Zalando increases its 2025 forecast following the purchase of About You, an online fashion store.
Zalando, the German online fashion marketplace, has boosted its growth prospects following the acquisition of About You in early July 2025. The deal, which valued About You at 1.13 billion euros ($1.31 billion), has led to a revised 2025 gross merchandise volume (GMV) growth projection of 12-15%, up from a previous 4-9% forecast.
The acquisition strengthens Zalando's position in the pan-European fashion and lifestyle e-commerce market. By combining About You's marketplace strengths with Zalando's logistics capabilities, the company aims to create a larger ecosystem covering both Business-to-Consumer (B2C) and Business-to-Business (B2B) segments.
The impact on competition is notable. Zalando is seeking a 15% market share in Europe's €450 billion fashion e-commerce market by leveraging AI-driven personalization and integrating About You’s marketplace expertise with its own logistics platform, ZEOS. This broader ecosystem approach enhances customer retention and operational efficiency, positioning Zalando to better compete against fast-fashion rivals like Shein.
In terms of logistics, Zalando is heavily investing in expanding its European network, now open to partners. The synergy between Zalando’s strong logistics infrastructure and About You’s marketplace software—specifically the collaboration with ABOUT YOU’s SCAYLE software unit within Zalando’s B2B ZEOS platform—further boosts operational scale and software ecosystem capabilities for merchants. These combined efforts are expected to yield substantial EBIT synergies (€100 million annually by 2028) and support both growth and profitability.
The second-quarter GMV of 4.06 billion euros, an increase from 3.86 billion euros a year earlier, represents growth for Zalando. The company, based in Berlin, Germany, is seeking growth in its European market amid faltering consumer spending and competition from fast-fashion retailers.
In summary, the acquisition of About You represents a strategic expansion that considerably enhances Zalando’s market reach, technological edge, and logistics capacity within the European fashion sector. The move positions Zalando for sustainable growth with AI-driven innovation and stronger cross-sector synergies.
- The strategic combination of About You's marketplace strengths and Zalando's logistics capabilities opens up opportunities to establish a robust ecosystem catering to both business-to-consumer (B2C) and business-to-business (B2B) segments within the European fashion industry.
- Leveraging AI-driven personalization and integrating About You’s marketplace expertise with Zalando's logistics platform, ZEOS, Zalando aims to accelerate growth and compete more effectively against fast-fashion rivals, particularly in the technology-driven landscape of the fashion e-commerce market.
