere in the company no zappos’ to be happy.

berlin-based Zalando is Europe’s largest pure online fashion retailer. Since founded in 2008, to $1 billion per year for the first time, they took only a short span of four years, also has created the fastest record in Europe. The company specializes in Nike, DieselJeans and TommyHilfiger 1500 brands of shoes and clothes, they achieve more than $20 last year gross income, is currently in the process of IPO (initial public offering), since 2000 has the potential to be the largest in Germany technology a new listings deal.

“they never admit their copying a good ideas, and implement it down.” Zappos former COO, the sequoia partner Alfred Lin said, “there wasn’t much new business ideas, many are derived from excellent execution.”

the copied accused didn’t let Zalando executives get too angry, they just said that he had breached imitate, became a unique enterprise, not only in clothing business beyond the amazon, even beyond the H& M and OttoGroup traditional retailers.

the past 4 years, Zalando net revenue will grow at least 50% a year. “This is our pattern: from other companies for inspiration, but we will not blindly follow the Zappos.” Rhett said, “there is a big difference between the two companies.”

in a sense, Zalando can succeed, precisely because overcomes the Zappos to challenge. In particular, is the language a lot of differences, regulations, and taste of European market. Zalando active catered to this complex situation. So far, the company has been in 15 countries introduced a special website, and has three big storage center, one of them even is Europe’s largest e-commerce distribution center.

in 2011, Italian website, in the Internet penetration rate less than 60% of the country, some consumers even with the help of a special guide to learn how to open the E-mail. In Switzerland, users complain about German accent, the customer service representative in communication, so the company to switch to a group of Swiss local accent.

negative reports continuously

the success of Zalando also triggered the curiosity of the German media. In April this year, the German television station RTL a reporter to Zalando of the logistics center in el ford undercover, took many pictures with hidden cameras. RTL believes that the company has been promoting the high pressure working environment, some employees of walking or even more than 25 kilometers every day.

Zalando citing alleged defamation of the RTL to court, ask its revocation of false reports, including made-up Zalando employee reports of deaths in work. But at the same time, the company is also adjusted the employment way, prolong the time to rest, and probes into the management training again.

“we’re not perfect employer.” She said, “as long as you do logistics, and to do large scale, is sure to ride problems. Can we altogether? No, but we must be worthy of criticism “

but compared with improper labor reports, media are keen to see the company’s financial situation. Der spiegel outspoken in February, who wrote: “to please the German investors, Zalando need to show some profits.”

rhett didn’t seem to worry too much about this. He pointed out that in order to achieve the expansion, amazon has given up the profit for many years, and his company after the stop “ultra-high-speed growth”, will soon turn a profit. During this time, they have hired more than 5000 employees, and through the yuri milner (YuriMilner) DST Global, Denmark fashion tycoon Anders hall, Mr Bove (Anders HolchPovlsen) and the Swedish investment company Kinnevik financing more than $500 million.

Zalando know, it doesn’t have to conquer the world, as long as the conquest of Europe. Forbes estimated Zalando last year more than 45% of the business from Germany. And, according to German trade research institute, the company’s online fashion market share of nearly 10% in Germany. Amazon last year in Germany to achieve revenue of $10.5 billion, but in the country’s online fashion retail market share less than 5%.

“amazon sold everything,” lane industrial university business professor magritte, heineman (GerritHeinemann) said, “it’s like warehouse supermarkets, but they are not professional in the field of fashion. My daughter will never go to amazon to buy fashion.”

Social attempt failed

2008 venture capital firms and business incubator RocketInternet Zalando benefited from Berlin’s support. Since 2007, the company has propped up 75 different start-up companies, most of which are directly from the American companies. Of the most famous is another mode of these companies establish the group-buying CityDeal – less than 5 months the company was founded, in 2010 sold for $170 million to the company.

RocketInternet already by drawing from the United States, the founder of creative made huge profits, mulberry will three brothers (including mark, oliver and alex) of the total amount of wealth has more than $1 billion, they used to imitate eBay’s model introduced Alando, and sold at a price of $43 million in 1999, to dig into the first bucket of gold. RocketInternet funded startups total revenue is more than $3 billion last year.

mulberry will brother then this fake mode is introduced into the developing countries, there are rumors of RocketInternet itself in preparation for the IPO. They have created Brazil Zappos (Dafiti), amazon (Lazad) in Indonesia, and Nigeria eBay (Kamyu).

however, RocketInternet support entrepreneurs, there is no people like Zalando perkins and schneider so successful. They used to be a cobb coherence Otto beisheim school of management research (WHU – Otto BeisheimSchool ofManagement) roommate, because the same entrepreneurial dream together. They most of the students into the consulting industry, but the two of them together to Latin America.

Facebook clones StudiVZ (also by Santiago will brothers support) in 2007 by a German publishing group Holtzbrinck $134 million acquisition, inspired, they also want to start a social network in Latin America.

they put the web site named Unibicate. The site with Facebook is very similar, but has adopted the theme of orange. Around the two of them separately to attract users: perkins came to monterrey, Mexico, schneider to Argentina Buenos Aires. But a few months, they realized that this is a losing, because Facebook is already popular there.

perkins said: “I say to our Mexican business partner, we need to find some good programmers in monterrey. Word ran to Facebook to dig them.” Five months later, because the only to attract 100000 users, they have to close the Unibicate, then hide in Santiago, Chile, patchwork everywhere, want to buy a ticket home.

oliver mulberry will also graduated from cobb coherence otto beisheim school of management research, he met perkins in school activities and schneider, and was deeply attached to the roommate’s entrepreneurial zeal. So, he is always asking for the two alumni regularly. In contact with them, and heard their overseas, he gives them a chance to work for yourself. Perkins and schneider to accept the invitation, but also put forward a condition: mulberry will have to give them buy return ticket to Europe.

Explore electricity pattern

go back to the continent, they do a few job for mulberry will brother sporadic, finally found his field: electronic commerce. In RocketInternet successively by cloning method introduced several online retail after startup, perkins and schneider also decided to follow the Zappos mode, selling shoes online, which has been performed in the United States, with annual sales of up to $1 billion.

in June 2008, after $70000 in funding from the RocketInternet, they formed a monopoly sandals website, named fliptops. DE. Perkins and schneider to take this opportunity to understand the basic rules of online retail industry, and in October the same year launched a full range of online shoe store Zalando. DE.

less than 6 months, Zalando has to achieve sales of 1 million euros per month. Perkins will this rapid growth is attributed to search engine optimization, and the staff of the positive attitude to solve the problem of customer service. Even at the weekend, customer service call will be diverted to the founders and executives, on your mobile phone to perform extrusion orders as soon as possible. In the middle of 2009, again to Zalando RocketInternet $7 million, and sent to a large number of marketing personnel and engineers, to help it expand business scale.

as the business scope in the field of clothing, and in the Netherlands, France and Austria launched special website, Zalando soon moved into the area of a larger office (headquarters) six years successively four times they change. They also introduced the special television advertising, to take this to the people of Europe free returns and wide choice of radical ideas.

one AD is about a husband after being trapped in the closet, warned his wife don’t be too addicted to Zalando. The AD in Germany won the advertising industry awards, but it has been named the worst advertising in the Netherlands. The controversial reputation produced an immediate effect. Zalando2010 years never to $10 million in annual sales surged to $200 million.

although growing so rapidly, but still the company’s operating budget. As students of perkins and schneider, rhett joining Zalando in 2009, served as general manager. He remembered, Zalando early a headquarters paper covering the Windows with the curtain of paper, with the air conditioning to fight the heat in the Berlin.

he also revealed that proudly Zalando2011 years outside set up storage center in Berlin for the first time, can provide 3 months of inventory, and recruited 1000 employees, direct investment of only $11 million. Amazon in Texas, in 2012, the construction of a logistics center has spent $166 million.

“we know, less money can also do more.” Rhett said, “this is our genes.”

looking for new ideas

there were rumours that the company is set to IPO this autumn. As the date approaches, Zalando management team realized that the only way to keep growing, is to get rid of the reputation of being a copycat, and try new ideas.

years forecasts suggest that the company will break even this year, the annual net revenue growth likely to slow to 30%. Zalando2013 pre-tax profit margins of 6.5%, slightly better than – 7.2% of the expected.

Zalando is spare no effort to improve the situation, test new functions, such as the third party market and launched a new mobile application, in order to further strengthen the user interaction. Consumers can browse on commuted road Levi ‘s jeans and adidas sneakers, returned home after can be directly on the desktop to complete the order. By the end of June, this app has attracted nearly 4 million downloads.

Zalando own brand clothing and shoes for the higher profit margins. nullnullnullnullnullnullnullnull