German group to invest 20-M euros in Zalora

MANILA, Philippines - German retail giant Tengelmann Group has invested 20 million euros in online fashion and beauty retailer Zalora to help it improve its business operations and cement its position in the industry.

“Tengelmann has invested 20 million euros and this investment will be made to better our operations, customer service, etc.,” Zalora Philippines corporate communications Sabina Lopez said in a text message yesterday.

Among the key initiatives in line with improving its operations that will be funded by the investment is the building of a software development center in Singapore.

“This is so we have full control over the IT (information technology) operations of our web shop, our applications, mobile sites, etc.,” she said further.

The investment from the Tengelmann Group was made as Zalora has shown its potential as an online retailer across Southeast Asia, Hong Kong and Taiwan.

“We are confident that this is a synergistic and promising partnership given both our strengths in retail and the tremendous potential of the e-commerce market in Asia. Zalora’s success in the market, growth trajectory, management team and investor base speak volumes about how the company is fast becoming the undisputed leader for online fashion and beauty retail in many countries,” Tengelmann Group chief executive officer Christian Winter said.

For his part, Zalora Philippines managing director Paulo Campos said the partnership with the Tengelmann group would likewise help the online retailer grow.

“Tengelmann’s long and successful experience in retailing and specifically e-commerce will prove useful for Zalora as we cement our position as an e-commerce industry leader in fashion and beauty retail,” he said.

The 145-year-old Tengelmann Group which is a household name in the European retail industry, operates over 4,000 stores in 15 different countries and employs more than 80,000 people.

Founded in early 2012, Zalora offers an extensive selection  of apparel, shoes, accessories and other beauty products.

Apart from the Philippines, it  has presence in Singapore, Indonesia, Malaysia, Thailand, Vietnam, Hong Kong and Taiwan.