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Zalando SE

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Zalano

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About Zalando
 European e-commerce company based in Berlin, Germany.
 The company follows a platform approach
 Offers lifestyle and fashion products to Customers
 Presence in 17 European Markets
 Founded in Germany in 2008
 Kinnevik – largest stakeholder with a 32% share.
History

“ Founders -  Rocket Internet, Robert Gentz


and David Schneider
Started initially with the name Ifansho
Inspired by US online retailer Zappos.com
Initially specialised in the sale of footwear

2012 -
• Started operations
outside Germany
2010 – 2011 –
• Expansion to
• Launch in • Opened online retail Sweden, Denmark,
Netherlands and sites in the UK, Norway, Finland,
France Italy and Belgium Spain and
• Added apparel to its Switzerland. Poland
portfolio
2008 – Founded. Initially
started with specialisation of
footwear.
Changes since 2013
 Changed into a European Digital Platform
 Inspired by Chinese companies, remakes itself into a digital shopping mall.
 Allows fashion houses and retailers to make sense via the partner program
 Often assisted with limited input from Zalando.
 2014 – Listed on the Frankfurt stock exchange
 2015 –
 Included in MDAX
 Collaboration with Topshop and begin selling merchandise online.
 Advertisements featuring the model Cara Delevingne were broadcast in Germany, Switzerland and
France
 The fashion trade fair “Bread and Butter” was acquired by Zalando.
Changes since 2016
 2016 –
 The first edition of "Bread&&Butter by Zalando" took place in 2016, hosting 20,000 visitors in the
Arena Berlin
 2018 –
 Zalando launched Beauty in Germany, Poland and Austria and opened a beauty concept store in Berlin.
 Zalando added beauty and care products for men to its portfolio
 Introduced its loyalty program "Zalando Plus" to customers in Germany.
 Expands its collaboration with physical retailers in Germany
 Announced the discontinuation of "Bread&&Butter" due to a shift in strategy.
 2019 –
 Opened a new logistics site in Brunna, Sweden
 Handing over its first own logistics site in Brieselang, Germany to Fiege Logistics.
Business Model
 Customer centric
 "the starting point for Fashion" in Europe
 300,000 products by almost 2500 different brands in Fashion and Lifestyle.
 Customer-centered shipping, return and payment policies
 Payment options such as "payment after delivery" or "cash on delivery“
 Return Policy: Customers can return items within 100 days after purchase.
Strategy

1. Create unique experiences for 1. Fashion Store

Business Fields
Platform Strategy Now
customers

Investment and Growth


• Offer an extensive assortment of
2. OffPrice
current season trends with maximum 3. Zalando’s Private Labels
availability. 4. New Business Fields
• Personalized recommendations
• Investment in supplier, payment and
customer services
• Zalando (Style Advice Area)
• Zalando Fulfilment solutions
• High level
• Smoother and simple Return process.
2. Find specific solutions for brand
partners
• Zalando Marketing Services
• Zalando Partner Services of brand
• Draw on a wide customer base.
• Stock integration directly on Zalando
awareness
platform.
• Digital and infrastructure services - in
the areas of analytics, advertising and
• Large
customer
logistics
3. Investment in infrastructure
• Logistics
• Data Analysis
• base
Role
Justification
Senior Product Manager - Finance  Companies worked in : Racetrack.ai, FIS, Trimax and
recently in Knowis (Ideation to launch and iteration)
Technology (Pricing Tools &  Discover new product opportunities – Racetrack.ai( Real
Automation) Estate, Online sale of investment products, Support
initiatives, Pricing recommendations/Options Priority
Matrix)
 Manage the full product life cycle from
ideation to launch and iteration  Review and refinement of end-to-end processes(FIS,
Racetrack.ai, Knowis AG)
 Discover and define new product  Completing user observations and interviews( 30
opportunities by reviewing and refining end different client co-ordinations in FIS, Active co-
to end processes, ordination with the Consulting team, Vendors and end
users in Trimax, Collaborative development in Knowis )
 completing user observations and interviews
 Interaction between multiple teams :
 Aligning product requirements and  Knowis AG(Development, Testing , Cloud, Product
interactions between multiple product teams Success and Strategy Team,
 FIS(Product Strategy, LMS, Content Writers, Architects,
Testing, Legacy, Data Analysts).
 Racetrack.ai(COE, R&D, Developers, Testers, Content,
Digital Marketing)
Role

Senior Product Manager - Finance


Technology (Pricing Tools &
Justification
Automation)
 Responsible for Agile Product alignment, backlog  Release Communication Activities,
grooming, sprint planning and retrospectives in Implementation Issues, Correction sprints,
the team Design Sprints, Retrofits)
 Manage stakeholder expectations and  Presentation to stakeholders, Training to end
communication
users, User Manuals, Product
 To bring our core stakeholder groups with us on Communication, Trade shows and Events.
the product development journey
 Developing Objectives and KPIs
 Own and evaluate results against fact based KPIs,
and decide the next steps
15 Key Product Management Metrics and KPIs

1. Monthly recurring revenue (MRR)


2. Customer Lifetime Value (CLTV or LTV)
3. Customer Acquisition Cost (CAC)
4. Daily Active User/Monthly Active User ratio
5. Session duration
6. Traffic (paid/organic)
7. Bounce rate
8. Retention rate
15 Key Product Management Metrics and
KPIs
1. Churn rate
2. Number of sessions per user
3. Number of user actions per session
4. Net Promoter Score (NPS)
5. Customer Satisfaction Score (CSAT)
E-Commerce Pricing Strategies

 Cost based Pricing  Loss Leader Pricing


 Market based Pricing  Price skimming
 Dynamic Pricing (with Dynamic Price Engines)
 Consumer based Pricing
 Bundle Pricing
 Penetration Pricing
 Price Discrimination
Pricing Products
1. Wiser solutions -  Helps retailers and brands turn omnichannel data into action that
increases revenue, reduces costs, and improves marketing effectiveness,
1. pricing intelligence, repricing, MAP monitoring, brick-and-mortar retail auditing, and
more
2.  gathers and analyses billions of data points using a unique combination of data science
and human validation
2. Omnia’s Dynamic Pricing - pricing optimization software based on price elasticity of
products through an intelligent core algorithm
3. Skuudle - an end-to-end online competitive intelligence provider that provides price
and product intelligence for enterprises and SMEs, 
4. Price Watch - pricing optimization software that helps to compare, set the prices
automatically and anticipate market trends.
Pricing Products
 DATAWEAVE: Provides competitive intelligence and digital shelf analytics to
eCommerce businesses and consumer brands by aggregating and analyzing Web
data at massive scale. The company’s AI-powered technology platform enables
eCommerce businesses to make smarter pricing and merchandising decisions to
drive profitable growth, and consumer brands to protect their e-commerce presence,
improve availability, and enhance product discoverability.
 Ideation >>
FIS – Vision , Mission and Strategy

Vision Events
 We lift economies and communities by
advancing the way the world pays, banks  FIS Connect
and invests  FIS Infocus
Mission
 Connecting merchants, banks and capital markets
 Apply our deep expertise and data-driven insights
 Innovate with purpose to solve for our clients’ future
 Deliver experiences that are more simple, seamless and secure to advance the way
the world pays, banks and invests.
Product Vision- Endevour
 To provide next generation experience to clients and provide advantage of speed,
insights, control and optimization.
 Market size – 7 billion
 Competitors – Fiserv, Finastra, Temenos, Infosys , Oracle Financials
 Revenue from Retail operations – lending, deposits etc. 300 million.
 Number of users per day = 150000
 Number of transactions per month = 15 million
Racetrack.ai – Competitors
 Niki.ai
 Tawk.io
 Facebook
Racetrack.ai – Revenue
 Increased revenue by 1.5 million$ through reduction in Customer Acquisition
Costs, increase in Monthly Recurring Revenue and Retention Rate.
Objectives and Key results
 Building automated replies
 Building automated conversations
 Convert prospects to leads – 10000 in 3 months
 Number of user actions per session = 3
 Reduce Bounce rate from 90% to 70%
 Enable all customer information
 Guide customer through options and priority driven approach
 Increase user actions to 6
 Reduction in churn rate
 Increase product recommendation integrations
 Increase user actions to 7 steps
 Reduced Customer acquisition costs by 36%
 increase in Monthly Recurring Revenue
Product Management KPIs
 Business performance KPIs
 Product usage KPIS
 Product Development KPIs
 Product quality KPIs
 Cross-functional KPIs
Business Performance KPIs
 Revenues(monthly)
 Bookings(monthly)
 Funnel(weekly)
 Retention
 Attrition
 Churn
 Customer lifetime value
 Customer counts
 Velocity(monthly to quarterly)
 Gross margin
 Market position
 Product usage KPIs
 Users(monthly)
 Users per feature of transaction volumes
 Time to X(MONTLY)
 Product Management KPIs
 Delivery on time
 Team Velocity
 Resource availability
Product quality KPIs
 Support ticket/escalation
 Testing( each sprint)
Cross – functional collaboration
Zalando – founding principles
 Customer focus
 Entrepreneur values
 Speed
 Team spirit

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