Online fashion retailer Zalando is set to close its private label business, zLabels, on April 1st as it undertakes a complementary strategy with its partner brands to improve its marketplace offerings.
The Germany-based eCommerce company said in a press release that it aims to provide a wider variety of products, and the only way to achieve this is by bringing in new brands and refining its private-label products.
“This approach will allow us to work together under one roof, with a strategic direction for our own assortment which will be more complementary to our partner brands. This is very much in line with our ambition of becoming the starting point for fashion. We are convinced that our strong customer focus and platform strategy are the right path to success.” – David Schneider, Co-Chief Executive, Zalando
The company said its 11 private-label brands will be kept and reviewed for the time being, but sometime in spring or summer 2020, its fashion line will start focusing on customers’ everyday essentials while continuing to provide a range of footwear and accessories.
It further added that the 550 employees of zLabels are going to be absorbed into the Zalando Fashion Store and be given comparable positions.
Not so long ago, Zalando posed a big threat to other eCommerce giants like Amazon when it started selling its own fashion labels. Could shutting down zLabels lead to its downfall? Let us know what you think in the comments below or head over to our Facebook Group.