Omnichannel model for Zalora Thailand
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Former Rocket Internet subsidiary Zalora Thailand is to morph into an omnichannel retail business under its new owner Central Group.
Zalora Thailand CEO Ali Fancy said in an interview with eThailand the online store plans to become Thailand’s largest fashion retailer after its merger with Central Group subsidiary COL, a process expected to take about six months.
By matching Zalora’s online expertise with Central’s broad-ranging brick and mortar and mall experience, the company expects to form a fashion-focused online destination with an offline offer, appealing to all type of shoppers..
Fancy says the merged company will continue to use the Zalora website and brand.
Under Rocket Internet ownership, the Zalora businesses in Thailand and Vietnam (which Central has also bought) failed to make money. However Central Group believes its 69 year history in Thai retailing and its huge infrastructure will enable Zalora to scale into a profitable business.
Central Group boasts 4400 stores and malls across many categories and a One Card loyalty program of more than 10 million members.
Zalora brings to the new partnership a strong social media presence and marketing program, with 1.6 million followers on Facebook alone.
Questions & Answers
Q.What is the new operational model for Zalora Thailand under Central Group ownership?
What is the new operational model for Zalora Thailand under Central Group ownership?
Zalora Thailand is transitioning into an omnichannel retail business. This model combines Zalora's online expertise with Central Group's extensive brick-and-mortar stores and mall experience to create a fashion-focused online and offline offering.
Q.What is the expected timeline for the merger process between Zalora Thailand and Central Group's subsidiary COL?
What is the expected timeline for the merger process between Zalora Thailand and Central Group's subsidiary COL?
The merger process between Zalora Thailand and Central Group subsidiary COL is anticipated to take approximately six months. This will integrate Zalora's operations into the broader Central Group structure.
Q.Why does Central Group believe it can make Zalora a profitable business, given its previous lack of success?
Why does Central Group believe it can make Zalora a profitable business, given its previous lack of success?
Central Group believes its 69-year history in Thai retailing and substantial infrastructure will enable Zalora to become profitable. This includes its 4400 stores and malls, alongside a loyalty program with over 10 million members.