Zalando to open tech site in China; no current plans to enter this site | kbnmart

Zalando said on August 6 that it would open a new technical site in the Chinese technology hub of Shenzhen, but it had no plans to expand its market into China at this stage.

The Chinese tech hub would allow the German online fashion retailer to tap into local expertise in social commerce and combine it with the company’s knowledge of the European e-commerce market, Sandra Dembik, the company’s chief financial officer, said on a call with investors following Zalando’s second-quarter results.
Zalando said it has no current plans to expand its e-commerce platform into China.

The company, which serves around 50 million active customers in 25 markets across Europe, has recently focused on higher-priced sportswear and apparel brands as it competes with lower-priced retailers like Shein, introducing its own sports collection and launching sports brands like Lululemon, Hoka and On Running in recent quarters.
These luxury sportswear brands are seeing strong growth in China, where health and wellness have become a priority for aspirational middle-class consumers since the pandemic, with many people taking up activities like yoga, hiking and running for the first time.

“We remain focused on capitalizing on the growth opportunities offered by Europe and are confident that our technology position in China will contribute to achieving our goals,” Zalando said in an email.

China’s booming e-commerce industry has slowed down recently, due to the economic downturn.