Investing in Zalando
One of the most important apparel retail companies in Europe is Zalando. The German company has generated high revenues in recent years, also increasing its stock market value.
This company has been a reason for investment by many individual investors. In fact, 21.27% of the company was purchased by a Swedish company called Kinnekiv AB through investment.
If you are interested in learning more about the investment opportunities presented by Zalando, here we bring you everything you need to know. From the company’s track record, its strengths, weaknesses, to how to invest in Zalando.
What is Zalando?
Zalando is a digital retailer that specializes in selling fashion and style garments throughout Europe. This company was founded in 2018 by Robert Gentz, David Schneider and Rocket Internet Company.
This German-based company has sought to create a stable and reliable platform to sell quality garments to all its users. The headquarters is located in Berlin, Germany. However, it has sales operations in more than 17 countries across the continent.
This company recorded a low number of employees of only 13,763, for 2019. Which could be worrying for a fashion company. However, its online platform for sales allows it to do without many non-essential staff. Reducing costs and improving the company’s profits at the same time.
Zalando has been in a constant growth since its foundation. It stands out for providing high quality garments to its customers and has large revenues. Including €6,483 million (EUR) in net revenues and €4,333 billion (EUR) in assets. Reason for Zalando’s high stock price on the stock exchange.
Investing in this company has brought excellent returns to investors who decided to buy NASDAQ Zalando shares. Since in 2020 alone, it has registered increases of 34.39%, 40.11% and up to 178.98%.
This company has advertisements across major social networks such as Instagram and Facebook. All of these, including Pinterest, are looking to enter the e-commerce industry. This will help the company’s sales to rise and Zalando stocks on the stock market to increase by 2021.
Buying Zalando shares: Advantages
- Customers throughout Europe. With presence in more than 17 countries, providing quality garments throughout the continent. So it has a large amount of monthly sales. Which positively influences the Zalando share price.
- It has a completely digital platform. Integrating advertising on social networks such as Instagram and Facebook. In addition to having a fixed clientele and recommendations among users. Which improves the company’s sales and increases the price of Zalando shares.
- The shares have shown a regular rise in value. Especially in 2020. Where the shares have risen from 7.69% to 256.3%. Which shows the great profitability of buying a Zalando share.
- Large amount of monthly income. Including customers all over the continent. Both new buyers and previous customers who have been satisfied with your products. This high level of revenue helps to improve Zalando’s share price.
- Garments of excellent quality. Including the best European materials and German quality tailoring. This high quality is one of Zalando’s attractions and the reason why it is the brand of choice for so many of the company’s revenue-generating customers.
Buying Zalando shares: Disadvantage
- It has been involved in several controversies over the years. Including the creation of false belief that the stock of garments was running out. Generating a greater urgency from customers to buy them. Which generated negative reviews during 2015.
If you want to learn how to buy on Zalando, here we will teach you everything you need to know. First, you need to choose a reputable broker. Below we bring you the ones we have trusted the most for their security and ease of use in 2020.
After choosing a broker, the next step to invest in Zalando is to register your account and load the balance. To finally buy the company’s stock. All you have to do is follow the instructions below.
- Access the official website of the broker of your choice and look for the registration button.
- Fill in all the information requested for the account creation.
- Verify your account by opening the link that the broker will send to your email.
- Charge the balance to your account with a TDC or digital wallet. You must charge enough to buy the Zalando shares. So it is important to check the price of these.
- Once you have the money loaded, look for the stock. This company trades as FWB: ZAL and ETR: ZAL.
- Click on the buy button, wait for verification and you’re done. You will see your actions reflected in your portfolio.
- Read the latest news about Zalando’s sales and decisions. Depending on these, the value of Zalando shares may increase or decrease.
- Check the company’s sales record regularly. Because the more sales increase and the more popular the company becomes, the higher the value of the Zalando stock exchange shares.
- Remember to check how much a Zalando share is worth before selling a share. Checking what is the total return on your investment.
- Consider the profitability of buying shares in savings mode, rather than simply putting money aside. By 2020, increases in the value of Zalando stock of up to 178.98% have been seen.
The best way to see the stock’s profitability is to analyze past increases and its earnings. One of the biggest increases happened from January 2019 to November 2020, with an increase of 256.3%. If an investor buys Zalando shares for €1,000 – €10,000 (EUR), he will get €3,563 – €35,630.