Contents

• This report is based on the following case study -
• Background to Zalando
• Zalando is an internet retailer of branded clothing and footwear for men, women and children. The company operates in the standard and premium segments, offering a wide range of products. It is expanding the number of exclusive brands offered by its Internet shop. Zalando was established in Germany by Robert Gentz and David Schneider in 2008. The company is headquartered in Berlin and has operated so far only in e-commerce. A customer service hotline and free delivery and free return of goods are offered.
• Zalando is the largest online footwear shop in Europe, offering a high number of international brands. Besides footwear, Zalando distributes women’s and men’s outerwear, underwear, hosiery and clothing accessories, as well as bags and a number of other product types. In March 2010 Zalando expanded its product range by adding children’s wear. In January 2011, the internet retailer started to sell exclusive perfume brands.
• Zalando is a rapidly growing company. Its first acquisition took place in May 2010 with the buyout of MyBrands, an online designer outlet. With the acquisition of MyBrands, Zalando has broadened its target consumer group and its range of premium products.
• Zalando is firmly established in the European market. To compete in other global markets, top management has decided to expand Zalando’s products to the Middle Eastern Region and have shortlisted three countries as potential markets: Turkey, Egypt, and UAE.
• Assume you are a marketing consultant, and Zalando has approached you to assess opportunities in the Middle Eastern Region. The following is the Research Brief you are given by Management:

Description

This paper answers the following task on the case study -
Considering Zalando being a medium sized firm we want to expand cautiously and step by step.
While operating in the whole Middle Eastern Region is a long term objective at first we want to identify the most prospective market to enter. As we want to know which of the three markets the firm should enter first, we want you to undertake a market opportunity assessment.
In your analysis, examine the investment environment, effects of government interventionist policies, the market potential, the impact of regional integration initiatives, if any, and related issues with a clear identification of opportunities and threats in each of these markets.
Recommend which country the firm should enter first, explaining why. Also suggest which market entry strategy is more appropriate, with justification. Resource wise, we are confident that we will have no problem to undertake the opportunities identified and recommendations proposed in your report.