In Europe’s crowded e-commerce market, standing out on a major platform like Zalando is more complex than ever. Brands face cost-conscious consumers, intense competition, and the challenge of translating a unique identity into a marketplace environment. So, what separates the brands that thrive from those that merely survive?
We sat down with Ignacio “Nacho” Royo Hernandez, Director Partner Consulting at Zalando, for a recent episode of Business Casual to get an inside perspective. Nacho unpacks the most significant shifts in customer behaviour and shares what winning brands get right.
The new consumer mindset: Value, vintage, and a polarised market
The e-commerce landscape is being reshaped by two powerful, opposing forces. On one side, ultra-fast fashion platforms have conditioned a segment of consumers to prioritise low prices and rapid trend cycles. On the other, a growing number of shoppers are thinking about the long-term value of their purchases.
This has fuelled the rapid expansion of the secondhand market, which is projected to grow 2.7 times faster than the overall apparel industry. As Hernandez explains, this shift fundamentally changes how customers approach a new purchase. Shoppers are more willing to invest in higher-quality items from brands with strong equity because they mentally factor in the future resale price.
This creates a clear choice for brands: compete on price or differentiate through quality and brand equity.
Customers are purchasing new products with an understanding of what would be the journey of that product across, for example, a second life or a third life.
Back to basics: Why brand and product are your best investment
In this environment, the most critical strategy is to invest in your fundamentals: your brand and your product. A strong brand and a high-quality product create a clear differentiating factor that gives customers a reason to choose you beyond the price tag.
This isn’t just about the first sale. Investing in your brand’s story and the quality of your products directly contributes to a higher resale value, reinforcing your brand’s long-term perception and building loyalty. As Hernandez puts it, this focus on quality gives brands “a layer of confidence” that their value will endure. The advice is simple: take the profit you make and reinvest it into the product and the brand to build lasting value.
High willingness, low readiness: Are you truly prepared for marketplace success?
Many brands are eager to scale across Europe using marketplaces, but often underestimate the preparation required. Hernandez refers to this gap as “high willingness, low readiness.”
True marketplace readiness goes beyond simply listing products. It means having the operational and commercial infrastructure to compete and succeed. This includes:
Operational excellence: A setup that meets high customer expectations for delivery speed, product availability, and seamless returns.
A clear brand story: If customers don’t know your brand, their first impression is formed from limited information on the product page. You must be able to tell your story clearly and consistently.
A smart assortment: A deep understanding of what products will resonate with the specific customer base of the marketplace.
Without this readiness, brands risk operational inefficiencies and a brand story that gets lost in translation.
From transaction to story: The power of content
On a crowded marketplace, a brand’s story can easily be reduced to five simple images and a block of text. This is where elevated content becomes a powerful tool for differentiation. Brands should leverage all the tools available to them—on Zalando, for instance, partners can use up to 35 images per product. This is an opportunity to show texture, fit, and the quality of the lining—details that tell a product’s story.
Investing in high-quality Product Detail Pages (PDPs) and brand homes creates value from an inspirational perspective, not just a transactional one. This kind of content drives engagement beyond the immediate purchase. In fact, elevated content on Zalando has a +10% higher engagement rate than standard product shots.
The local touch: A one-size-fits-all strategy won’t work
Finally, success in Europe requires a localised approach. A one-size-fits-all strategy often underperforms when competing with local heroes who have a deeper understanding of the market. Winning brands are those that adapt their pricing, assortment, and even the timing of their campaigns to reflect local trends, weather, and cultural events.
The flexibility of the marketplace model is a key advantage here. Unlike wholesale, where commitments are made months in advance, the partner program allows brands to be reactive and adjust their strategy in real-time based on customer behaviour and market context.
Ultimately, winning on a platform like Zalando requires a holistic approach. It’s about building a strong brand, delivering a quality product, mastering operations, and telling a compelling story that is tailored to the customers you want to reach.
