Continuing the consolidation of the company’s B2B platform, Zalando has invested in Paris, France based B2B fashion platform provider Le New Black:
We are delighted to announce that European leader in B2B fashion e-commerce, Le New Black has received financial investment from Zalando, Europe’s leading online fashion platform, to further leverage market opportunities
Le New Black calls itself a “a suite of innovative tools for the fashion industry.
A 24/7 fashion week dedicated to brands, buyers & agents.”.
European leader in B2B fashion e-commerce, Le New Black, has received financial investment from Zalando, Europe’s leading online fashion platform, to further leverage market opportunities.
Since its foundation 2009, Le New Black has been a pioneer in the digitalization of B2B buying systems in the industry. The Berlin-based Zalando holds a minority stake within Le New Black capital, led by its double expertise in fashion and web, its product, and its growth potential in an expanding market.
The financial support allows Le New Black to reinforce its service to brands, agencies, and retailers.
„The investment gives us the opportunity to reach the next strategic milestone: Gathering the main market players of the value chain in order to offer the most comprehensive B2B e-commerce tool“, said Co-founder and President Vidya Narine. Le New Black continues to develop its activity as an independent structur under current management.
Le New Black, founded in 2010, has over 250 brands and over 10.000 multi-brand retailers as partners in 110 “involved” countries.
“The transaction volume on the platform should reach €100M by the end of the year,” explains Vidya Narine, CEO and founder of Le New Black, a Paris-based company hosting digital showrooms from 250 contemporary- and high fashion brands like Ami, Paco Rabanne, Sessùn, Etudes or Baum und Pferdgarten, among others. By the end of 2014, the transaction volume reached by the platform was of €25M, so if Narine’s expectations are reached, the company will experience this year a growth of 400%.
Vidya Narine, founder of Le New Black, about the business model:
The business model is very simple – brands rent an online showroom space for a year. For example, if they were to go to a trade show they would rent a space for four days in one city. (…)
For example, more established brands work with agents all around the world so their agents have access to view orders and live statistics. Their buyers can see the collection in the price list matching with their territories.
You may see a pattern here: Recently Zalando bought marketplace services provider Tradebyte, helping fashion brands and retailers “to help digitize the stock”. Le New Black’s slogan is “Digitize Your Wholesale”. Zalando also recently invested in Anatwine, sort of a UK based alternative to Tradebyte.
As I recently laid out, Zalando is very much building an (all of the fashion industry encompassing) B2B platform.
We are rapidly getting to a place where fashion brands can not avoid the Zalando universe, even if they would want to.
Already, there are more than 120 brand shops on Zalando from companies like Nike, G-Star or adidas.
- Zalando buys Marketplace Services Provider Tradebyte to Bolster Platform Strategy
- Zalando’s Platform is, Unfortunately, Closer to Rocket Internet than to Amazon
- Zalando’s Plans for the Coming “Fulfillment by Zalando” Service
- Zalando Media Solutions & the Diversification of Revenues at Big Online Retailers