Anticipating robust growth in the upcoming year, ZALORA, a prominent player in Asian fashion and part of Global Fashion Group (GFG), is strategically focusing on its platform services, particularly emphasizing logistics and e-commerce solutions. These services, constituting nine percent of the company’s revenue last year, will play a pivotal role in ZALORA’s expansion plans, leveraging Southeast Asia’s thriving e-commerce industry despite prevailing macroeconomic conditions.
As Southeast Asia’s digital economy continues to exhibit resilience, attracting more brands to the region, ZALORA recognizes the challenges faced by brands in terms of setup costs, supply chain intricacies, and meeting consumer expectations for faster deliveries and reliable returns. ZALORA aims to address these challenges by capitalizing on its e-commerce expertise, local knowledge, and an extensive supply chain network.
Matej Urban, Regional Director of Platform Services at ZALORA Group, emphasizes the company’s commitment to scaling up platform services for more effective connections between brand partners and consumers. The strategy involves enhancing logistics systems, supply chain efficiency, and customer targeting to unlock more value for brand partners and cater to evolving consumer demands.
Key Logistics Initiatives by ZALORA:
- One Stock Solution (1SS): Offers unparalleled warehousing and last-mile delivery solutions, consolidating stocks in ZALORA’s E-Fulfillment Centres and providing a comprehensive supply chain infrastructure.
- In-house Order Management System: Streamlines supply chain operations, tracking inventory movements, managing returns, processing orders in real-time, and enabling fast and reliable end-to-end order fulfilment.
- In-house Integration Program: Establishes a dynamic virtual ecosystem for seamless integration of diverse business systems, fostering efficient collaboration with external brand partners.
- International Cross Docking Programme: Provides agile and cost-effective supply chain solutions by minimizing the need for warehousing.
ZALORA’s platform services also include digital store operations, customer relationship management, and production and content creation for e-commerce and social media channels.
The company is exploring the use of technology and artificial intelligence (AI) in its Production Studio to enhance visual content creation, streamline production processes, and optimize budgets.
In the dynamic Southeast Asian region, ZALORA’s E-Store Management service assists brand partners in maximizing their online reach, overseeing online stores, and expanding their presence on social media channels such as TikTok through the ZALORA TikTok Shop.
With a strategic emphasis on logistics, ZALORA aims to position itself as a logistics excellence-driven force in Southeast Asia’s evolving e-commerce landscape.
