Boozt, Zalando, & Nordic Online Fashion
Former Director at Boozt
inpractise.com/articles/boozt-zalando-and-nordic-online-fashion
Boozt
Why is this company interesting?
Founded in 2007 as an outsourced Nordic fashion partner to brands, Boozt pivoted to pure-play online retail in 2011. Through Boozt.com, the company sells fashion and home products and off-price items through Bootzlet.com. Over the last 7 years, revenue has grown 34% CAGR to over 500m EUR in a 40bn EUR Nordic market.
Boozt buys and owns all inventory and is positioned as a premium offering for brands relative to Zalando. Boozt’s reported AoV after returns is ~80 EUR vs Zalando’s 43 EUR and the estimated 5-year LTV / CAC is over 4x.
The competitive advantage of Boozt is a curated assortment, quick fulfilment and a scaled Nordic customer base that brands can leverage. The big challenge is how Boozt can compete with Zalando’s scale, range, and marketing power.
Boozt, Zalando, & Nordic Online Fashion(October 11, 2021)
Former Director at Boozt
The executive has over 23 years of fashion retail experience offline and online. He enjoyed 8 years at Boozt where he was responsible for managing large supplier accounts, rolling out new categories such as Beauty and Home and finally leading Group Strategy as part of the executive team.
In Practise Notes
- Boozt seems to have had a bad past experience experimenting with 3P marketplace model where brands weren't committing enough stock to 3P so Boozt now prefer to own inventory
- Interesting insight that Boozt's AoV is inflated relative to ZAL because of the lower return rate
- The home category has a lower return rate which improves Boozt AoV
- Boozt will need to improve content and editorial to attract more premium brands.
- Interesting comment that adding the beauty category didn't materially improve AoV or conversion but adding different price segments within the fashion category did. Maybe the shopping journey's and customer mindset is different?
Interview Transcript
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