Asset Manager Investing in Global Technology Sector

We're an asset manager allocating 100% of our capital into public companies and cryptocurrency assets driving disruptive innovation globally. We serve as a family office of an Asia-based HNW family whose key members have made their fortune in the technology industry and are believers in technology as the key enabler of disruptive innovation. We seek to continue the family's legacy in creating and preserving wealth through technology investing.

Our small investment team is made up of diverse professionals who researches, identifies, and executes relevant opportunities. While we are not accepting outside clients and investors at the moment, we occasionally share some of our internal investment memos, market commentaries, and analysis here.

Friday, June 5, 2020

Q2.2020 - Zalando: Growing Through The Partner Program Strategy

  • With an ambition to reach €20 billion of GMV in 2023/2024, the company will need to more than double its current €8.2 billion GMV.
  • Much of the growth will come from the Partner Program, which is expected to make up 40% of GMV in 2023.
  • Through ZMS and ZFS extensions of the program, the company will onboard more brands into the platform, eventually driving more GMV.
  • The increase in order volume, as a result, will also drive efficiency in fulfillment, which still has room for improvement.

The Berlin-based Zalando (OTCMKTS: OTCPK:ZLNDY) presents an interesting investment opportunity in the fashion eCommerce space. With €8.2 billion GMV (Gross Merchandise Value) as of 2019, it is the current market leader in Europe. The executive team, which still consists of the co-founders, has also executed very well. The company consistently grows its top-line by +20% while maintaining strong unit economics. Going forward, we see various opportunities the company can tap into to achieve its €20 billion GMV target in three years. In particular, we expect the Partner Program strategy to be the key growth driver.

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