Zalora Rumors To Be Preparing For IPO


Zalora Rumors To Be Preparing For IPO

Zalora, is a top fashion ecommerce startup located in South East Asia. It operates mainly between Hong Kong, Philippines, Malaysia, and other surrounding countries. Ecommerce has been blooming lately in Asia with one startup planning for IPO after another. Much of the middle class have been spending more and the economy is looking strong for Asia.

Zalora startup


Zalora is one of the most visited online fashion ecommerce website. The company received it’s initial fundings from JP Morgan and a few other private equity firms. Zalora gained a lot of popularity through marketing campaigns. Rumors say that the company used so much money on marketing that in 2012, the startup was in a net negative income of US$91 million. In March 2013, Zalora was reported to be shutting down its regional operations in Taiwan, although the company said that it was streamlining and moving some functions to Singapore. The managing director did however, say that they have dropped their marketing budget by over 60% since 2012. The company has also branched out to create their own fashion brand. The brand was named Ezra. Right now, Ezra only offers womenswear collection, but it will expand to men’s apparel in the near future. Ezra itself will be sold exclusively on Zalora’s main platform. Instead of using their money on marketing, the startup concluded that branching out to designing their own brand is the best way to go.

The startup claims that 25% of their sales come from mobile and that they will be focusing more on mobile advertising and selling. We have been seeing a lot of startups and tech companies revamping their mobile interfaces lately. For example Pinterest fully understands the importance of mobile and have been moving towards revamping the mobile side of their site. Zalora has over 22,000 products per country with over 200 brands making it one of the biggest overall ecommerce sites for fashion. Another company that is similar to Zalora is the American retail giant Zappos. Both hold a huge amount of inventory at once.

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