Analysis of Zalando share price

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Analysis of Zalando share price

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As an online fashion giant, before selling or buying Zalando shares, a thorough analysis of the company's share price and trends is essential. By examining financial performance, innovations in the online retail sector and consumer buying habits, investors can assess investment opportunities. This page provides detailed Zalando share data to analyse its share price.
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Information on Zalando shares
ISIN code: DE000ZAL1111
Ticker: ETR: ZAL
Index or market: DAX

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Elements to consider before investing in this asset

Analysis N°1

First of all, Zalando's expansion strategy will be monitored from a geographical point of view, i.e. the development of its activities outside Europe. Its presence in emerging markets will undoubtedly be the most important in the coming years.

Analysis N°2

The diversification of the products marketed by the group will also be an important element for its future growth. We will therefore keep a close eye on this.

Analysis N°3

Of course, before buying or selling Zalando shares, it will be important to keep a close eye on the company's financial and economic publications, particularly its growth and profitability figures.

Analysis N°4

Any change in consumer habits could also positively or negatively influence Zalando's share price.

Analysis N°5

Of course, it will be important to keep a close eye on competition in this sector, both from large groups in direct competition and from local competition, which is proving increasingly threatening.

Analysis N°6

Zalando's pricing policy is at the heart of its marketing strategy. It goes without saying, therefore, that the slightest change in price will influence its profitability and sales.

Analysis N°7

Finally, the Zalando Group, like many others, is subject to the regulations and legislation of the countries in which it markets its products. Any change in these regulations could therefore have a significant impact on the evolution of its share price.

How to sell or buy Zalando shares?
Analysis of Zalando share price
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What should I know before sell and buy Zalando stock?

Buy Zalando shares

We would now like to take a detailed look at Zalando. Before buying or selling Zalando shares, it is essential to understand the company's precise activities and sources of revenue, so that you can better anticipate future challenges. Here is some information you need to know about this group.

Zalando SE is a German company specialising in fashion and online sales. More specifically, Zalando is currently the European leader in online shoe sales, as well as in the online sale of clothing and fashion accessories for men, women and children.

To better understand the company's activities, they can be broken down into different divisions according to the proportion of sales they generate:

  • Online sales are of course the company's major activity, generating over 86.7% of sales.
  • This is followed by the operation of the Zalando Lounge private sales site, which generates 9.6% of the group's sales, and the operation of a number of physical shops.
  • Finally, the remaining 3.7% of sales come from activities ancillary to these activities.

According to the financial and economic results published by the group at the end of 2019, Zalando has no fewer than 31 million active customers worldwide.

It is also interesting to know the geographical distribution of the Zalando group's activities. The company generates most of its sales in Germany, Austria and Switzerland, accounting for 45.9% of total sales. The rest of Europe generates 54.1% of its sales.

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The major competitors of Zalando

The Zalando group is a major player in online sales, more specifically in the field of ready-to-wear and accessories in Europe. It is the European leader in this sector but is facing increasingly tough competition from a few companies operating in the same field.

Sarenza and Spartoo

This is notably the case of the Sarenza online sales site or Spartoo, which operate on an equivalent and almost strictly identical model to that of Zalando.

3suisses and La Redoute

We must also take into account the giants of online ready-to-wear clothing, 3Suisses and La Redoute, which also overshadow Zalando.


Finally, although it has more diversified activities, including the sale of different ranges of products not found on Zalando, the e-commerce giant Amazon can also be considered as a direct competitor of Zalando.

The major partners of Zalando


In 2016, Zalando and his partner, Google, launched a new project called "Project Muze" which is actually an artificial intelligence solution to create a clothing style according to one's personality and thus boost the e-merchant's sales.


In 2017, Zalando has also partnered with Danish fashion company Bestseller to create an online platform for shops to shop for clothing and accessories. Bestseller has sold half of its shares to Zalando, which will invest in the online platform to open up shopping to other fashion retailers. The amount of this exchange is still unknown.

Analysis of Zalando share price
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Positive factors for Zalando
The factors in favour of a rise in the Zalando share price:

Zalando's positioning in its preferred market, which is the sale of ready-to-wear and online accessories and shoes, is of course an undeniable asset of this company. Indeed, Zalando remains the current leader in this field in terms of sales, despite the recent appearance of several major competitors.

The rapid growth of this company in just a few years is of course also one of the strengths of this group. Zalando has been able to improve its results and significantly increase its turnover for several years in a row. This is of course very reassuring for shareholders and stock market investors.

The Zalando Group's highly diversified brand portfolio is, of course, another of its main assets. Today, the company offers no less than 1500 different brands, which enables it to respond to strong demand and to reach different targets.

The fact that Zalando operates throughout Europe is also an undeniable advantage as it allows it to protect itself against the risks associated with a single geographical sector in the event of a consumer crisis.

Finally, the very structure of this company, which is relatively small compared to those of some of its competitors, notably thanks to 100% online activities, is of course also appreciable as it allows for numerous savings.

Negative factors for Zalando
The factors in favour of a drop in the Zalando share price:

Let's find out the major disadvantages of Zalando and its main weaknesses:

  • For example, there are low investments in customer-oriented services, which could allow the competition to take market share. Similarly, the group's R&D investments are low.
  • Zalando's business model can also be easily copied by its competitors in the retail sector. Although the group was one of the forerunners of online clothing sales, it now faces competition from many other companies.
  • While the Zalando Group is trying to implement an attractive pricing strategy by trying to lower the price of its suppliers and supply chain, this is causing some problems with certain brands.
  • As the clothing retail sector is a faster growing sector than Zalando, the group is experiencing declines in market share and must continually develop appropriate solutions to stimulate future growth.
  • Finally, another major disadvantage of the Zalando group is the decline in unit income for the group. Indeed, the competitiveness of this sector of activity of the online sale of clothing and shoes exerts a strong downward pressure on the profitability of the company. As a result, even though the group's turnover is high, its net margin may be affected by the need for a price war.
The information supplied here is only for indicative purposes and should not be used without the completion of a comprehensive and complete fundamental analysis of this asset notably taking into account exterior data, future publications and announcements and all fundamental events and news that could influence the strengths and weaknesses or make them more or less significant. This information does not in any way constitute recommendations relating to the completion of transactions or a solicitation to buy or sell an asset.
Analysis of Zalando share price

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