Fashion is a constantly evolving and transforming industry. Fashion is a constantly changing industry. Everyone wants to be fashionable, so the demand for trendy clothing is sky-high.

To accommodate this rising demand, technology has completely transformed the fashion business in recent years. It is no longer necessary to visit different shops in order to purchase our clothing. A fashion shopping app allows you to purchase clothes online from any brand. With just a few clicks and scrolls, you may locate the ideal outfit.

How can we not mention Zalora when we talk about fashion shopping apps? Fashion lovers and startups are always wondering how they can make their own app similar to Zalora.

How did Zalora achieve its success? How does Zalora operate? “What is the Zalora App Business Model?” are some of the questions that they ask themselves all the time.

We have created an overview for the Zalora App Business Model if you want to know how you can create a fashion-shopping app similar to Zalora.

Let’s begin!

What is Zalora?

Zalora, an online marketplace for fashion and lifestyle products based in Southeast Asia. The company was founded in 2012. It offers clothing, shoes and accessories for men and women, as well as beauty products.

Zalora is a leading online fashion retailer in Asia, with operations in Singapore, Malaysia, Indonesia, the Philippines, Hong Kong, Taiwan and Brunei. Platform features include free delivery, multiple payments options, and easy return. Zalora App Business Model collaborates with fashion brands in order to provide its customers with exclusive products and collections.

How Does the Zalora App Work?

It is simple to use and gives the user a smooth experience. Users are shown a homepage with various categories of shoes, clothing and accessories when they download and launch the Zalora application. Users can either browse the categories or search for specific items using the search feature.

After finding the products they wish to buy, users can add them to their shopping cart and continue to the checkout. During the checkout process, users are able to review their order and choose their preferred payment option. They can also enter their shipping details. Users can also track their orders, and receive notifications regarding their delivery status.

The zalora app development offers users a variety of features, including a wishlist, where they can store items that they like for future purchases. It also includes product ratings and reviews from other users. Zalora App Business Model is designed to be a convenient and user-friendly way for users to fashion shop online.

Zalora Revenue Model

We’ll start by examining Zalora’s first source of revenue – namely, revenue from direct sales. According to the infographic, Zalora will take 25-30% of every transaction. Zalora’s revenue is still something we’re interested in knowing. We will have to look for other sources of information to help us fill in the gaps.

Zalora’s average basket size is RM 212 ($52) for their desktop platform and RM 220.16 (54 $) for their mobile platform. According to the infographic, zalora uae receives an average of 79k monthly visitors. They also have a 1.9% conversion rate.

Let’s use RM 216.08 as the average basket size for their desktop and mobile platforms. Zalora’s 79k visitors should be 1.9%, which means that 1,501 users are expected to make transactions each month. By multiplying basket size and average user transactions, we can estimate RM 324 336.08 gross revenue per month and RM 3,892 032.96 gross revenue annually, in Malaysia.

Zalora’s Fascinating History

Zalora is a part of the Zalora Group. It was founded by Rocket Internet GmbH in late 2011 or early 2012. Asia Pacific’s top online fashion merchants, The Iconic are located in New Zealand and Australia.

Zalora managing director Michele Ferrario said: “Our company has one of Southeast Asia’s fastest-growing ecommerce marketplace software companies and bright prospects.” It is a great honor that investors with such a high reputation have invested in a young e-commerce firm like Zalora.

Rocket Internet GmbH was founded in 2007 and is one of the leading online incubators for innovative internet companies. Its goal is to be the best internet platform in the world outside of the USA and China. Zalora App Business Model is one of its many ventures, including FoodPanda and PricePanda.

Market Value and Growth of Zalora

• Zalora had approximately 1.25 millions monthly visitors in Malaysia during the second quarter of 2022. This is an improvement from the prior quarter. Zalora, an online fashion store with operations throughout East- and Southeast Asian nations, is a platform that offers fashion products.
• Zalora, the Philippines’ most popular B2C fashion e-commerce website, had around 1.87 millions monthly visitors as of the fourth quarter 2021. Watch Portal was ranked second with 64.8 thousand visitors per month.
• Ranking a website can help you evaluate the worth of your business. In the past three months, zalora.com has risen from 370 637 to 260 961 in its global ranking.
• The audience composition of a website can be used to determine its current market share among different audiences. The audience of zalora.com is made up of 53.38% men and 46.62 % women. Visitors are mainly aged 25-34.
• In Q2 2020 we saw two million downloads for the zalora apps and a 7-12% increase in new customer revenue, depending on the geography.
• The multi-pronged strategy allowed Zalora, during the teaser phase, to build awareness and purchase consideration. A 2% increase was seen in the rate of ‘add to the cart’ and a 122% rise in the rate of ‘app install’.
• Zalora will have 3.5 million customers active by 2021. It has over 20,000,000 mobile app downloads and over 1.5 million shipped orders.

Zalora Timeline

• Zalora launched its e-commerce website in 2012, with sites available in Indonesia, Malaysia and the Philippines.
• Zalora has raised $100 million in May 2013 from Rocket Internet, Swedish investment company Kinnevik AB and Summit Partners.
• December 2013: In a subsequent round of funding, Len Blavatnik’s Access Industries and other new investors gave Zalora $112 million.
• The Global Fashion Group, which consists of Lamoda, Dafiti Namshi, Jabong, and Zalora, was established by Rocket Internet and Kinnevik.
• April 2016: Zalora Group sold Central Group of Thailand a 100% share in Zalora Vietnam and Zalora Thailand.
• Ayala Corporation purchased a 43.4% share in Zalora Philippines, their first venture into fashion ecommerce online marketplace.
• March 2017: YCH Group announced Zalora and a regional e-fulfillment hub of 470,000 square feet in Kuala Lumpur.

Zalora Business Model – How Does it Make Money?

The Zalora App Business Model determines a company’s revenue-generating plan. The Zalora business model identifies the products and services that the company plans to sell as well as its target market. It also outlines any expenses.

We will now examine the components of Zalora App Business Model. Let’s start with the value proposition that mobile application development services have approved.

1. Zalora’s Value Proposition

It offers a variety of products to its customers, giving them the convenience of shopping for high-end clothing in one place. Zalora sells products of high quality at a lower price than in offline stores.

Customers can choose between two payment options: online payments via debit card, credit cards, online banking etc. or cash on delivery. It is convenient for customers to select what they like.

Customers can enjoy free shipping if they adhere to the terms and conditions. It offers its customers a 30-day policy for returns, allowing them to feel relaxed when buying products.

2. The Key Activities of Zalora

The platform’s primary activities are to market the products and create sales. Zalora’s main responsibility is to retain and acquire customers. Purchase of popular brands and new products.

Customers’ wants are being tried to be understood, and then the service or item needed by the client is provided. Zalora App Business Model ensures that its customers are satisfied and are always interacting with the products they are being offered. It also manages customer service.

3. Key Partners of Zalora

Zalora is a partner with many suppliers, both local and international. This allows it to offer its customers a wide range of products. Zalora has also partnered up with delivery services in order to offer fast delivery to their customers around the globe. So if you want to develop an app like Zalora, then you must hire dedicated developers.

• Rocket Internet
• Collaborating firms

Asia’s next top model is the latest Zalora partner.

4. Zalora Customer Relationship

Zalora’s email marketing keeps customers informed about all the new products available on its online fashion shopping sites. Also, they send emails to customers who have left items in their cart for a few days. They remind them to purchase the item in their shopping cart. Also, they sent emails with special offers from the company.

• Social media :

It uses social media like Facebook, Instagram and Twitter to communicate with customers, providing them updates about different topics.

Customers who have set up a reminder to receive notifications about new products are notified via push notification.

5. Target Audience of Zalora

Zalora offers products to both men and women customers. Zalora’s target audience is between the ages of 16 and 44 due to their interest in fashion products, as well as the constant need for new items.

Zalora’s main target market is fashion enthusiasts, as they are more likely to purchase their products than other customers. Zalora is more interested in this kind of audience.

6. Cost Structure of Zalora

Costs of operating offices and warehouses – These costs are incurred for the storage and creation of a workspace for the workers, and for providing all the facilities they need.

Zalora, the best ecommerce marketplace, must advertise and promote its brand and products on various platforms such as Facebook, Instagram, Google etc. to attract new customers and to increase the brand value.

7. Zalora’s Revenue Model

Zalora’s revenue comes mainly from advertising on its platform, commissions of third-party vendors, and transaction fees.

• Advertising

Advertising can be used to generate money in many different ways. Zalora displays advertisements primarily on its mobile and desktop platforms. Advertising money can be generated by click-through rates (CTR), costs per click (CPC), or cost per impression (CPI).

• Transaction Fees

It makes money from the transaction charges paid by sellers. Zalora pays its sellers a commission for the sale of their products on its platform.

Competitors of Zalora App

Zalora, an online fashion retailer, competes with Ava, Berrybenka and Smooch the Label. It is different from its competitors due to its customer-centric policies, including having local warehouses located in eight countries for faster deliveries. E-commerce app development has accelerated in order to support online enterprises with well-designed applications like Zalora.

Zalora also has partnerships with fashion designers such as Rizalman Melinda Looi and Jovian Mandagi who create exclusive collections exclusively for the site. To expand its reach and offer more products to customers, the company formed partnerships with Topshop Topman and Globe Telecom.

It is a trusted lifestyle online shopping platform in Southeast Asia because of its expertise and partnerships in fashion and beauty. Tengelmann is one of Germany’s largest retailers and the company wants to use its expertise to become the biggest e-commerce firm in the region.

Zalora App Business Model has maintained its leading position in Asia despite facing fierce competition. Its customer-centric strategy, partnerships with well-known brands and emphasis on timely delivery have all helped to maintain this.

Popular Examples of Similar Apps like Zalora

In this section, we have the most famous apps like Zalora that are given by ecommerce app development services. So let’s have a look:

#1. Amazon:

The world’s biggest internet retailer is Amazon. It allows third-party sellers the opportunity to sell used or new products for a percentage profit. Amazon has over 350,000,000 products, including apparel, jewelry and books, as well as consumer electronics, kitchenware, furniture, toys, baby products, and more.

Amazon delivers in over 100 countries and offers overnight and same-day delivery to certain areas. The mobile app allows you to shop while on the move. Features like price comparisons and personalized ads as well as discounts and sales make it a great online shopping experience.

#2. Etsy:

A website for buying and selling handmade goods is called Etsy. Designers and manufacturers are competing with each other to showcase their creativity. If you are looking for vintage-inspired, personalized art, or gifts, this is the place for you. Users are always looking for something unique in an industry saturated by online fashion shopping uae. Etsy is where they go to find exclusive items, both handmade and manufactured.

#3. Myntra:

Myntra has become a household brand for shopping fashion in India. It is India’s favorite app for online shopping due to its amazing interface and easy navigation. Men, women and children’s clothing is their main focus.

In recent years, they’ve also expanded into selling jewelry, beauty products and home decor. One of the key factors contributing to the platform’s popularity is its affordable costs. Numerous users are drawn to the application by its regular promotions, discounts, and offers.

In order to mirror the most recent fashion trends in the nation, they have also changed themselves. Create a profile and wish list your items. You can create a personal studio. And buy products based upon recommendations from previous purchases.

#4. eBay:

You should first download eBay if you already know what gift you’d like to give your loved one. eBay is a popular online auction site that has been a staple of fashion factory online shopping for many years.

It allows you to find unique products at discount prices. Due to eBay’s extensive range, you may avoid worrying about current market trends. eBay has many out-of-print and outdated items, so you can find the perfect present no matter when you buy it.

#5. Shein:

Shein wants to make fashion affordable for everyone. To support their agile operation, they use on-demand manufacturing. This brand ensures that they reduce inventory waste, and deliver products worldwide. This fashion store online shop, which has customers in more than 150 countries, has grown rapidly within the last decade.

The company employs over 10,000 people due to its successful business model. The interface of the app is easy to use, making it simple to find what you are looking for. The brand wants to disrupt the fashion world by improving outcomes for consumers, suppliers, and manufacturers.

Final Thoughts

You will enjoy reading about the Zalora App Business Model and revenue model. Zalora is one of Asia’s top online fashion destinations. It provides users with amazing clothing and other items. This lifestyle stores online shopping uae is sure to have a brighter and more successful future as long as they continue to meet the needs of their users.

It’s time to make your fashion app idea a reality and become as successful as the Zalora App Business Model. Meet with the right professionals in the industry, discuss your needs and develop the app. If you’re looking for a mobile app development firm with experience, then you must consult with on demand app development solutions.

FAQ