Understanding Zalando's Season Switch

Zalando's season switch, scheduled for February 15, 2024, leads to the deactivation and blocking of items from the old season that have not been retagged or reduced according to the requirements of the new season. ZFS partners are encouraged to take immediate action to avoid unnecessary storage costs.

Finding the affected items:Partners can obtain a comprehensive overview of the affected stocks and track the changes by reading the article on the Zalando Partner University (ZPU). During the season switch:AW23 and SS23 items with regular prices or discounted prices of less than 10 or 15%, depending on the market, will be deactivated.All AW22 items will be completely removed from the offer. Year Round Basics (YRB) remain unaffected by the season switch.Inventory management with zDirect:Zalando partners can efficiently manage their stocks through the following steps using ZDirect:

Step 1: Identify affected itemsIn this crucial step, Zalando partners must use the zDirect platform to identify items affected by the upcoming season switch. When reviewing the downloaded report, pay close attention to the Gross Merchandise Value (GMV) assigned to each affected item. This metric provides insights into the financial impact of each item. Also, assess the size availability of the products. Check if popular sizes are affected, as this information is crucial for customer satisfaction and future sales.

By diligently following these steps in zDirect, Zalando partners can gain a comprehensive understanding of their affected inventory. Focusing on GMV and size availability ensures that decisions align with both financial considerations and customer demand, contributing to successful management of the season switch.

Step 2: Review inventory stocksIn summary, filters ZABLO_01 and ZABLO_15 provide Zalando partners with a systematic way to categorize and manage their inventory during the season switch. These filters inform decisions regarding retagging, discounts, and other strategies, ensuring that the online catalog remains relevant, meets seasonal requirements, and is optimized for both financial success and customer satisfaction.

Options for reducing old stocks:Let's take a closer look at each of the three options available to Zalando partners once they have identified the affected stocks:

Request for return of stocks:Partners can submit a request for product return directly through the ZDirect platform. The request includes specifying the items marked for return and forecasting the schedule for returning the goods to the partner's warehouse.

Objective: This option is suitable if partners prefer to manage their stocks internally and return the affected items to their own warehouse. This can be beneficial if the partner has the capacity for return logistics and wants to maintain control over their inventory.

Liquidation of stocks:Partners have the option to explore the liquidation of their old stocks through Lounge by Zalando, Zalando's off-price platform.

Objective: Liquidation is a strategy to quickly and efficiently remove old stocks from inventory. This can be an attractive option if partners value speed and want to avoid the logistical challenges of processing returns into their warehouse.

Discount strategy:Partners have the flexibility to keep AW23 and SS23 items online by applying a minimum discount, typically 10% or 15% depending on the market.

Objective: This strategy allows partners to maintain visibility of their products on the Zalando platform. By applying the specified minimum discount, partners can attract customers with reduced prices while ensuring that their items remain available and competitive.

Understanding Zalando's Approach

Managing the retagging process during the season switch is a crucial aspect for Zalando partners to maintain the relevance of their inventory and ensure a smooth transition into the new fashion season. By understanding Zalando's approach and diligently following the steps outlined, partners can effectively optimize their inventory management. Here's a more detailed breakdown of why this process is so important:

Zalando's approach to the retagging process is based on the need to keep the product catalog up-to-date, aligned with the latest fashion trends, and meet seasonal requirements. The platform aims to provide customers with a dynamic and current shopping experience.

The retagging process is a proactive strategy for partners to optimize their inventory. It allows them to identify and update items from the previous season to ensure they remain relevant and attractive to customers amidst evolving fashion trends.

Retagging serves as a mechanism for efficiently reducing old stocks that may become obsolete with the introduction of new seasonal collections. Partners can strategically decide whether to retag, discount, return, or liquidate items based on Zalando's guidelines and their own inventory management objectives.

A well-executed retagging process ensures a smooth transition into the new fashion season. It enables partners to align their offerings with customer expectations for the upcoming season, thereby enhancing the overall shopping experience on the Zalando platform.

Compliance with seasonal requirements:The steps outlined by Zalando for retagging are designed to help partners meet seasonal requirements. This includes adjusting prices, ensuring correct categorization, and updating product information. All of these contribute to maintaining a coherent and organized product catalog. A curated and seasonally updated product catalog contributes to customer satisfaction and loyalty. By offering a wide range of relevant products, partners can attract and retain customers who are more likely to find what they are looking for, ultimately leading to higher customer satisfaction and repeat business.

Adaptability to fashion trends:The retagging process allows partners to adapt to the ever-changing landscape of fashion trends. By promptly updating their inventory, partners can capitalize on new styles and preferences and remain competitive in the online fashion market.

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