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1、The economic impact of Zalando in EuropeA report byIndexExecutive summar?Introductio?Zalando Fashion and mor?Estimating Zalandos economic impac?Zalandos economic impact in Europe 4.1 Direct impact 4.2 Indirect impact 4.3 Induced impac?Zalandos economic impact on Germany 5.1 Direct impact 5.2 Indirec

2、t impact 5.3 Induced impac?Zalandos economic impact in Erfurt 6.1 Zalando in Erfurt 6.2 Direct impact 6.3 Indirect impact 6.4 Induced impac?ConclusionAppendix:Methodology371119222829373944454749505556586063The Economic Impact of Zalando in EuropeIntroductionZalando Fashion and moreEconomic impactEur

3、opeGermanyErfurt,GermanyConclusionExecutive summaryWith a revenue of 10.1 billion and around 50 million active users in 2023,Zalando is one of the leading multi-brand fashion online destinations in Europe.1 Originating in Berlin,Germany,the company started as an online shoe store and quickly evolved

4、 into a pan-European fashion platform,connecting various stakeholders in the fashion ecosystem.Today,the company serves 25 European markets.Besides fashion,tech and logistics have become cornerstones of Zalandos business model aiming to increase customer satisfaction,for example,by shortening delive

5、ry times and adjusting to local preferences concerning aspects like relevant assortment and delivery options.Zalando commissioned Oxford Economics to quantify the companys economic impact in 2023.The analysis covers the companys direct gross value added(GVA),number of employees,and taxes paid.Moreov

6、er,we also estimate Zalandos economic impact through its supply chain(indirect effect)and wages paid by Zalando and its suppliers(induced effect).This report covers the economic impact of Zalando in several regions,including all of Europe,Germany,and Erfurt,a city in Germany that harbours one of Zal

7、andos logistics centres.?Zalando,Zalando:Geschaftsbericht 2023|Zalando Corporate,2024.The Economic Impact of Zalando in EuropeIntroductionZalando Fashion and moreEconomic impactEuropeGermanyErfurt,GermanyConclusion03Zalandos economic impact in EuropeIn 2023,Zalando supported a total gross value adde

8、d of 9,521.6 million in Europe.Almost 60%of this effect was driven by the companys supply chain(indirect effect).Since Zalando acts as a fashion retail platform,Zalando spends a significant amount on procuring fashion stocks,as well as non-merchandise products like IT services supporting the functio

9、nality of their website.The European countries benefitting most from the economic activity stimulated by Zalandos supply chain include Germany,the Netherlands,Poland,Italy,and France.Furthermore,wage payments by Zalando and its suppliers stimulated 25%of the total gross value added(induced effect).W

10、ith 1,500.4 million,the direct effect accounted for 16%of Zalandos total economic impact in terms of gross value added in Europe.The gross value-added multiplier is estimated to be 6.3,meaning that for every 1 direct gross value added,Zalando supported and stimulated a further 5.3 gross value added

11、somewhere else in the European economy.Moreover,we estimate that Zalando supported around 113,000 jobs in total across Europe in 2023.As with gross value added,most of the jobs,70,000,were supported through Zalandos supply chain.Via wages paid,Zalando and its suppliers supported another 28,000 jobs

12、representing about 25%of the total impact.With 16,000 jobs,direct employment accounted for 14%of all jobs supported.Thus,we estimate that for every one person directly employed at Zalando,another 6.1 jobs were supported in the companys supply chain and through wages paid.Procurement expenditures wit

13、h more than 5,300 companies demonstrate the width of Zalandos operations as a fashion,logistics,and tech company.About 57%of total procurement(around 8,380.7 million)was spent on merchandise,mainly covering products sold on the Zalando platform;this included,for instance,clothing or beauty products.

14、The remaining 43%was spent on non-merchandise procurement,covering logistics and IT services,among other things.Total gross value-added contributions of Zalando to the European economy in 2023Total number of jobs supported by Zalando in Europe in 2023Indirect effect:5,649m/59%Induced effect:2,372m/2

15、5%Zalando:1,500m/16%Indirect effect:70,000/61%Induced effect:28,000/25%Zalando:16,000/14%9,521.6m113,000The Economic Impact of Zalando in EuropeIntroductionZalando Fashion and moreEconomic impactEuropeGermanyErfurt,GermanyConclusion04Zalandos economic impact in Germany and ErfurtIn Germany Zalandos

16、home market Zalando contributed a total of 4,807.6 million in gross value added to the countrys GDP in 2023.With 1,410.4 million in gross value added Zalandos own operations accounted for around 29%of the total impact.Through its supply chain,the company supported another 2,299.2 million in gross va

17、lue added(indirect effect)constituting the largest contribution across all three impact channels with 48%.Through wages paid by Zalando and its suppliers,the remaining 1,098 million(23%)in gross value added was stimulated through the spending of wages by employees and suppliers(induced effect).The c

18、ompanys multiplier for gross value added is therefore estimated to be 3.4,indicating that for every 1 direct gross value added contributed by Zalando,another 2.4 gross value added was contributed somewhere else in the German economy.We estimate that Zalando supported 53,000 jobs via all three channe

19、ls in Germany in 2023.15,000 of these jobs are direct employees of Zalando.Furthermore,27,000 jobs were supported by Zalando through its supply chain with German suppliers and 11,000 were supported via the induced effect,representing economic activities in typical consumer sectors that are triggered

20、 by wage payments of Zalando and its suppliers.Based on these numbers,we estimate that for one direct employee of Zalando in Germany,another 2.5 jobs were supported somewhere else in the German economy.Total gross value-added contributions of Zalando to the German economy in 2023Indirect effect:2,29

21、9m/48%Zalando:1,410m/29%Induced effect:1,098m/23%4,807.6mThe Economic Impact of Zalando in EuropeIntroductionZalando Fashion and moreEconomic impactEuropeGermanyErfurt,GermanyConclusion05In total,Zalando contributed 1,328.5 million in tax payments to the German treasury in 2023.Direct tax payments b

22、y Zalando accounted for 205.4 million,consisting of 139.2 million in social security payments and 66.2 million in corporate income taxes.2 Furthermore,Zalando collected 423.6 million in value-added tax.Through its suppliers,the company further supported 812.9 million in tax payments(indirect effect)

23、.Lastly,wage payments stimulated 310.2 million in tax payments in the consumer economy,including for example,spending on groceries,restaurants,and entertainment.In Erfurt,Zalando contributed a total gross value added of 144 million to the local GDP.As Zalando operates one of the largest logistic cen

24、tres in the city,the direct contribution accounted for most of the total impact with 119.5 million.A further 6.8 million in gross value added was stimulated through the companys supply chain(indirect effect).Wage payments by Zalando and its suppliers in Erfurt supported the remaining 17.6 million in

25、 gross value added,stimulated through spendings in the consumer economy(induced effect).We estimate that Zalando supported 2,460 jobs in Erfurt.Most of these people were directly employed by Zalando(2,200 people).Moreover,90 and 170 jobs in Erfurt were supported by Zalando through its supply chain(i

26、ndirect effect)and wage payments(induced effect),respectively.The Economic Impact of Zalando in EuropeIntroductionZalando Fashion and moreEconomic impactEuropeGermanyErfurt,GermanyConclusion06?Corporate income tax paid and payable for fiscal year 2023Introduction01The Economic Impact of Zalando in E

27、uropeIntroductionZalando Fashion and moreEconomic impactEuropeGermanyErfurt,GermanyConclusion07IntroductionZalando,today one of the leading multi-brand online fashion destinations in Europe,started selling shoes online in 2008.While founded in Berlin,the company expanded quickly across Europe.Today,

28、the company serves 25 European markets.Throughout this expansion,Zalando learned a key lesson that has been essential to the companys strategy:although Europe might seem to be a single market,customer preferences and tastes vary widely across countries.Logistics and tech have been key in addressing

29、this,as well as building the companys competitive advantage by promoting customer convenience and driving innovation in the fashion ecosystem.The Economic Impact of Zalando in EuropeIntroductionZalando Fashion and moreEconomic impactEuropeGermanyErfurt,GermanyConclusion08“Zalando is a European compa

30、ny.We are proud to contribute substantially to Europes economic development.The report highlights how Zalando,as a native digital company,drives sustainable growth and innovation,creates jobs,and empowers businesses of all sizes to thrive in the digital economy a path we will continue to pursue.”Rob

31、ert GentzCo-CEO,Zalando SEThe Economic Impact of Zalando in EuropeIntroductionZalando Fashion and moreEconomic impactEuropeGermanyErfurt,GermanyConclusion09Performing an economic impact assessment provides new insights into Zalandos impact on the European economy especially considering its curated p

32、latform business model.An economic impact assessment quantifies the total economic impact of a company,covering its direct gross value added,the number of people it employs,and taxes paid.Furthermore,the indirect effect is estimated,including the economic impact,through Zalandos entire supply chain.

33、Lastly,the economic impact assessment also covers the induced effect,that is,the economic activity stimulated in the consumer economy via wage payments of Zalando and its suppliers.Conducting an economic impact assessment including indirect and induced effects can therefore help to understand the to

34、tal economic impact of platform companies in more detail.Zalando commissioned Oxford Economics as an independent party to quantify the companys economic impact in 2023.As a European company,we first estimated Zalandos economic impact in Europe,before assessing the impact on Germany.Lastly,we estimat

35、e the economic impact of Zalando in Erfurt,a city in Germany where Zalando operates one of its largest logistics centres,as a local example.We performed the economic impact assessments based on Oxford Economics Global Sustainability Model.The model draws on international input-output tables displayi

36、ng trade relationships between sectors and countries.While most economic impact studies include the companys activities in the region analysed only,the Global Sustainability Model includes trade feedback.Thus,we assessed the economic impact of Zalandos global activities on the region analysed.For th

37、e subnational analysis in Erfurt,we developed a bespoke model of the German economy that enabled us to estimate Zalandos economic impact in smaller areas,such as city districts.?In Chapter 2 we introduce Zalando as a company and its business model?In Chapter 3 the methodology is briefly described.Mo

38、re detailed information can be found in Appendix 1.?In Chapter 4 the economic impact assessment for Europe is presented?In Chapter 5 we describe our results for the economic impact estimations in Germany?In Chapter 6 the subnational analysis for Erfurt can be found?In Chapter 7 we conclude the repor

39、t.The report is structured as follows:The Economic Impact of Zalando in EuropeIntroductionZalando Fashion and moreEconomic impactEuropeGermanyErfurt,GermanyConclusion10Zalando Fashion and more02The Economic Impact of Zalando in EuropeIntroductionZalando Fashion and moreEconomic impactEuropeGermanyEr

40、furt,GermanyConclusion11With a revenue of 10.1 billion in 2023,Zalando is one of the largest online multi-brand fashion destinations in Europe.3 Founded in 2008,the company has rapidly evolved from an online shoe store operating solely from Berlin to a leading shopping destination building a fashion

41、 ecosystem across Europe.The company expanded quickly from the German and Austrian markets in 2008/2009 to the Netherlands and France in 2010,and Italy,the UK,and Switzerland in 2011.4 Today,Zalando records around 50 million active customers and almost 245 million orders in 2023.5Although Zalando st

42、arted as a fashion retailer,the business model evolved with a growing customer base,as well as new digital technologies.While the Zalando Fashion Store on web&app is still at the core of the business,its aim today is to create an ecosystem for fashion and lifestyle around and beyond Zalando.This mea

43、ns opening up its logistics and tech infrastructure offering an operating system to enable brands e-commerce throughout Europe on and off Zalando,while differentiating through quality,lifestyle expansion as well as inspiration and entertainment across the customer journey.?Zalando,Zalando:Geschaftsb

44、ericht 2023|Zalando Corporate,2024?Zalando,Zalando:Our history:from start-up to grown-up|Zalando Corporate,2024?Zalando,Zalando:Zalando auf einen Blick|Zalando Corporate,2024.The Economic Impact of Zalando in EuropeIntroductionZalando Fashion and moreEconomic impactEuropeGermanyErfurt,GermanyConclus

45、ion12To address and connect all stakeholders of the fashion ecosystem,Zalandos operations can roughly be classified into three areas fashion,logistics,and technology.They constitute the cornerstones of Zalandos business model operations in the B2B and B2C business and are some of the differentiators

46、 of the company from competitors.Fashion has been at the heart of Zalandos business model from the beginning.In the Zalando fashion store,customers can purchase fashion and lifestyle products from local or international brands,as well as Zalandos private labels.6 As of 2024,about 6,000 brands sell t

47、heir products on the platform across fashion,lifestyle,and beauty products.Moreover,Zalando provides six of its own in-house brands,completing the selection of items available to customers.On the fashion store,there are more than 1.8 million products available.7In addition,Zalando runs Outlets and a

48、 shopping club,Lounge by Zalando,where the company offers products on sale.8 In the Outlets,Zalando offers items from previous seasons,single sizes,or those with minor defects at a reduced price.As of 2024,there were 15 Outlets,all located on the main shopping streets in large German cities.?Zalando

49、,Zalando:Zalando auf einen Blick|Zalando Corporate,2024?Zalando,Zalando:Zalando auf einen Blick|Zalando Corporate,2024?Zalando,Zalando:Eine ganzheitliche Strategie fur eine vernetzte Modewelt|Zalando Corporate,2024.Figure 1:Core areas of Zalandos business modelFashionLogisticsTechThe Economic Impact

50、 of Zalando in EuropeIntroductionZalando Fashion and moreEconomic impactEuropeGermanyErfurt,GermanyConclusion13Logistics is the backbone of Zalando and is becoming increasingly important as the company expands its business.While it enables Zalando to supply its growing customer base across Europe,th

51、e company is also fostering its B2B business by leveraging its logistic capabilities and network for brands and other retailers.Optimising logistic processes helps Zalando to enhance the customer experience.With several fulfilment and return centres across Europe,Zalando is ideally placed to optimis

52、e the customer experience.The main challenge is delivering articles fast,which requires that they are stored as close to the customer as possible.If,for example,a French customer is supplied by a French logistics centre,the delivery process is typically quicker than if the product is shipped from Sw

53、eden.While this cannot always be ensured,tech and algorithms help to predict demand for specific products.This,in turn,helps to identify the optimal logistics centre for new articles,as well as returned ones that are still up for sale.Furthermore,Zalando aims to package all articles ordered in one p

54、arcel whenever possible.Although this complicates logistics further,it reduces costs for Zalando and the environment.This was confirmed by Marcus Daute,Director of Logistics Products&Strategy,who summarised the companys approach:“The overall goal of Zalandos logistics operations is to optimise the u

55、ser experience while ensuring efficient cost management.”Brands and retailers can choose from a wide range of B2B solutions in line with their needs.Zalando offers a variety of logistic services to partners.This includes Zalando acting as a wholesaler allowing brands to sell their products through Z

56、alando,with Zalando handling logistics and customer service.Alternatively,the Partner Program enables brands to retain ownership of their stock and sell directly to customers,with access to analytics and marketing services.Lastly,Connected Retail helps brick-and-mortar businesses to sell online by s

57、yncing inventory and managing orders through the Zalando platform.Furthermore,Zalando offers several partner services,relating to marketing and logistics starting from fulfilling and shipping orders to managing returns.“The overall goal of Zalandos logistics operations is to optimise the user experi

58、ence while ensuring efficient cost management.”Marcus DauteDirector of Logistics Products&StrategyThe Economic Impact of Zalando in EuropeIntroductionZalando Fashion and moreEconomic impactEuropeGermanyErfurt,GermanyConclusion14With the launch of ZEOS,Zalando goes one step further and is opening up

59、its logistics infrastructure,software and service capabilities to be a key enabler for e-commerce transactions of brands and retailers,regardless of whether they take place on or off the Zalando platform.ZEOS helps brands with their omnichannel business operations.9 Thus,brands have one centralised

60、system to manage their sales via multiple channels,such as their own online shop or other European online shopping platforms.More details on the logistics solutions offered can be found in Box 1.The size of Zalandos network is one of the key reasons for businesses to use Zalandos logistic solutions.

61、Brands selling on the Zalando platform can reach about 50 million active users in 25 European countries.Moreover,all partners benefit from Zalandos well-established logistic network across Europe,covering 12 fulfilment centres with two further centres under construction and around 20 return centres.

62、10 Thus,all customers can be reached comparatively quickly,resulting in shorter delivery times an aspect that is becoming increasingly important for customers and is a key differentiator to other companies.Through its size and partnerships with last-mile carriers,the company can also balance out flu

63、ctuations of orders between brands.Its adaptation to local standards differentiates Zalando from competitors.Although companies might identify Europe as one single market,customers expectations concerning payment methods,delivery options,and return services differ widely between countries.An example

64、 is provided by Marcus Daute,Director of Logistics Product&Strategy at Zalando:“Scandinavian customers prefer to pick up their deliveries at a pickup station,whereas Italian customers prefer packages to be delivered to their doorstep”.These national specifics are incorporated into Zalandos logistics

65、 network,making it highly valuable for partners and one of Zalandos biggest assets.“Scandinavian customers prefer to pick up their deliveries at a pickup station,whereas Italian customers prefer packages to be delivered to their doorstep.”Marcus DauteDirector of Logistics Products&Strategy?Omnichann

66、el business operations describe business operations that are spread across different selling channels.This may include a companys own website,fashion retailer platforms like Zalando,and other retailers and wholesalers?Zalando,Zalando Logistics|Zalando Corporate,2024.The Economic Impact of Zalando in

67、 EuropeIntroductionZalando Fashion and moreEconomic impactEuropeGermanyErfurt,GermanyConclusion15Logistic solutions offered by ZalandoThe order will then be processed by Zalando.To optimise the return process,Zalando operates a system of specialised return centres that are close to the sales market

68、spread across Europe.ZEOS is a new operating system to manage multi-channel business operations across Europe.13 The service typically involves brands shipping their stock to one of Zalandos 12 logistics centres,with Zalando managing the rest of the process including packaging,delivery,and returns.M

69、ost importantly,this service is extended to other purchases made via other platforms than Zalando.Thus,brands can use one service to manage their sales via multiple channels including the brands own online shop or other European online shopping platforms.There are several modules concerning logistic

70、s available for Zalando partners:Zalando Shipping Solutions(ZSS),Zalando Fulfilment Solutions(ZFS),Zalando Return Solutions(ZRS).Moreover,with ZEOS Zalando offers multi-channel fulfilment.In the ZSS,the brand receives the order purchased by the customer online.11 It gets all the data,labels,and docu

71、ments,and prepares the parcel which will then be delivered to the Zalando outbound sorting centre.From here on,Zalando sorts and ships the parcels,using its last-mile carrier network.If ZFS is used,the products are sent to the Zalando logistics centre first.Once the customer places the order,Zalando

72、 prepares and packs the parcel before it is then sent to the customer via the Zalando logistics network.With this option,multi-brand purchases made can be delivered in one parcel.ZRS is a service for managing returns.12 Customers can return all articles in one box to Zalando.After receiving them and

73、 organising the reimbursement,Zalando sends the articles back to a Zalando fulfilment centre,where they are stored until they are ordered again.?Zalando,Zalando:Zalando Shipping Solutions|Zalando Corporate,2024?Zalando,Zalando:Zalando Return Solutions|Zalando Corporate,2024?Zalando,Zalando:Productiz

74、ing Zalandos Capabilities:Introducing ZEOS|Zalando Corporate,2024.Figure 2:Logistic SolutionsThe Economic Impact of Zalando in EuropeIntroductionZalando Fashion and moreEconomic impactEuropeGermanyErfurt,GermanyConclusion16HelsinkiStockholmBerlinDortmundZurichDublin“The tech hubs are located where t

75、alent is concentrated.”Andrew WattsSenior Vice President Product ManagementAnother core area of Zalandos business model is tech a cross-cutting matter,enabling all business operations and driving differentiation.Tech is essential to the company,covering the Zalando App and Website to payment process

76、es;managing and optimising the logistic network;and providing services to partners,such as brands.Moreover,the company constantly develops innovative tech products that differentiate it from competitors,such as Size&Fit(see case study“Size and fit”in Box 4).Clearly,“Tech is part of the DNA of Zaland

77、o”as Andrew Watts,Senior Vice President Product Management,puts it.More than 3,000 tech experts and six tech hubs operated by Zalando,and spread across Europe,support Zalandos business model with fast innovation.According to Andrew Watts,“The tech hubs are located where talent is concentrated”.Altho

78、ugh there is no clear-cut differentiation between tech hubs content-wise,some tech hubs are more specialised than others.ZEOS,for example,is mostly maintained and developed by the tech hub in Stockholm.Figure 3:Zalando tech hubsThe Economic Impact of Zalando in EuropeIntroductionZalando Fashion and

79、moreEconomic impactEuropeGermanyErfurt,GermanyConclusion17“The overall goal of Zalandos logistics operations is to optimise the user experience while ensuring efficient cost management.”Marcus DauteDirector of Logistics Products&StrategyIn terms of logistics,tech helps with inventory allocation and

80、transport routes.Algorithms are,for example,used to identify the optimal fulfilment centre to deliver an item to.Addressing this,Christian Bierwirth,Director of Product Management at Zalando states:“We aim to predict demand for specific products across Europe to keep transport distances as short as

81、possible.To do so,we leverage several aspects and methods such as machine learning,pattern recognition,forecasts,and campaigns running on the Zalando shop”.Notably,the larger the basket size,the harder it gets to optimise transport routes and distances especially if all items ordered are supposed to

82、 arrive at the customer in one single package.Yet,keeping transport to a minimum and aiming to send all items in one package reduces costs for Zalando as well as the environment.Besides emissions,waste is reduced since items are not additionally packaged for transport between fulfilment centres.Tech

83、 also plays a key role in warehouse management,supporting local staff and increasing efficiency.Thus,for example,tasks in the logistics centre are optimised to reduce walking distances and increase efficiency.Tech improves the user experience for customers engaging with the Zalando platform.Zalandos

84、 goal is to successfully bring inspiration,entertainment,and e-commerce together.This includes inspiration elements such as Stories on Zalando,personalised outfit recommendations or an AI-powered assistant that can understand complex queries and offer matching products.Moreover,a presentation of cur

85、rently sought after items in 10 European fashion capitals enables customers to stay up to date about whats trending.Size&Fit is another example of a service offered and developed by Zalando to help customers order correct sizes a major challenge in the fashion industry.The products developed by Zala

86、ndos tech team generate valuable insights for brands an aspect the company leverages for its B2B business.The findings generated are utilised in platform portals and tools offered by Zalando,including,for example,zDirect,a portal that provides partners with data and tooling14 to support them with ar

87、ticle creation whenever new articles are put on the platform;performance overview including sales insights;and further platform services.Moreover,Zalando offers marketing services(ZMS).?Zalando,Zalando:zDirect:Zalandos Partner Program portal|Zalando Corporate,2024.The Economic Impact of Zalando in E

88、uropeIntroductionZalando Fashion and moreEconomic impactEuropeGermanyErfurt,GermanyConclusion18Estimating Zalandos economic impact03The Economic Impact of Zalando in EuropeIntroductionZalando Fashion and moreEconomic impactEuropeGermanyErfurt,GermanyConclusion19We assess the economic impact of Zalan

89、dos global operations on the European economy using a standard analytical framework,known as an economic impact assessment.This involves quantifying the three economic impact channels,namely the direct,indirect(supply chain),and induced(wage expenditure)channels(Figure 4):The direct impact relates t

90、o the operations at Zalandos sites across Europe.It encompasses the economic activity and employment generated by Zalando at these locations and includes subsidiaries controlled by Zalando in the respective region or country.The indirect impact is the economic activity and employment sustained in Za

91、landos supply chain via the companys spending on goods and services produced in Europe,including demands for goods and services from Europe through Zalandos worldwide operations.The induced impact comprises the wider economic benefits that arise from the payment of wages by Zalando and the businesse

92、s in Zalandos supply chain.Europe-based employees who receive wages spend their earnings in the consumer economy,stimulating further economic activity and jobs.Figure 4:Channels of impactThe Economic Impact of Zalando in EuropeIntroductionZalando Fashion and moreEconomic impactEuropeGermanyErfurt,Ge

93、rmanyConclusion20The three channels of impact combined make up Zalandos total economic impact.We measured these impacts with two metrics:To quantify local impacts in Erfurt,Oxford Economics created a bespoke model of the German economy,allowing us to pinpoint the economic activity stimulated by Zala

94、ndo in local areas.For all analyses,the direct,indirect,and induced effect are estimated,capturing not only Zalandos direct contribution but also its impact through the supply chain and wages paid by Zalando and in the supply chain.During all steps of our analysis,we ensure consistency across region

95、s.A more detailed description of the methodology is available in Appendix 1.While most economic impact studies assess effects based only on spending that occurs within the countries of interest,this report goes further by assessing the impact of Zalandos global activities on the region analysed.Oxfo

96、rd Economics bespoke Global Sustainability Model captures spending within countries and across their borders,allowing us to estimate the benefits to European countries from Zalandos global procurement and wage payments.We estimate Zalandos economic impact in 2023 on Europe overall,as well as Germany

97、,and Erfurt a city located in the centre of Germany.Using Oxford Economics Global Sustainability Model,we break down the companys contributions for each of these countries and regions.Gross value added(GVA)contribution to GDP.This contribution to GDP includes EBITDA(profits before taxes)and the comp

98、ensation of employees.The compensation of employees includes the sum of gross wages and salaries,social contributions,and other personnel costs.Since EBITDA was not available at the country level,it was estimated on each countrys share of the cost of employment.Employment measured on a headcount bas

99、is for comparability to national statistics.This includes both employed and self-employed jobs.Figure 5:Oxford Economics Global Sustainability ModelStandard approach.plus global linkagesThe Economic Impact of Zalando in EuropeIntroductionZalando Fashion and moreEconomic impactEuropeGermanyErfurt,Ger

100、manyConclusion21The Economic Impact of Zalando in EuropeIntroductionZalando Fashion and moreEconomic impactEuropeGermanyErfurt,GermanyConclusion22Zalandos economic impact in Europe04The economic impact of Zalando in Europe8,381m5.325Zalando servesEuropean markets.Zalando procured products and servic

101、es worth 8,381 million from more than 5,300 suppliers spread across Europe.For every 1 gross value added by Zalando,a furthergross value added were sustained somewhere else in the European economy.Note:Gross value added(GVA)comprises the added value created in the production process.113,000Total num

102、ber of jobs supported by Zalando in Europe in 202370,00061%16,00014%9,521.6mTotal gross value-added contributions of Zalando to the European economy in 2023ZalandoZalandoIndirect effectIndirect effectInduced effectInduced effect1,500m16%2,372m25%5,649m59%28,00025%The Economic Impact of Zalando in Eu

103、ropeIntroductionZalando Fashion and moreEconomic impactEuropeGermanyErfurt,GermanyConclusion23Zalando generates important direct economic contributions in Europe through its on-site operations,including its logistic centres,tech hubs,and head offices(direct impact).However,Zalandos economic footprin

104、t extends well beyond its direct economic activity.To supply customers with fashion and lifestyle products,and businesses with a range of services,Zalando buys a variety of inputs from third-party suppliers.This includes merchandise spending,such as fashion items,and non-merchandise spending coverin

105、g logistics and marketing.These third-party suppliers will have their own suppliers,meaning that Zalando stimulates substantial economic activity along the whole of its European supply chain(indirect impact).Employees of Zalando and those of its suppliers earn wages which are then partially spent in

106、 the consumer economy for example,in restaurants stimulating additional economic value throughout the European economy(induced impact).In this section of the report,we describe Zalandos economic contributions in Europe across these three channels of impact,measured in terms of gross value added(GVA)

107、,and jobs.The Economic Impact of Zalando in EuropeIntroductionZalando Fashion and moreEconomic impactEuropeGermanyErfurt,GermanyConclusion24Across all three channels of impact,we estimate that Zalando supported a total contribution of 9,521.6 million to the GDP of European countries in 2023.To provi

108、de more context,this is almost a third of Cyprus entire annual GDP in the same year.15Large shares of this total effect are driven by Zalandos supply chain and wages paid.As a platform that sells lifestyle and fashion products,the companys impact is largest through its supply chain.With a supported

109、gross value added of 5,649.3 million,the indirect effect accounts for almost 59%of the companys total impact.The second largest contribution is caused by the wages paid by Zalando and its supply chain(induced effect).Here,the company supports 2,372 million gross value added accounting for a further

110、25%of the total impact.The remaining gross value added is contributed by Zalandos activities itself generating another 1,500.4 million in gross value added in Europe.This suggests that for every 1 in gross value added directly generated by Zalando,a further 5.3 is supported elsewhere in the European

111、 economy.In addition,we estimate that Zalando supported 113,000 jobs in Europe in 2023,which was more than half of total employment in Iceland in 2023.16 About 62%(70,000)of these jobs were supported through Zalandos supply chain alone pronouncing the importance of the companys procurement for its i

112、mpact on the European economy.Another 24%(28,000)were supported through wages and salaries paid(induced effect)and 14%(16,000)were directly employed by Zalando.17 In total,the job multiplier effect supported by Zalando is 7.2,meaning that 6.2 jobs were sustained in European countries for every job d

113、irectly employed at the company.DirectIndirectInducedFigure 6:Zalandos total impact on the European Economy,by Metric and Channel,2023Contribution to GDPJobs supported16,00070,00028,0001,5000.4m5,649.3m2,372.0m9,521.6m113,000?Cyprus GDP was 29,807 million in 2023.Eurostat,Statistics|Eurostat(europa.

114、eu),2024?Employment in Iceland amounted to 196,000 in 2023.Eurostat,2024,Statistics|Eurostat(europa.eu)?Individual numbers do not add up to total due to rounding.Source:Oxford Economics based on Zalando SEThe Economic Impact of Zalando in EuropeIntroductionZalando Fashion and moreEconomic impactEuro

115、peGermanyErfurt,GermanyConclusion25Kazar “Unlock”Europe with ZalandoKazar is a Polish retailer of shoes and accessories,operating in the region since 1990.As a leading fashion brand,it seeks to inspire people to“celebrate life”through its products and experiences,with a vision of becoming a leading

116、global supplier of elegant footwear.Deciding in 2020 to work more actively towards this goal,Kazar began a forceful expansion focused(primarily)on opening more retail outlets.However,it encountered two issues:1)it lacked the manpower and specialised knowledge for international expansion,and 2)defici

117、encies in its own logistics operations were blocking the path forward.Thus,Kazar realised it needed to adapt and focus its energies on expanding its online presence.Which is where Zalando came into the picture.In 2021,Kazar decided to partner with Zalando as the company could serve as an incremental

118、 channel,and it gave Kazar access to millions of new customers.In particular,Zalando Partner and Zalando Logistics Solutions allowed Kazar to access the European market in the way it had envisioned,i.e.,growing its online visibility and reach.After about two years,the company crossed a threshold of

119、more than 200,000 orders placed since they joined Zalando.Moreover,with 18%returning customers on average,Kazar exceeds the industry average of 10%notably.The growth did not stop there.Since 2022,Kazar piloted the new ZEOS multi-channel fulfilment taking its business to new heights.Launched in Octob

120、er 2023,ZEOS supports brands in managing their e-commerce business acting as a kind of one-stop-shop for all operations.Kazar was one of the first retailers to join ZEOS and to great success.When Kazar heard of the fulfilment solution,the company immediately knew it wanted to utilise this new capabi

121、lity as ZEOS aligned with its goal of improving logistics and getting their products to customers faster.Radomir Kiepas,B2B Development Partner at Kazar Group stated:“The truth is that ZEOS offering is revolutionary.When we heard about the new multi-channel fulfilment solution,we knew we wanted to b

122、e a part of it and expand to new marketplaces.We have big ambitions for the upcoming years and are happy to see ZEOS roadmap matching them”.Within the first month of trading,Kazar increased its net merchandise value(NVM)by 148%.With ZEOS extensive network,Kazar deepened its understanding of the reta

123、il market in different locations,enabling it to expand to 22 countries and grow its assortment width by 88%.Its former operational Achilles heel was all but eliminated,as evidenced by Radomir Kiepas,stating:“We have enabled international warehousing,which allows us to ship from localised fulfilment

124、centres,for example in Italy or Sweden.Before,the estimated delivery to the Netherlands was 35 days.Currently,our Dutch customers are getting their order the next day.”The Economic Impact of Zalando in EuropeIntroductionZalando Fashion and moreEconomic impactEuropeGermanyErfurt,GermanyConclusion26To

125、gether with Rithum18,Kazar navigated the complexities of marketplace integration and increased its efficiency,allowing the company to focus on other parts of its business.Even as a smaller,local Polish brand,Kazar was able to cater its collections to different audiences in a hyper-localised way,ther

126、eby“unlocking”new parts of Europe and taking it a step closer towards its vision of becoming a leading global brand.?Rithum is an end-to-end e-commerce solution that Kazar has partnered with since 2020 for strategic advice.The Economic Impact of Zalando in EuropeIntroductionZalando Fashion and moreE

127、conomic impactEuropeGermanyErfurt,GermanyConclusion274.1 Direct impactZalando made substantial contributions to GDP and employment across countries in Europe through its own operations.In 2023,Zalando directly contributed 1,500.4 million in gross value added to GDP in Europe.To put this in context,t

128、his corresponds to 3%of the value added in the whole textiles industry(NACE code 13)in Europe in 2023.19 The cost of employees accounted for 1,053.5 million,consisting of compensation of employees,social security contributions,and other personnel costs for company benefits such as sponsored gym memb

129、ership.The remainder,446.9 million,represents the profit before taxes(EBITDA).Alongside its gross value added contribution,Zalando employed 16,000 jobs across Europe in 2023.With the companys headquarters and a large share of its own-site operations located in Germany,most of Zalandos workforce was

130、employed in Germany(96%of Zalandos employees).Figure 7:Zalandos direct impact on the European Economy,by metric,2023JobsGVA16,0001,500.4mSource:Oxford Economics based on Zalando SE?Gross value added of the textiles industry was 48.5 billion in 2023.Haver/Oxford Economics,2024.The Economic Impact of

131、Zalando in EuropeIntroductionZalando Fashion and moreEconomic impactEuropeGermanyErfurt,GermanyConclusion284.2 Indirect impactFor its operations,Zalando procures goods and services from suppliers in Europe and across the world.As Zalandos suppliers,in turn,procure goods and services themselves,the c

132、ompany stimulates economic activity throughout its entire supply chain.The gross value added and jobs supported through this channel are captured in the indirect impact.Through this indirect channel of impact,we estimate that Zalando stimulated 5,649.3 million in gross value-added contributions to t

133、he GDP of European countries in 2023.Zalandos largest indirect contribution in terms of gross value added was related to wholesalers and retailers,with 1,174.7 million in gross value-added in this sector.Zalando also stimulated large gross value-added contributions across transportation and storage(

134、1,043.5 million)and business services(753.8 million).Figure 8:Zalandos indirect contribution to GVA in Europe,by sector,2023Source:Oxford Economics based on Zalando SEWholesale and retailTransportation and storageBusiness servicesClothing manufacturingFinancial and insurance activitiesIT and other i

135、nformation servicesReal estate activitiesHuman health and social workElectricity,gas,water supply,sewerage,wasteChemicals and pharmaceuticals1,174.7m21%18%13%11%5%5%4%2%2%2%1,043.5m753.8m625.9m303.2m302.6m219.2m138.9m122.5m113.4mThe Economic Impact of Zalando in EuropeIntroductionZalando Fashion and

136、 moreEconomic impactEuropeGermanyErfurt,GermanyConclusion29Zalandos spending on goods and services sustained an estimated 70,000 jobs across Europe in 2023.Almost a quarter of these jobs were in the wholesale and retail sector(16,000 jobs),a further 14,000 jobs in transportation and storage(20%of th

137、e total indirect jobs),and 11,000 were jobs in clothing manufacturing(15%).To get a more detailed understanding of Zalandos economic impact in Europe,we analysed the indirect impact on a country level as well.This section therefore describes the procurement of Zalando first,highlighting the structur

138、e of its direct suppliers.Next,the estimated indirect impact is displayed for the top five European countries in terms of indirect impact induced by Zalando.In contrast to procurement,which describes how much Zalando procured from which supplier,the indirect impact by country entails the gross value

139、 added and jobs supported in the top five countries throughout Zalandos entire supply chain.Zalandos indirect impact in Europe is based on its procurement of goods and services with third-party suppliers.In 2023,the company spent 8,380.7 million with more than 5,300 suppliers.Out of this total,Zalan

140、do spent the majority with companies in the wholesale and retail sector,amounting to 2,759.4 million on fashion and lifestyle products.A further 1,869 million was spent with clothing manufacturers such as Adidas,Giorgio Armani,and Calvin Klein,among others.Zalando also spent 1,860.4 million on trans

141、portation and storage with logistics companies.20Figure 9:Zalandos indirect impact on the European economy,by metric,2023JobsGVA70,0005,649.3mSource:Oxford Economics based on Zalando SEZalandos procurement?The procurement presented describes the sectors of companies that supply Zalando.To model the

142、economic impact of Zalando,we have implemented a further step,attributing only the profit margin to the wholesale and retail sector.The remaining part is allocated to other sectors,such as clothing manufacturing where most of the gross value is added.Thus,clothing manufacturing is the largest supply

143、ing sector with 3,460 million procurement followed by transportation and storage(1,860 million)and wholesale and retail(1,120 million).The Economic Impact of Zalando in EuropeIntroductionZalando Fashion and moreEconomic impactEuropeGermanyErfurt,GermanyConclusion30Note:The procurement presented desc

144、ribes the sectors of companies that supply Zalando.To model the economic impact of Zalando,we have implemented a further step,attributing only the profit margin to the wholesale and retail sectors.The remaining part is allocated to other sectors,such as clothing manufacturing where most of the gross

145、 value is added.Figure 10:Zalandos procurement by ISIC Sector,2023Source:Oxford Economics based on Zalando SEWholesale and retailClothing manufacturingTransportation,storageIT and other information servicesBusiness servicesFinancial and insurance activitiesMachinery and equipment,necChemicals and ph

146、armaceutical productsPublishing,audiovisual and broadcasting activitiesPaper products and printing2,759.4m33%22%22%8%5%2%2%1%1%1%1,869.0m1,860.4m626.5m392.2m185.7m143.6m81.9m74.1m69.4mWhile the top two procurement sectors highlight Zalandos role as a fashion and lifestyle platform,the importance of

147、transportation and storage demonstrates the role of logistics for Zalando.Similarly,the tech area is also in the top 10 supplying sectors,with IT and information services accounting for 626.5 million.Other procurement expenditures on,for example,business services or machinery and equipment,also supp

148、ort the three business areas of fashion,logistics,and tech.Zalandos procurement consists of 57%merchandise and 43%non-merchandise expenditures.Merchandise spendings cover products sold on the Zalando platform,such as clothing.Non-merchandise expenditures cover all other products or services,such as

149、logistics,marketing,or consulting costs.For merchandise products,wholesale and retail(2,744.5 million),and clothing manufacturing(1,867.8 million)constitute the largest sectors in terms of procurement spending.Ranking third are chemical and pharmaceutical products(81.9 million),covering items like b

150、eauty products.Together,these sectors account for more than 97%of merchandise spending.The Economic Impact of Zalando in EuropeIntroductionZalando Fashion and moreEconomic impactEuropeGermanyErfurt,GermanyConclusion31Figure 11:Zalandos procurement by country,2023Source:Oxford Economics based on Zala

151、ndo SEGermanyNetherlandsItalyPolandSwitzerlandIrelandFranceUKAustriaBelgium3,482.2m42%16%7%6%4%4%4%3%2%2%1,303.3m625.6m531.3m350.1m342.8m298.3m239.5m173.7m171.7mFor non-merchandise expenditures,transportation and storage are the largest supplier sectors(1,860.4 million).IT and other information serv

152、ices rank second(617.8 million),including marketing and software services,and business services rank third(360.6 million).Services concerning logistics,customer care,and personal management are part of this category.These top three sectors account for almost 80%of non-merchandise spending.Representi

153、ng more than 97%,almost all the procurement is within European countries.Overall,Zalando procures the largest share of its products from companies in its home country,Germany(42%).The companies located in the Netherlands account for 16%of procurement,followed by Italy with 7%.Other important supplie

154、rs hail from Poland,Switzerland,Ireland,and France all contributing at least 4%to Zalandos overall procurement.Considering merchandise procurement only,the picture looks similar:43%is spent with suppliers in Germany,23%with suppliers in the Netherlands,and 8%with suppliers in Italy.Large shares of t

155、his can be attributed to wholesalers and retailers.For non-merchandise spending,Germany is the most important market for suppliers,accounting for 39%of all procurement.Ranking second,Polish suppliers contribute 12%to Zalandos procurement,followed by Ireland with 9%.The Economic Impact of Zalando in

156、EuropeIntroductionZalando Fashion and moreEconomic impactEuropeGermanyErfurt,GermanyConclusion32Delivering speed and relevance in Sweden connecting locally as a pan-European companyIn recent years,customers preference for faster delivery has increased.While this development is partly driven by e-com

157、merce actors outside the fashion industry,there are fashion-specific aspects that foster this development.As Masood Choudhry,SVP Fulfilment at Zalando puts it:“Beyond the convenience of receiving something fast,for example,because an occasion is coming up,theres also the emotional side of it.If you

158、are excited about something and then you must wait for a week to get it,the strong inspiration and emotion may have passed.”Since Zalando launched in Sweden in 2012,the country has emerged as one of the most important markets for Zalando,with a highly fashion-conscious customer base.To meet the incr

159、easing expectations around delivery speed and maintain local competitiveness,Zalando has launched 12 day delivery in the summer 2024.The goal of this was to significantly reduce delivery times and ensure that products are available faster than ever before.This strategy focused on identifying and pri

160、oritising a locally relevant product range,ensuring fast delivery of that assortment.Zalando further improves the user experience through localisation and personalisation.The assortment presented to the customer highlights local brands,styles,and trends to present those items first,that are expected

161、 to be most relevant to the respective customer.From a business perspective,this increases the chances that customers will open the Zalando App first whenever they need a fashion or lifestyle product.Besides connecting with the customer through localisation,the company also differentiates itself fro

162、m local competitors through broad reach.Furthermore,if the product is delivered fast,chances increase that the customer will press the purchase button.The Economic Impact of Zalando in EuropeIntroductionZalando Fashion and moreEconomic impactEuropeGermanyErfurt,GermanyConclusion33“To make an informe

163、d decision on inventory trade-offs,we need to bring together both,a good sense of whats important for the local customer in terms of assortment,style,and trends,and using our capabilities to make the product available for fast delivery in a way that considers these trade-offs from a European perspec

164、tive.”Fabio BaumGeneral Manager Nordics&Benelux at ZalandoThe Economic Impact of Zalando in EuropeIntroductionZalando Fashion and moreEconomic impactEuropeGermanyErfurt,GermanyConclusion34Zalandos indirect impact in the top five European countriesThrough its supply chain,Zalando stimulates economic

165、activity across all European countries.While procurement indicates the location of Zalandos supplier and the amount spent with the supplier,the indirect impact by country covers gross value added and employment along the whole supply chain.21 If,for example,Zalando procures a t-shirt from a supplier

166、 in Germany that the supplier itself purchased from a manufacturer in France,the value-added in the production process is attributed to Zalandos indirect impact in France.In contrast,only the margin that Zalandos German supplier applies to the sale of that t-shirt affects Zalandos indirect effect in

167、 Germany.With 2,299.2 million,Zalando stimulated the most gross value added through its supply chain in Germany,corresponding to 41%of the companys total indirect impact in Europe.Moreover,the company supported 598.2 million of gross value added in the Netherlands(11%of Zalandos indirect impact in E

168、urope),505.5 million in Italy(9%),and 411.1 million in Poland(7%).Ranking fifth,the company supported 296.4 million in gross value added in France(5%of the indirect impact in Europe).Almost three-quarters of Zalandos indirect impact on gross value added in Europe are stimulated in these top five cou

169、ntries.GermanyNetherlandsItalyPolandFrance2,299.2m41%11%9%7%5%598.2m505.5m411.1m296.4mFigure 11:Zalandos procurement by country,2023Source:Oxford Economics based on Zalando SE?Please note,the procurement presented in the previous chapter describes the sectors of companies that supply Zalando.The est

170、imates of the companys indirect impact displayed in this chapter are based on procurement after attributing only the profit margin to the wholesale and retail sector.The remaining part is allocated to other sectors,such as clothing manufacturing where most of the gross value is added.For more detail

171、s,see Appendix 1.The Economic Impact of Zalando in EuropeIntroductionZalando Fashion and moreEconomic impactEuropeGermanyErfurt,GermanyConclusion35Similar to Zalandos indirect impact on gross value added,the company also supports employment across Europe through its supply chain.Again,at almost 27,0

172、00,most jobs in the supply chain are supported in Germany(38%of the indirect impact in Europe).With 9,100 jobs(13%),Poland ranks second.This demonstrated the countrys importance for Zalando,especially in terms of logistics as four out of 12 fulfilment centres are in the country.In the Netherlands,Za

173、lando supported around 6,200 jobs(9%)through its supply chain followed by Italy with 6,000 jobs(9%),and France with 3,200 jobs(5%).Across the top five European countries,Zalando supported economic activity in various sectors.In Germany,20%of Zalandos indirect impact(gross value added)was stimulated

174、in the wholesale and retail sector,while 16%was stimulated in the transport sector.The wholesale and retail sector also ranked first in the Netherlands,but with a share of 51%(in terms of gross value added),the sectoral composition of the indirect impact was much more concentrated than in Germany.A

175、similar story can be told in Poland,where the transport sector made up 42%of the indirect impact,confirming the role of Zalandos extensive logistics operations in the country.While transportation also ranked first in France,the sectoral composition was more evenly distributed,with the transport sect

176、or only representing 24%of the total.Lastly,Zalando stimulated economic activity in various sectors in Italy through its supply chain,with the clothing manufacturing sector ranked first,followed by the transport sector.GermanyPolandNetherlandsItalyFrance27,000m38%13%9%9%5%9,100m6,200m6,000m3,200mFig

177、ure 13:Zalandos indirect impact on employment across Europe,top five countries,2023Source:Oxford Economics based on Zalando SEZalandos impact in Europe and in individual European countries demonstrates how the companys platform business model supports economic impact not only in its home country Ger

178、many,but across the continent.While the company handles most of its operations for the European market within Germany(see Chapter 5),Zalandos supply chain spreads wide across Europe.Thus,although the direct impact of the company may be lower in other countries,Zalando still stimulates significant ec

179、onomic activity in these countries through its supply chain.High multipliers in these countries confirm this hypothesis:In France,for example,for every 1 in gross value added generated by Zalando directly,a further 192 contribution to Frances GDP is stimulated elsewhere in the French economy.Conside

180、ring jobs,the multiplier in France was 654 in 2023,meaning that the company supported an additional 653 jobs for every person directly employed by Zalando.The Economic Impact of Zalando in EuropeIntroductionZalando Fashion and moreEconomic impactEuropeGermanyErfurt,GermanyConclusion364.3 Induced imp

181、actIn 2023,Zalando paid its Europe-based employees an estimated 884.3 million in wages and salaries.22 A proportion of these wages,along with the wages and salaries paid to those employed in its supply chain,are spent in the consumer economy,creating further economic activity in the global economy.W

182、e estimate that Zalando supported 2,372 million in GDP in Europe through wage-funded consumption spending in 2023.Of this,about 26%was supported by wage-funded spending of Zalandos own employees(668 million),with the remaining 74%being supported by the wage-funded consumption spending of employees w

183、orking in Zalandos supply chains(1,897 million).Most of this impact was concentrated in typical consumer sectors of the economy,such as real estate(444.4 million),wholesale and retail(312.2 million),and human health and social work(266.7 million).Figure 14:Zalandos induced contribution to GDP in Eur

184、ope,by sector,2023Source:Oxford Economics based on Zalando SEReal estate activitiesWholesale and retailHuman health and social workBusiness servicesFinancial and insurance activitiesTransportation and storageArts,entertainment,recreationElectricity,gas,water supply,sewerage,wasteFood products,bevera

185、ges and tobaccoAccomodation and food services444.4m19%13%11%9%7%5%4%3%3%3%312.2m266.7m202.6m165.9m110.5m94.6m78.0m73.5m68.9m?Includes only compensation of employees.Other cost of employment like social security contributions and other personnel cost are not included.The Economic Impact of Zalando in

186、 EuropeIntroductionZalando Fashion and moreEconomic impactEuropeGermanyErfurt,GermanyConclusion37Wage-funded consumption expenditure by Zalando employees and those working in its supply chain is estimated to have supported 28,000 jobs across Europe in 2023.These jobs were mainly in the healthcare an

187、d social services sector,wholesale and retail,and business services with 5,500,5,000,and 2,500 jobs supported,respectively.Figure 15:Zalandos induced impact on the European economy,by metric,2023JobsGVA28,0002,372.0mSource:Oxford Economics based on Zalando SEThe Economic Impact of Zalando in EuropeI

188、ntroductionZalando Fashion and moreEconomic impactEuropeGermanyErfurt,GermanyConclusion38Zalandos economic impact in Germany05The Economic Impact of Zalando in EuropeIntroductionZalando Fashion and moreEconomic impactEuropeGermanyErfurt,GermanyConclusion39The economic impact of Zalando in Germany an

189、d ErfurtGermanyErfurtFor every 1 gross value added by Zalando,a further 2.4 were sustained somewhere else in the German economy.Erfurt is home to Zalandos first own large-scale logistics centre and plays a key role due to its central location in Europe.About 2,200 employees from more than70 national

190、ities contribute to Zalandos economic impact in Erfurt.For every 1 person directly employed by Zalando,a further 2.5 jobs were supported somewhere else in the German economy.In addition to the taxes directly paid by Zalando,the company collected 423.6 million in value-added taxes for the German trea

191、sury.GVA 4,807.6m totalGVA:144.0m totalJobs:2,460 totalJobs:53,000 totalTax:1,328.5m total1,410.4m direct119.5m direct2,200 direct15,000 direct205.4m directNote:Gross value added(GVA)comprises the added value created in the production process.The Economic Impact of Zalando in EuropeIntroductionZalan

192、do Fashion and moreEconomic impactEuropeGermanyErfurt,GermanyConclusion40With sites in 12 European countries,the economic benefits supported by Zalando spread wide and large across Europe.Yet,as discussed in the previous chapter,much of Zalandos operations take place in Germany as the company is bas

193、ed in Germany.This includes its headquarters in Berlin,one tech hub in Dortmund,three fulfilment centres operated by Zalando in Erfurt,Monchengladbach,and Lahr,as well as 15 Zalando outlet stores spread across Germany.These operations enable Zalando to mainly serve German customers.Therefore,this se

194、ction of the report assesses how Zalando supports the German economy,describing the companys total economic impact(direct,indirect,and induced)measured in terms of contributions to GDP,employment,and tax revenues.Through its activities,Zalando creates a direct economic impact in Germany.Moreover,Zal

195、ando procures products and services from more than 2,000 Germany-based suppliers,causing a further indirect economic impact in the country.Lastly,Zalando and companies in its supply chain pay wages that are partly spent on the consumer economy in Germany stimulating an induced economic impact.The Ec

196、onomic Impact of Zalando in EuropeIntroductionZalando Fashion and moreEconomic impactEuropeGermanyErfurt,GermanyConclusion41Through all three channels of impact,we estimate that Zalando supported a total gross value-added contribution of 4,807.6 million to Germanys GDP in 2023 equivalent to almost 3

197、%of the size of Berlins GDP in 2022.23 Of this contribution,29%or 1,410.4 million was generated by Zalandos directly.Through its supply chain,the company supported another 2,299.2 million in gross value added,corresponding to 48%of the total impact.With 1,098 million,the remaining 23%was stimulated

198、through wage-funded consumption spending of Zalandos Germany-based employees and those of its German suppliers.This implies that for every 1 in gross value added generated by Zalando,a further 2.4 contribution to Germanys GDP is stimulated elsewhere in the countrys economy.Besides the gross value ad

199、ded,Zalando supported more than 53,000 jobs in Germany in 2023 equivalent to 18%of employment in Trier in 2023.24 About 15,000 of these jobs can be attributed to Zalando directly.The company supported a further 27,000 and 11,000 jobs through indirect and induced channels.Consequently,Zalandos jobs m

200、ultiplier in Germany was 3.5 in 2023,meaning that the company supported an additional 2.5 jobs for every person directly employed by Zalando.In terms of fiscal impacts,we estimate that Zalando stimulated a contribution of 1,328.5 million to Germanys government revenues in 2023.This included the tax

201、revenues directly contributed made by Zalando directly(205.4 million),those stimulated through its supply chain(812.9 million),and via wage-financed spending in the consumer economy(310.2 million).DirectIndirectInducedFigure 16:Zalandos total impact on Germanys economy,by metric and channel,2023Cont

202、ribution to GDPTaxes paidJobs supported205.4m812.9m310.2m1,410.4m15,0002,299.2m27,00011,0001,098.0m4,807.6m1,328.5m53,000Source:Oxford Economics based on Zalando SEThe Economic Impact of Zalando in EuropeIntroductionZalando Fashion and moreEconomic impactEuropeGermanyErfurt,GermanyConclusion42?Berli

203、ns GDP was 180,289 million in 2022.Eurostat,Statistics|Eurostat(europa.eu),2024?Employment in Trier was 287,200 in 2023.Eurostat,Statistics|Eurostat(europa.eu),2024.Size&Fit tackling a major challenge for the fashion industryIn most countries,clothing constitutes the number one category of online pu

204、rchases being returned.Thus,returns pose a significant challenge to the fashion industry in terms of cost,logistics,and environmental impact.A major reason for returns in the fashion industry is inconsistencies in sizing across brands.Thus,some customers order an item in several sizes to try all of

205、them on at home,and then they only keep the one that fits best.All other items are returned.However,finding the right sizing constitutes a challenge to the fashion industry beyond online retail as Pelin Anli Bedirhanoglu,Director Product Size&Fit at Zalando states:“The fashion holy grail is how do y

206、ou match customers to assortment given the complexity of sizing systems this problem exists both offline and online.”To address this,Zalando developed a continuously evolving product:Size&Fit.The goal is to provide reliable size advice at scale.Although already available,Size&Fit is continuously bei

207、ng improved upon by a team of around 50 tech experts using artificial intelligence,machine learning,computer vision,deep learning,and statistical analysis.Today,roughly 60%of items sold on the Zalando platform come with some form of size advice.Size&Fit uses customers unique body measurements based

208、on a front and a side body image taken with a mobile device.This helps customers order the right size.Moreover,the presentation of the assortment can be adjusted to align with the customers body shape.Collecting customer feedback on fitting the service also provides an opportunity for brands.It enab

209、les them to understand their customers in detail and adjust accordingly.By understanding the body type and taste of their average customers,brands can adjust their production and reduce overheads.Thus,the technology also provides large opportunities for Zalando and the fashion industry overall to re

210、ach their sustainability goals.The Economic Impact of Zalando in EuropeIntroductionZalando Fashion and moreEconomic impactEuropeGermanyErfurt,GermanyConclusion43“The fashion holy grail is how do you match customers to assortment given the complexity of sizing systems this problem exists both offline

211、 and online.”Pelin Anli BedirhanogluDirector Product Size&Fit at ZalandoSize recommendations with your measurements5.1 Direct impactThrough its tech hub,fulfilment centres,outlet stores,and headquarters in Germany,Zalando generates direct economic contributions to the German economy.In 2023,Zalando

212、directly contributed an estimated 1,410.4 million in gross value added to Germanys GDP,including 420.1 million in profits and 990.3 million in compensation of employees.This was equivalent to around 27%of the gross value added in the textile manufacturing sector(NACE rv 13)in Germany in 2023.25Moreo

213、ver,Zalando employed about 15,000 people in Germany in 2023.This is equivalent to about 3%of all jobs in the German agriculture sector(NACE rv2 01 to 03)in 2023.The company also contributed a total of 629 million to Germanys government revenue.This included tax contributions of 423.6 million through

214、 the collection of value-added taxes,social security contributions of 139.2 million,and 66.2 million in corporate income taxes(paid and payable for fiscal year 2023).Figure 17:Zalandos direct impact on Germanys economy,by metric,2023a)Direct GVA,taxes,and jobs by Zalandob)Direct tax revenues directl

215、y contributed or collected by ZalandoTaxesJobsGVA15,000205.4m1,410.4mSource:Oxford Economics based on Zalando SEPart a of the figure captures taxes tax revenues contributed by Zalando only.(Corporate income tax paid and payable for fiscal year 2023)Part b displays taxes paid and collected by Zalando

216、,including VAT.629m139.266.2423.6TotalCiTVATSocial Contributions?Gross value added in the textile manufacturing sector was 5,280.6 million in Germany in 2023.Haver/Oxford Economics,2024.The Economic Impact of Zalando in EuropeIntroductionZalando Fashion and moreEconomic impactEuropeGermanyErfurt,Ger

217、manyConclusion44Source:Oxford Economics based on Zalando SE5.2 Indirect impactTo sell its fashion and lifestyle products as well as logistics services,Zalando buys goods and services from third-party suppliers,who,in turn,purchase inputs from other companies.The indirect economic activity stimulated

218、 along Zalandos German supply chains adds to the companys economic impact in the country.Zalandos supply chain spending benefitted a range of companies based in Germany.Wholesalers and retailers constitute the largest group of local suppliers benefitting from Zalandos spending,with the company stimu

219、lating about 455 million in gross value-added contributions in the sector.Furthermore,companies active in the transportation and storage industry supplied products and services worth 373.2 million.Business services(worth 325.1 million)constituted another important supplying industry for Zalando.Othe

220、r important sectors include clothing manufacturing,IT and information services,real estate activities,and financial and insurance activities.Figure 18:Zalandos indirect contribution to Germanys GDP,by sector,2023Source:Oxford Economics based on Zalando SEWholesale and retailTransportation and storag

221、eBusiness servicesClothing manufacturingIT and other information servicesReal estate activitiesFinancial and insurance activitiesHuman health and social workChemicals and pharmaceutical productsElectricity,gas,water supply,sewerage,waste455.0m20%16%14%12%8%5%5%3%2%2%373.2m325.1m267.8m183.9m106.2m105

222、.5m58.5m47.5m46.4mThe Economic Impact of Zalando in EuropeIntroductionZalando Fashion and moreEconomic impactEuropeGermanyErfurt,GermanyConclusion45Besides gross value added,we estimate that Zalandos procurement spending sustained almost 27,000 jobs in Germany in 2023.One out of four of these jobs w

223、ere in the wholesale and retail sector(6,600 jobs),a further 4,700 jobs in clothing manufacturing(17%of the total indirect jobs),and 3,700 were in the transportation and storage sector(14%of the total indirect jobs).More than 1,000 jobs(each)were further supported in companies active in the industri

224、es covering business services,IT and other information services,and human health and social work.Lastly,German businesses along Zalandos supply chain contributed 812.9 million to Germanys tax revenue in 2023.This demonstrates that the economic impact of Zalando in Germany extends beyond its own acti

225、vities as the company procures many of its inputs from German companies.Thus,it also stimulates tax payments,benefitting the German budget through its supply chain.Figure 19:Zalandos indirect impact on Germanys economy,by metric,2023TaxesJobsGVA812.9m27,0002,299.2mSource:Oxford Economics based on Za

226、lando SEThe Economic Impact of Zalando in EuropeIntroductionZalando Fashion and moreEconomic impactEuropeGermanyErfurt,GermanyConclusion465.3 Induced impactBesides the direct and indirect channels,Zalando also createsan impact in Germany through the induced effect.It describes the economic activitie

227、s stimulated in the country through the share of wages paid by Zalando,and in the companys supply chain,spent in the consumer economy.This includes expenditures for entertainment and groceries,for instance.In 2023,Zalando paid its 15,000 employees in Germany a total of 832.8 million in wages and sal

228、aries.Combined with the wages and salaries paid to employees in Zalandos supply chain,wage-funded consumption spending in Germany stimulated a further 1,098.0 million in gross value-added contributions to Germanys GDP.42%of the expenditures of Zalandos direct employees in Germany accounted for almos

229、t half of this impact.The remaining 58%were stimulated by wage payments in Zalandos supply chain in Germany.Most of the total wage spending(22%)was stimulated in the real estate sector,followed by human health and social work(12%)and wholesale and retail(12%).Figure 20:Zalandos induced Contribution

230、to Germanys GDP,by sector,2023Source:Oxford Economics based on Zalando SEReal estate activitiesHuman health and social workWholesale and retailBusiness servicesFinancial and insurance activitiesArts,entertainment,recreationTransportation and storageElectricity,gas,water supply,sewerage,wasteAccommod

231、ation and food servicesFood products,beverages and tobacco243.5m22%12%12%8%6%6%4%3%3%3%134.3m127.8m89.9m67.0m64.4m47.7m37.9m28.8m28.2mThe Economic Impact of Zalando in EuropeIntroductionZalando Fashion and moreEconomic impactEuropeGermanyErfurt,GermanyConclusion47Additionally,Zalando helped to susta

232、in the employment of about 11,000 workers in Germany by stimulating wage-funded consumption expenditure in 2023.These jobs were largely supported in the consumer economy,with 2,900 jobs sustained in the human health and social work sector and 1,900 jobs sustained in the wholesale and retail.We also

233、find that Zalando stimulated an estimated induced contribution of 310.2 million in tax payments to the German treasury in 2023.Reflecting the large share of gross value added and employment supported through the induced channel in the consumer economy,most of these tax payments were stimulated in th

234、e human health and social work sector(51.9 million)and the wholesale and retail sector(38.0 million).The Economic Impact of Zalando in EuropeIntroductionZalando Fashion and moreEconomic impactEuropeGermanyErfurt,GermanyConclusion48Zalandos economic impact in Erfurt06The Economic Impact of Zalando in

235、 EuropeIntroductionZalando Fashion and moreEconomic impactEuropeGermanyErfurt,GermanyConclusion496.1 Zalando in ErfurtWith one of Zalandos three Germany-based active fulfilment centres located in Erfurt,Zalando stimulates substantial economic activity in the city.Next to the gross value added and em

236、ployment generated by the company itself(direct impact),Zalando supports the local economy through its supply chain spending(indirect impact)and the wage-funded consumption spending of its employees based in Erfurt(induced impact).The Economic Impact of Zalando in EuropeIntroductionZalando Fashion a

237、nd moreEconomic impactEuropeGermanyErfurt,GermanyConclusion50In 2023,we estimate that Zalando stimulated a total gross value-added contribution of 144.0 million in Erfurt through all channels of impact equivalent to 2%of the size of Erfurts GDP in 2021.26 More than half of this contribution(83%or 11

238、9.5 million)was generated directly by the company.Reflecting the consumption spending of Zalandos many employees in Erfurt,the second-largest contribution to gross value added was stimulated through the induced channel of impact,with 17.6 million or 12%of Zalandos total contribution to the region.Fi

239、nally,the remaining 6.8 million(5%)were supported through Zalandos supply chain.These impacts result in a GDP multiplier of 1.2,implying that for every 1 in gross value added generated by Zalando itself,a further 0.2 in gross value added is stimulated elsewhere in Erfurts local economy.Naturally,the

240、 GDP multiplier in Erfurt is much smaller than in Germany,as a substantial part of Zalandos operations is in Erfurt,but most of the companys supply chain spending,for example,is spent with suppliers outside of Erfurt.Zalando also supported around 2,460 jobs in Erfurt in 2023 equivalent to 2%of emplo

241、yment in Erfurt in 2022.27 With 2,200 workers directly employed at Zalandos fulfilment centre,most of the total employment contribution was generated by the company itself(89%).This reflects the labour-intensive nature of Zalandos logistics centres.The remaining 260 jobs(11%of the total employment c

242、ontribution)were supported through the indirect and induced channels of impact.This suggests that most of Zalandos economic impact in Erfurt both in terms of jobs and gross value-added directly depends on the existence of the local fulfilment centre.While Zalandos procurement and wage expenditure te

243、nds to be more prevalent in other German regions,therefore stimulating larger indirect and induced impacts,the logistics centre in Erfurt is central to the companys own operations,resulting in a higher share of direct gross value added and employment contributions to the local economy.Figure 21:Zala

244、ndos total impact on the local economy in Erfurt,by metric and channel,2023Source:Oxford Economics based on Zalando SENote:sums may not add up to totals due to rounding.?GDP in Erfurt was 9,531 million in 2021.Eurostat,Statistics|Eurostat(europa.eu),2024.?Employment was 113,400 in Erfurt in 2022.Rat

245、haus Erfurt,Beschaftigung|Erfurt.de,2024.2,460Jobs supported2,200144.0mGDP ContributionDirectIndirect effectInduced effect119.5m17.6m17090The Economic Impact of Zalando in EuropeIntroductionZalando Fashion and moreEconomic impactEuropeGermanyErfurt,GermanyConclusion516.8mHow the“largest wardrobe in

246、Europe”supports a local economyErfurt hosts one of Zalandos biggest logistics centres and is the only one that caters to all 25 European markets.The distribution hub has been in operation since 2012 and has more than 2,200 permanent employees working inside the 130,000-square-meter site.It was the f

247、irst logistics centre that Zalando built by itself,developed by Zalando from the“inside-out”with its own ideas,employees,and machinery.Still,even today,the fulfilment centre in Erfurt is“at the centre of Zalandos logistics network”according to Stefan Rutschmann,Site Lead Erfurt.Erfurt was chosen due

248、 to its strategic location,and soon became the backbone of Zalandos logistics.As the geographical centre of Germany and Europe,with connections to a large motorway,having the hub in Erfurt ensures that European customers can be serviced promptly,and it extends the cut-off times for when customers ca

249、n place orders.A significant share of the 190 million items that Zalando sells per year globally,go through the distribution hub in Erfurt.The Economic Impact of Zalando in EuropeIntroductionZalando Fashion and moreEconomic impactEuropeGermanyErfurt,GermanyConclusion52Its high share of human workers

250、 makes the logistic centre in Erfurt so flexible.Increased automation can make a centre inflexible,with little scope to adapt to the external environment.Especially in the fashion industry,capacity utilisation varies notably over the year with peaks during,for instance,Black Friday.To adjust to thes

251、e peaks Zalandos Erfurt location employs several short-time employees.In total,the fulfilment centre is equipped to handle up to 3,000 employees.This flexibility predestines Erfurt for pilots of new technologies,products,or processes.As Erfurt continues to increase automation,the company focuses on

252、increasing employees productivity.As Carsten Bernstein,Director of Operations,states,“Our philosophy is to leverage automation to support our team,enhancing both efficiency and output while working with our existing team”.For Erfurt,Zalando had a great impact as the citys largest private employer,hi

253、ring about 2%of the citys total workforce.This includes a range of different job profiles from technicians and electricians to security,controlling,and quality management.Due to its diverse group of employees covering more than 70 nationalities,the company communicates in five languages besides Germ

254、an in Erfurt,including English,Arabic,and Polish.Moreover,the company introduced a special shift for parents(“Mutti-Vati-Schicht”),disabled employees,and elderly staff members.The fact that workers stay with Zalando for a relatively long time between five and seven years,on average speaks volumes ab

255、out the work environment in Erfurt.Furthermore,as the“biggest wardrobe in Europe”,Zalando was the first of its kind in the industrial park in Erfurt as Nicole Haupt,working for the economic development department in the city stated:“The freight transport centre in Erfurt was built in the 1990s,but t

256、hen nothing happened for 10 or 15 years and it was even considered a problem child in the region.Zalando was then the first large company to come and was a real driving force so that more and more other companies settled here.”Today several other companies have followed suit benefitting from the goo

257、d connection to public transport,infrastructure,and knowledge spillovers promoted by Zalando as Nicole Haupt elaborated.The Economic Impact of Zalando in EuropeIntroductionZalando Fashion and moreEconomic impactEuropeGermanyErfurt,GermanyConclusion53“We are a tech company whose success is powered by

258、 a physical logistics network and state-of-the-art automation.Through ZEOS and together with our brand partners,we will build a pan-European ecosystem for fashion and lifestyle e-commerce.”David SchroderCo-CEO,Zalando SEThe Economic Impact of Zalando in EuropeIntroductionZalando Fashion and moreEcon

259、omic impactEuropeGermanyErfurt,GermanyConclusion546.2 Direct impactThrough operating its local logistic centre,Zalando generates direct economic activity in Erfurt.The company directly contributed an estimated 119.5 million in gross value added to Erfurts local economy.More than two-thirds of the di

260、rect contribution was generated through wages and salaries,with 83.9 million in compensation of employees paid by Zalando in Erfurt.The remaining 35.6 million were generated through profits earned in Erfurt.Moreover,Zalando employed more than 2,200 people in Erfurt in 2023.According to the economic

261、development department in Erfurt,Zalandos direct impact on the city goes beyond the gross value added and pure number of jobs supported.The company also serves as one of the largest taxpayers in the region and is engaged in the local community,supporting several projects like Schulengeln28,donating

262、for the refurbishment of a local sports hall29,and sponsoring local events like the“Kramerbruckenfest”30.The role of the company for the city and its inhabitants also becomes clear considering that“employees of Zalando can regularly be seen across the city wearing their Zalando t-shirts in their fre

263、e time”as Nicole Haupt emphasized explaining“it makes people proud to work for such an innovative big company”.Figure 22:Zalandos direct impact on the local economy in Erfurt,by metric,2023JobsGVA2,200119.5mSource:Oxford Economics based on Zalando SE?Hannah-Arendt-Gymnasium Erfurt,202?Basketall-Lowe

264、n,202?ThAFF Thuringen,2024The Economic Impact of Zalando in EuropeIntroductionZalando Fashion and moreEconomic impactEuropeGermanyErfurt,GermanyConclusion556.3 Indirect impactTo sell its fashion and lifestyle products as well as logistics services,Zalando also buys goods and services from third-part

265、y suppliers,who,in turn,purchase inputs from other companies.This procurement expenditure also affects Erfurts local economy,both through Zalandos own spending with suppliers in Erfurt and through the spending of companies within Zalandos supply chain with other business operating in the city.While

266、Zalando only spent around 0.3%of its procurement expenditure in Germany with suppliers in Erfurt,this spending still benefitted a range of Erfurt-based suppliers.The largest group of local businesses benefitting from Zalandos supply chain spending in 2023 were utility providers,with an estimated gro

267、ss value-added contribution of 2.1 million stimulated with these businesses.Zalando also stimulated around 1.7 million and 1.4 million,respectively,with business service providers and information and communication companies based in Erfurt.Combined,more than three-quarters(76%)of Zalandos indirect c

268、ontribution to gross value-added in Erfurt was stimulated in these sectors.Other suppliers benefitting from Zalandos supply chain spending were realtors,construction companies,and wholesalers and retailers,for example.Figure 23:Zalandos indirect GVA contribution to the local economy in Erfurt,by sec

269、tor,2023Source:Oxford Economics based on Zalando SEElectricity,gas,water supply,sewerage,wasteBusiness servicesInformation,communicationReal estate activitiesConstructionWholesale and retailTransportation and storageManufacturingFinancial and insurance activitiesHuman health and social work2.1m30%25

270、%21%4%4%4%3%3%2%2%1.7m1.4m0.3m0.3m0.3m0.2m0.2m0.2m0.1mThe Economic Impact of Zalando in EuropeIntroductionZalando Fashion and moreEconomic impactEuropeGermanyErfurt,GermanyConclusion56We further estimate that Zalandos procurement spending sustained 90 jobs in Erfurt in 2023.Half of these jobs were s

271、timulated with business service providers,such as legal or management consulting firms.Figure 24:Zalandos indirect impact on the local economy in Erfurt,by metric,2023JobsGVA906.8MSource:Oxford Economics based on Zalando SEThe Economic Impact of Zalando in EuropeIntroductionZalando Fashion and moreE

272、conomic impactEuropeGermanyErfurt,GermanyConclusion576.4 Induced impactThrough the induced channel of impact,Zalando also stimulates economic activity in Erfurt by paying wages and salaries to its employees and by supporting salaries of employees in the companys supply chain,who spend part of these

273、salaries and wages in the consumer economy.This was also explicitly mentioned by the economic development department in Erfurt,describing that Zalandos employees also benefit the city and other local businesses due to wage payments and consumption spending.This wage-funded consumption spending adds

274、to Zalandos economic impact in Erfurt.In 2023,Zalando paid its 2,200 employees in Erfurt a total of 70 million in wages and salaries.Combined with the consumption enabled through wages and salaries paid to Erfurt-based employees in Zalandos supply chain,wage-funded consumption spending stimulated 17

275、.6 million in gross value-added contributions in Erfurt.Most of this contribution was created in the typical consumer economy:35%of the induced gross value-added contribution was stimulated in the real estate sector,14%was with human health and social work service providers,and 13%was with wholesale

276、rs and retailers.Figure 25:Zalandos induced GVA contribution to the local economy in Erfurt,by sector,2023Source:Oxford Economics based on Zalando SEReal estate activitiesHuman health and social workWholesale and retailArts,entertainment,personal servicesBusiness servicesFinancial and insurance acti

277、vitiesInformation,communicationTransportation and storageManufacturingElectricity,gas,water supply,sewerage,waste6.3m35%14%13%10%5%5%4%3%3%3%2.4m2.3m1.7m1.0m0.8m0.8m0.6m0.5m0.5mThe Economic Impact of Zalando in EuropeIntroductionZalando Fashion and moreEconomic impactEuropeGermanyErfurt,GermanyConcl

278、usion58Additionally,Zalando supported the employment of about 170 workers in Erfurt by enabling wage-funded consumption expenditure in Erfurt.Again,sectors within the consumer economy benefitted most from this expenditure,with around 40 jobs(24%)sustained in the human health and social work sector a

279、nd 35 jobs sustained in the wholesale and retail sector(20%).Figure 26:Zalandos induced impact on the local economy in Erfurt,by metric,2023JobsGVA17017.6mSource:Oxford Economics based on Zalando SEThe Economic Impact of Zalando in EuropeIntroductionZalando Fashion and moreEconomic impactEuropeGerma

280、nyErfurt,GermanyConclusion59Conclusion07The Economic Impact of Zalando in EuropeIntroductionZalando Fashion and moreEconomic impactEuropeGermanyErfurt,GermanyConclusion60Over the last 15 years,Zalando has developed from a small start-up selling shoes online to one of the largest online fashion retai

281、lers in Europe.Throughout this expansion,logistics and tech have become increasingly important for the companys business model.On one hand,they enable Zalandos operations across Europe,by,for example,shipping products across countries and providing a smooth and secure checkout process.On the other h

282、and,logistics and tech are also key drivers of innovation and differentiation for the company,helping to shorten delivery times across Europe and providing a localised experience concerning last-mile carriers and delivery methods.Furthermore,services like Size&Fit drive innovation throughout the fas

283、hion ecosystem,helping customers find the right fit when they shop online,thereby reducing unnecessary returns and decreasing the industrys environmental footprint eventually solving one of the biggest pain points of the fashion industry.With its broad customer base,its platform,and its unique logis

284、tics network,Zalando supports local brands to expand throughout Europe.As demonstrated in the case study covering the story of Kazar(see Box 2),brands can benefit from cooperating with Zalando in many ways.This can include selling their products on the Zalando platform,leveraging Zalandos marketing

285、services and data insights,and using Zalandos logistics network.While the networks size enables fast delivery across Europe,its adaptation to local preferences maximises user experience.This includes delivery and payment options adopted to local standards and tastes,among other things.The Economic I

286、mpact of Zalando in EuropeIntroductionZalando Fashion and moreEconomic impactEuropeGermanyErfurt,GermanyConclusion61Through its operations across Europe,the company generates a positive economic impact on gross value added,employment,and taxes paid.The economic impact assessments of Zalando reflect

287、the companys business model.As a Berlin-based platform company,most operations are managed in Germany and hence the company employs most of its workers in Germany.However,employees from 140 countries based in Germany work to enable operations across Europe,serving customers in Germany and beyond.Mor

288、eover,as an online retailer,more than 96%of Zalandos expenditures on procurement benefit other European suppliers.This includes fashion and beauty items,as well as transportation services and business services.Thus,the company has an economic impact on several European countries through its value ch

289、ain,even if local direct operations are limited.Countries benefitting most from Zalandos supply chain include Germany,the Netherlands,Poland,Italy,and France.The economic impact assessment of Zalando demonstrated how a digital company operating a platform business creates real economic and social im

290、pact.We found that Zalando creates a high direct economic impact in those areas where it runs offices and logistic centres.This is the case in Germany(see Chapter 5)and Erfurt(see Chapter 6).However,since most of its procurement takes place across Europe,other countries and regions benefit from Zala

291、ndos activities even if the companys direct engagements are limited.This is the case in Poland and France,where Zalando procures a large share of its supplies.Thus,while Zalandos direct activities as a digital company may be limited to specific locations,it stimulates notable economic activity in ot

292、her regions.Appendix:MethodologyThe Economic Impact of Zalando in EuropeIntroductionZalando Fashion and moreEconomic impactEuropeGermanyErfurt,GermanyConclusion63Economic Impact ModellingWe estimated the economic impact of Zalando using an economic impact assessment.This involves the quantification

293、of Zalandos impact across three channels:example.This channel of gross value added and employment supported by Zalando is captured in the induced effect.Again,taxes stimulated through this channel are only captured in the country analyses.Direct impact:The direct impact captures gross value added an

294、d employment generated by Zalando through its operations in the regions analysed.In the country analyses,the direct effect also captures taxes paid by Zalando.31Indirect impact:Zalando procures several products from suppliers across the world.The estimation of the indirect effect captures gross valu

295、e added and employment stimulated by Zalandos procurement,i.e.,with its suppliers in the region analysed.In the country analyses,we also estimated which taxes paid by Zalandos suppliers can be attributed to Zalandos procurement.Induced impact:Zalandos employees and their suppliers employees earn wag

296、es.These are,in turn,partly spent in the local consumer economy,like on restaurants,for Figure 27:Channels of Impact?Due to differences in national tax systems across the EU,taxes are only considered in economic impact assessments at the national level where taxes are usually collected.The Economic

297、Impact of Zalando in EuropeIntroductionZalando Fashion and moreEconomic impactEuropeGermanyErfurt,GermanyConclusion64In total,we estimated the impact of Zalandos global operations on three regions:Europe,Germany,and Erfurt.This includes the operations of Zalando SE,and all subsidiaries controlled by

298、 it.The analysis refers to data provided for 2023.The key results are summarised in Table 1.Where x represents the national or subnational region of interest and y European data.Considering Germany,for example,we estimated Germanys EBITDA using the share of Zalandos CoE payments in Germany out of to

299、tal payments across Europe and applied it to the EBITDA data provided at the European level.Direct employment numbers were provided by Zalando for all regions analysed.Direct taxes include corporate income taxes and social security contributions paid by Zalando.In addition,we reported VAT collected

300、by Zalando.The estimation of the direct impactsThe direct impacts were calculated using data provided by Zalando.Direct gross value added was estimated by adding total employee compensation(CoE),earnings before tax,interest,depreciation,and amortisation(“EBITDA”).Total employee compensation covers s

301、ocial security contributions and other personnel costs,such as gym subsidies,as well as compensation.EBITDA was only available at the European level due to the platform structure of the company.Thus,we applied a well-established approach to estimate EBITDA at the country and subnational levels using

302、 the following formula:Table 1:Results overviewEUROPEGERMANYERFURTTotal GVA(EUR million)9,521.64,807.6144.0Direct GVA(EUR million)1,500.41,410.4119.5Indirect GVA(EUR million)5,649.32,299.26.8Induced GVA(EUR million)2,372.01,098.017.6Total employment113,00053,0002,460Direct employment16,00015,0002,20

303、0Indirect employment70,00027,00090Induced employment28,00011,000170Total taxesn/a1,328.5n/aDirect taxesn/a205.4n/aIndirect taxesn/a812.9n/aInduced taxesn/a310.2n/aEBITDAxEBITDAyCoEx*CoEyThe Economic Impact of Zalando in EuropeIntroductionZalando Fashion and moreEconomic impactEuropeGermanyErfurt,Ger

304、manyConclusion65The estimation of the indirect and induced impacts in Europe and GermanyTo estimate the indirect and induced impacts of Zalando in Europe and Germany,we used input-output modelling.The academic Wassily Leontief first developed the method and won a Nobel prize for his work.The method

305、is based on national accounts data that specifies how much each industry in a country buys from other industries in the same and other countries in a given year(input-output tables).Oxford Economics Global Sustainability Model is based on this technique capturing supply chain spending across more th

306、an 180 countries.This enables us to estimate the impact of Zalandos global operations on a specific location a fundamental advantage to using a single-country model that does not capture international trade omitting important parts of economic activity.The data underlying the model are first sourced

307、 from the OECD IO table published in 2021 and pertaining to 2015.Using macroeconomic data,the models IO table was forecasted to 2021 and new countries were added to the global IO table.Figure 28:Oxford Economics Global Sustainability ModelStandard approach.plus global linkagesThe Economic Impact of

308、Zalando in EuropeIntroductionZalando Fashion and moreEconomic impactEuropeGermanyErfurt,GermanyConclusion66To estimate the indirect and induced impact of Zalando in the relevant regions,we used procurement data and CoE provided by Zalando.Procurement data were used to prepare an input vector for the

309、 global sustainability model capturing Zalandos demand in 2023.We received two procurement datasets from Zalando containing merchandise data and non-merchandise data.32 Both datasets included the purchasing entity,supplier name,supplier country,postal code of the supplier,product classification,and

310、net purchasing value among other data.The merchandise data also included the country of origin.We prepared the merchandise data by matching supplier companies to sectors in the Global Sustainability Model(displayed in Table 2).Thus,we gained a vector of industries by country and how much Zalando pur

311、chased from each of them.Importantly,the allocation of procurement spending to a sector was based on the industry allocation of the supplying company,not on specific products purchased.This is important to model upstream supply chains i.e.,procurement of the supplying company,their suppliers,etc.cor

312、rectly.In the context of the fashion industry,this is particularly vital as Zalando may procure merchandise products,such as a t-shirt,from either a wholesaler,retailer,or manufacturer,and the supply chains and value-added of companies operating in these industries could differ.Since Zalando procure

313、s a significant amount of its merchandise procurement from wholesalers and retailers,we allocated only a share of procurement from wholesalers and retailers to this sector(wholesale and retail trade;repair of motor vehicles)corresponding to the average profit margin of 40.6%as provided by Destatis.3

314、3 The remaining spending was allocated to the clothing manufacturing sector(textiles,wearing apparel,leather,and related products)in the country of origin reported by Zalando.For example,if Zalando procured a product worth 100 from a wholesaler in the Netherlands that originally came from Malaysia,w

315、e allocated 40.6 to the wholesale and retail trade sector in the Netherlands and the remaining 79.4 to the clothing manufacturing sector in Malaysia.Finally,we combined the allocation to retrieve one procurement vector for merchandise procurement by country and industry.To present the overall impact

316、 of applying this approach for modelling,Figure 29 displays the procurement by country and industry with both approaches.To prepare the non-merchandise data we also matched supplier companies to sectors in the Global Sustainability Model(displayed in Table 1)to gain a vector of industries by country

317、 and how much Zalando purchased from each of them.Since the origin country of the product was not provided,we did not apply the same approach as for the merchandise data allocating every expenditure completely to the direct supplier.Yet,as less than 0.5%of the non-merchandise procurement data were s

318、pent with companies active in the wholesale and retail sectors,we do not expect to receive biased results.?Merchandise data include Zalandos procurement of products that are sold on the Zalando platform,such as clothing and shoes.Non-merchandise data include Zalandos other procurement including logi

319、stics services?Destatis,45341-0001:Unternehmen,Beschaftigte,Umsatz und weitere betriebs-und volkswirtschaftliche Kennzahlen im Handel:Deutschland,Jahre,Wirtschaftszweige:Statistisches Bundesamt Deutschland GENESIS-Online:Tabelle abrufen(destatis.de),2024.The Economic Impact of Zalando in EuropeIntro

320、ductionZalando Fashion and moreEconomic impactEuropeGermanyErfurt,GermanyConclusion67In the non-merchandise data provided,we detected several negative expenditure entries.After discussing with the client,we agreed to drop most of the negative entries since even expenditures made and charged back usu

321、ally stimulate some economic activity.However,some of the negative entries were kept as they were most likely caused by false double bookings.To identify these negative entries,we tested whether(i)the posting date was identical,(ii)the supplier code was identical,and(iii)the value booked was identic

322、al.In other words,we identified bookings of the same value,made by the same supplier and on the same day.Only if all three conditions were met did we keep the negative entry to offset a wrongly booked positive entry.Finally,we summed up all the values by industry and country to retrieve the final pr

323、ocurement vector for non-merchandise procurements.After completing both input vectors,we combined them into one vector summarising procurement expenditure by country and industry.To finalise the inputs to estimate the indirect and induced effects for all relevant regions,we also prepared a vector of

324、 Zalandos CoE by country based on the data provided.After running the Global Sustainability Model,we received the estimated impacts on gross value added,employment,and taxes by country and industry.Zalandos economic impact was thus calculated by summing up all the effects occurring in European count

325、ries,while the impacts for Germany were calculated by summing up all the effects for the respective country.The classification of countries as“European”is based on Oxford Economics classification to ensure comparability across economic impact studies.This left us with the estimated direct and indire

326、ct impact of Zalandos global operations on Europe and Germany.The estimation of the indirect and induced impacts in ErfurtTo model the socioeconomic impacts of Zalandos procurement and employee consumption expenditure in Erfurt,we developed a bespoke,regionalised model derived from Oxford Economics

327、Global Sustainability Model.We first disaggregated the underlying IO table for Germany by NUTS regions and used detailed data on procurement and employee workplace by postcode as inputs to estimate Zalandos economic impacts across Germanys 16 federal states.This allowed us to estimate the effect of

328、Zalandos procurement expenditure with German suppliers and its Germany-based employees consumption expenditure on Thuringias economy,the state Erfurt is located in.Our bespoke model specifically integrates“spillover”effects to account for the economic impact of inter-state trade within Germany,ensur

329、ing accurate regional distribution of impacts.In a second step,we applied the regionalised IO table to allocate Thuringias economic impact across its NUTS3 regions,including Erfurt.Since our regionalised model used only domestic procurement and consumption expenditure data,we adjusted for cross-bord

330、er spillovers that may influence Zalandos economic impact in Erfurt.To align the regional results with the GSMs national estimates,we used the GSMs headline impacts for Germany to recalibrate total national impacts within our regionalised model and proportionally scale the results for Erfurt.The Eco

331、nomic Impact of Zalando in EuropeIntroductionZalando Fashion and moreEconomic impactEuropeGermanyErfurt,GermanyConclusionCase studiesThe case studies included are based on expert interviews as well as information provided online.Concerning the case studies,Zalando established the first contact with

332、the experts.The interviews were conducted virtually and usually lasted around one hour.Although we did take notes during the interviews,we recorded the meetings most of the time to retrieve some direct quotes.The recordings were deleted afterwards.The questions asked were based on a guiding question

333、naire adjusted to each interview candidate and their background.Nevertheless,the interview was conducted in an open format,allowing the expert to focus on their areas of expertise.The Economic Impact of Zalando in EuropeIntroductionZalando Fashion and moreEconomic impactEuropeGermanyErfurt,GermanyConclusion69Quality assuranceTo ensure the quality of the analysis,all parts of the study went through