How can a fashion, beauty, and lifestyle retailer with more than 50 million active customers across 25 European markets, from which 10 (soon to be 13) offer beauty, remain elusive to many independent beauty brands in the US? Meet Zalando, the tech-forward shopping platform where millions of millennials and Gen Zers devour the online retailer’s inspiration-led shopping experience and social media (2.0 million followers on TikTok and 2.5 million on Instagram) to fill their baskets with a cross-category assortment.

The European cosmetics and personal care industry was valued at €96 billion ($103.2 billion) at retail sales price in 2023, according to Cosmetics Europe, with its largest cosmetics and personal care markets being Germany, France, Italy, the UK, Spain, and Poland—all Zalando markets.

The Berlin-based platform expanded into beauty in 2018 to meet the demands of its trend-focused customers. By blending luxury brands like Augustinus Bader and Armani Beauty with social-first brands such as ILIA and MILK, Zalando gives its customers the power to seamlessly browse and shop across multiple propositions and price points.

Zalando caters to its social media-savvy customer base by creating original, entertaining content that keeps customers engaged, who then go on to fill their baskets. Last year, the online retailer introduced a livestreaming format where influencers livestream for 45-60 minutes weekly, focusing on beauty at Zalando.

“Ninety-six percent of today’s beauty shoppers, particularly Gen Z, seek inspiration before purchasing and want more than just a transaction,” said Virginie Duigou, Head of Beauty Buying for Zalando. “They want an engaging shopping experience.”

The retailer’s interactive formats drive both customer satisfaction and growth. “Live streaming events let customers explore beauty products in real-time, driving 25% more engagement with beauty products,” Duigou told BeautyMatter. In addition to live streaming, the platform features “Get the Look, Stories on Zalando,” which follows a TikTok/Instagram Reels format, and “Boards,” which gives customers a Pinterest-like experience.

US beauty brands, in particular, perform “exceptionally well,” said Duigou, often resonating strongly with the platform’s fashion-forward, trend-driven customer base. “Given Zalando’s scale and ability to introduce brands in so many diverse European markets, US brands have a significant opportunity to build awareness and drive sales with an engaged audience looking for the latest in beauty.”

Duigou said the platform’s strength lies in its cross-proposition offering. “Fashion goes hand in hand with beauty. We see it in our data; we see how our customers shop. And with beauty, we are just growing and growing.”

But how do US niche brands reap the benefits of Zalando’s cross-proposition platform when the European market has so many regulatory and cultural hurdles? How does a brand conquer the language requirements on labels and product claims? How does a niche brand with little to no name recognition in European countries gain market share?

Zalando has a dedicated team that leverages its data-driven marketing capabilities to help brand partners gain visibility in largely fragmented markets and conquer culture and language barriers.

 The online retailer makes it a priority to ensure brands are prominent in these types of markets. “It goes without saying, but there are so many different ways we work with brands to make them more visible,” explained Duigou. “We have so much data from European customers, and we’re analyzing specific European markets and how to target them. So if you are a brand that is not well known in a market or your products need more explanation and education, Zalando Partner Marketing Services will collaborate with you [the brand] to ensure we are targeting the right audience at the right time.”

Zalando also helps brands navigate European regulatory and packaging requirements. The platform strictly adheres to EU regulations regarding ingredient-based claims, prohibiting unsubstantiated claims for cosmetic products and ensuring Zalando’s brand partners’ compliance. "We provide clear guidance from day one,” explained Duigou. “Our dedicated team checks every product and follows up on the detailed compliance needs while acknowledging the time required for brands to implement those changes.”

According to Duigou, Zalando has two main differentiators: 1) unique beauty-fashion synergies through its fashion platform heritage and 2) an unparalleled inspiration and entertainment-driven shopping experience by combining Zalando’s brand relationships with distinctive tech capabilities. “Uniquely bridging fashion and beauty through our platform expertise,” Duigou added.

Customers who shop across categories on Zalando spend eight times more on average and have 1.5 times higher retention rates than those who shop within a single category. “This multicategory shopping behavior is a clear driver of growth for Zalando and our partner brands. That is why we continue to support cross-proposition shopping behavior with initiatives such as our loyalty program, Zalando Plus, rewarding customers for engaging with multiple categories,” said Duigou. 

Beauty at Zalando is one of the retailer’s fastest-growing propositions, Duigou said. “We see strong customer engagement, increasing demand, and a rapidly expanding assortment, reinforcing our position as a key player in the European beauty market.”

Duigou said that the platform is a tech company in many ways. “Zalando has a pretty huge tech backbone with 3,000 tech employees,” which the company leverages to gather data and perfect the customer’s shopping experience. Zalando is currently experimenting with different PDP [Product Detail Page] formats to integrate inspirational content with curated customer product picks.

The platform’s AI-powered algorithms tailor product recommendations, increasing customer satisfaction and purchase frequency. At the same time, the retailer’s AI-driven “Trendspotter” helps customers stay ahead of emerging beauty trends across key cities, ensuring customers can find and purchase trending products right when demand peaks, from viral skincare sensations to seasonal must-haves, added Duigou.

“As we continue growing our beauty proposition, we remain committed to enhancing the customer experience through innovative technologies and offering brands unique opportunities to engage with a new generation of beauty shoppers,” Duigou said. “This year, we plan to expand our beauty offering by tapping into new categories and increasing brand partnerships. With an expanding customer base, we expect a substantial increase in active beauty customers.  This strategic focus on growth, driven by integrated shopping experiences, innovative content formats, and advanced AI capabilities, positions Zalando to lead the next growth phase in the pan-European beauty market.”

Duigou concluded, “Shopping at Zalando is unique. Seventy-six percent of our customers purchase across multiple propositions, creating a significant opportunity for brands to reach a style-conscious audience who seamlessly integrate beauty into their broader lifestyle purchases.”