In Good Company• Mar 4, 2026• 42:18Interview

Robert Gentz - Co-founder of Zalando | Podcast | In Good Company | Norges Bank Investment Management

From In Good Company

Robert Gentz•Co-founder and co-CEO, Zalando

Executive Summary

Zalando's co-CEO Robert Gentz recounts the company's hyper-growth from a small flip-flop seller in 2008 to a dominant European fashion platform serving over 60 million customers, driven by a 'flywheel' strategy of expanding selection to convert traffic.
The company is heavily investing in technology, using AI for personalized recommendations, body scanning for size prediction, and 3D rendering to reduce high return rates, a key industry challenge.
Zalando is evolving from a B2C retailer into a B2B ecosystem, offering its logistics and software infrastructure to the 7,000 brands on its platform, with major retailers like NEXT already signed on.
Gentz positions Zalando against ultra-low-cost competitors like Temu and Shein by focusing on quality, brand experience, and reliability, arguing they are playing a different, more sustainable game.

12 quotes

Concerns Raised

The rise of ultra-low-cost competitors (Temu, Shein) is increasing advertising costs and capturing price-sensitive market segments.
Increased price consciousness among consumers in key markets like Germany could impact spending.
Fragmented European stock markets and regulations create structural disadvantages for European companies.

Opportunities Identified

Scaling the new B2B logistics and software service to thousands of brand partners.
Leveraging AI and data from 60M+ customers to perfect size prediction, reduce returns, and enhance personalization.
Expanding the ecosystem beyond fashion into adjacent lifestyle categories like sports and beauty.

Key Themes

Hyper-Growth and Scaling Strategy

Zalando experienced explosive growth, scaling from €6 million in revenue in 2009 to over €1.2 billion by its fourth year. This was achieved through a 'flywheel' model: systematically increasing product selection to convert broader search traffic, then expanding from shoes to fashion, and from Germany across Europe.

This provides a powerful case study for European startups on how to achieve rapid, multi-dimensional scaling by identifying and relentlessly executing on a core growth loop.

Technology as a Competitive Differentiator

Zalando is leveraging technology to solve core e-commerce challenges. This includes an AI assistant for natural language queries, body scanning for size recommendations (used by 1M customers), and developing 3D rendering from 2D images to give customers a better sense of products and reduce returns.

This highlights how incumbent platforms are using advanced tech not just for efficiency, but to fundamentally improve the customer experience and solve costly operational problems like returns.

Platform Evolution: From B2C to B2B

A key strategic shift is the launch of a B2B service that allows brands to use Zalando's sophisticated logistics and software infrastructure. This transforms the company from purely a retailer into an ecosystem operator, creating a new, significant revenue stream by serving its brand partners.

This illustrates a mature platform strategy of monetizing core operational assets, deepening partnerships, and building a more defensible business model beyond direct-to-consumer sales.

Competing on Quality, Not Price

In response to the rise of ultra-low-cost competitors like Temu and Shein, Zalando is deliberately positioning itself as a platform for quality, brand experience, and reliability. The CEO emphasizes that they offer a curated selection and a trusted environment for both consumers and brand partners, rather than engaging in a race to the bottom on price.

This is a crucial strategic insight for businesses facing disruption from low-cost players, demonstrating the importance of defining and defending a value proposition based on factors other than price.

European Economic Patriotism and Challenges

The CEO expresses a strong belief in building globally relevant companies within Europe, viewing it as a 'race for relevancy' against the US and China. He identifies structural disadvantages, such as Europe's 35 fragmented stock markets and burdensome regulations, as hurdles to the continent's competitiveness.

This provides a founder's perspective on the geopolitical and macroeconomic landscape, highlighting the need for policy changes to foster a more unified and competitive European market for technology and business.

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Topics

Zalando e-commerce online fashion platform strategy B2B logistics AI in retail size prediction hyper-growth startup scaling competitive strategy Temu Shein European tech customer experience sustainability in fashion

Processed Apr 10, 2026 yt-dlp + mlx-whisper + Gemini