Could Zalando be the Next Target Acquisition for Amazon or Alibaba?

Zalando
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Zalando is likely to face a takeover bid from big eCommerce players like Amazon and Alibaba as its share price continues to dwindle.

Analysts at German investment bank Baader Helvea say the successful bidder can potentially become Europe’s largest online fashion house at a bargain.

Zalando logoIn spite of reporting a £34 million loss and issuing two profit warnings in the previous quarter, which sent its share price plummeting, Zalando remains a valuable investment for investors, according to Volker Bosse, co-head of Baader Helvea Equity Research.

Zalando As Europe’s Largest Fashion Retailer

He said that the retailer boasts a data of more than 25 million customers and 2.5 billion website visits per year, making it Europe’s leading fashion retailer.

If and when a potential takeover bid does happen, Bosse speculates that Zalando’s investors are prepared to sell their shares.

“We see the potential that these investors could sell if the offered price is right.” – Volker Bosse, Co-Head of Equity Research, Baader Helvea

Zalando, which reported a revenue growth of 12% in its Q3 2018 financial report, is surely an attractive target for Amazon who intends to expand its private label brands into Europe.

On the other hand, Alibaba has partnered with top European brands and been selling them on its marketplace, hence acquiring Zalando would only further its position in the race to world domination.

So, who are you rooting for? Who do you think is the most likely buyer for Zalando? Let us know in the comments below or over in our Facebook Group.

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For almost 10 years Dave has been involved with eCommerce with a particular interest in the marketplaces and the huge opportunities available for sellers when utilizing a multi-channel strategy. After a year of being the UK’s youngest eCommerce consultant it was the opportunity to start UnderstandingE with Matt Ogborne showing the world how to utilize Magento as the Third Generation of Multi-Channel software. Dave also recently started a YouTube channel called the Manc Entrepreneur (click YouTube icon link below to watch Dave's videos) where he discusses all things eCommerce and entrepreneurship aimed to help young entrepreneurs get started on their own journey. When Dave isn’t working his main interests include, Technology, Cars and throwing himself off high things into water.

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