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Zalando: ‘Instagram will be our biggest competitor’

Zalando: ‘Instagram will be our biggest competitor’ (Retail Week)

  • Zalando, the European fashion retailer, has said that it sees social media platform Instagram as its biggest future competitor rather than peers such as ASOS or the online giant Amazon.
  • According to the company’s vice president of womenswear, Sara Diaz, “Instagram is inspirational and easy for customers to use”, while ASOS’ site complements rather than competes with Zalando, and Amazon lacks the “fashionability” to be a competitor.

Analysis and Comments

  • The statement follows Adam Mosseri, Instagram’s head, laying out his long-term vision for the social media platform, which includes ramping up retail and tapping into the app’s 1bn users’ desire to “window-shop”.
  • While Instagram has only recently (March) launched its online shopping feature that allows us users to buy products directly on the social media platform, the beginning of the transition goes as far back as last year, as the app had already quietly launched payment features when it first introduced the shoppable tags in 2018.
  • The US trial includes products from 20 different brands, including H&M, Zara, Burberry, and Adidas, and allows users to buy and track orders in-app via the new checkout system.
  • Instagram’s move into ecommerce is unsurprising given its importance to social media influencers who leverage the platform to communicate with their followers and the fact that more than 200m of Instagram’s 1bn+ monthly active users (MAUs) visit business profiles every day to find inspiration and browse the curated content of influencer and brand profiles – something that sets the app apart from retailers like amazon, which is still far more focused on convenience rather than inspiration and product curation.
  • Mosseri’s vision as well as Diaz’s/Zalando’s comment as supportive of the view that social media platforms frequented by influencers will ultimately transition to social ecommerce platforms.

Zalando Stock Price

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