Zalando to challenge the British electric business Asos

Absrtact: While Alibaba is ready to land in the U.S. stock market to absorb gold, Zalando, a German fashion dealer, announced plans to be listed on the Frankfurt Stock exchange for the year and is expected to raise more than € 500 million, the company's market capitalisation of about 4.5 billion euros. Successful listing

As Alibaba prepares to take a big hit on US equities, Zalando, a German fashion dealer, has announced plans for a year on the Frankfurt Stock Exchange, which is expected to raise more than € 500 million, with a company worth about € 4.5 billion. After the successful listing, Zalando will become one of Germany's largest technology stocks. In the industry's view, Zalando can challenge the status of old rivals Asos is unknown.

Improve performance

Zalando, a German-born fashion dealer who sells footwear in 2008, now offers about 1500 brands to consumers in 15 European countries.

Zalando, who has not yet made a profit in the first half of the year to prepare for the IPO, achieved its first profit. Data show that the first half of this year, Zalando profit reached 16.6 million U.S. dollars, the same period last year, the loss amounted to 90 million U.S. dollars. On the basis of the economic ability Enhancement, Zalando invests a lot of energy in the market, will build itself as the international leading fashion electric dealer, especially in Germany, Switzerland and Australia these Zalando market share up to more than 60% of the region, Zalando is also vigorously invests. At the same time, Zalando will also develop its own fashion brand and mobile end of the app, hoping to increase customer repeat purchase rate.

In the opinion of analysts, Zalando is trying so hard to get a higher valuation than the competitor Asos in the capital markets. Zalando claimed that in the European market, total revenue, website traffic, brand awareness and active customers are more than ASOS.

The tide of technology stock listing

The active capital market this year has pushed a group of electric business enterprises to go public. PwC, a consultancy, said the two quarter of 2014 was the busiest quarter for tech stocks in nearly two years, with a total of 43 companies preparing IPOs globally.

According to relevant sources, Zalando listed stock price range will be finalized in the week of September 29. In order to meet the Ipo,zalando cloth under a lot of new plans. At a recent news conference, Zalando has disclosed information about new ads, websites, packaging and apps. Zalando said that, according to the theory, some shareholders will sell some of the shares in the market, but among the Zalando's existing shareholders, no one plans to sell their holdings.

Pressure from the industry

Asos has long been considered the Zalando's strongest competitor. In Zalando's hometown of Germany, both sides are complementary in the market, but in the UK market, ASOS is clearly better. From the customer base, ASOS target users than Zalando relatively young, Asos current and Zalando in overseas markets actively expand, currently Asos in China, Australia and other countries in addition to the European market outside the international layout.

From a development perspective, ASOS.com was launched in 2000 and listed on the London Stock Exchange in October 2001, when the stock price was only 20 pence/share. Asos's share price, though not in recent years, has peaked at more than 70 pounds. Asos's share price has fallen by half this year as a result of a continuing crisis of earnings warnings and warehouse fires.

Zalando's board member, Rubin Ritter, said it was logical to set up the IPO as the next step from the company's development, and to give the company a degree of flexibility to pursue longer-term growth goals.

From the industry, Zalando see the development potential of the fashion industry, in the value of 420 billion euros in the European fashion market, Zalando real account is too small, so for Zalando, is now trying to expand the market to Eastern European countries.

Zalando next through the joint third party well-known brand Topshop and diesel cut sales costs, thereby improving their profitability, improve the efficiency of the logistics center. According to the disclosure, according to the first half of the revenue, the current infrastructure logistics facilities can be completed now twice times the volume.