Home / Knowledge / News / Retail / Japan's fashion retailer Zozo pulls out of markets abroad

Japan's fashion retailer Zozo pulls out of markets abroad

03
May '19
Pic: Zozo
Pic: Zozo
Japanese online fashion retailer Zozo recently decided to withdraw from international markets a year after unveiling a plan to sell its customised apparel in over 70 markets. While announcing its annual earnings for the year ended March 2019, the company said it will book a nearly $17.8-million loss as an impairment charge for its US and German subsidiaries.

Founder and chief executive officer Yusaku Maezawa, who has claimed a year ago that the company intended to become ‘a top 10 apparel company’ with a valuation of 5 trillion yen, admitted that the company bit off more than it could chew.

Zozo's free polka-dot bodysuits provided to customers allow body measurements to be uploaded to the company, after which consumers can order the brand's custom-fit clothes online without the need for fittings.

The group announced that 1.6 billion yen in extraordinary losses from its overseas business and problems with its private label division had helped push net profit down by 20.7 per cent to 15.9 billion yen—its first-ever drop in annual profit. This came despite a 20.3 per cent rise in revenue to 118.4 billion yen, according to global news wires.

Meanwhile, Zozo is planning to launch an online retail operation in China in November to sell other Japanese brands. The company had entered the market in 2011 but eventually withdrew.

In Japan too, Zozo will scale down its private label business, Maezawa said. The company will instead collaborate with other brands to create up to 50 sizes. Beams and Levi's are among the brands Zozo is working with.

Analysts are optimistic about growth at Zozotown's online marketplace, which accounts for 97% of the company's transaction value.

The company is also planning to be more aggressive in pushing its Zozo credit card by offering more loyalty points when items are purchased at Zozotown. (DS)

Fibre2Fashion News Desk – India


Must ReadView All

Pic: Shutterstock

Textiles | On 19th Apr 2021

NCTO seeks approval for collection of China 301 duties

The National Council of Textile Organizations (NCTO) of the US has...

Pic: Dong Nhat Huy / Shutterstock.com

Apparel/Garments | On 19th Apr 2021

Vietnam's export sectors become M&A targets for foreigners

Vietnam's textiles-garment and leather-footwear sectors are facing a...

Pic: Canada Goose

Apparel/Garments | On 19th Apr 2021

Canada Goose commits to transitioning 90% materials to PFMs by 2025

Luxury apparel maker Canada Goose is committed to transitioning 90...

Interviews View All

Textile Industry, Head honchos

Textile Industry
Head honchos

Fashion tech has to be lean and very productive

Textile Industry, Head honchos

Textile Industry
Head honchos

Verticals like fast fashion won’t completely adopt personalisation on...

Textile Industry, Head honchos

Textile Industry
Head honchos

Marry craft and utility

Gus Bartholomew,

Gus Bartholomew

<b>Gus Bartholomew</b>, co-founder of SupplyCompass, explains to <b>Subir...

Seema Mishra,

Seema Mishra

Set up in January 2020 by <b>Seema Mishra</b>, the Kasrawad Art Cluster...

Chendhuran Sundar,

Chendhuran Sundar

It manufactures and retails menswear garments in India under the brand...

Madison Maxey, Loomia

Madison Maxey
Loomia

Loomia designs and manufactures soft circuit systems that can be produced...

Sameer Sonkusale & Rachel Owyeung, Tufts University

Sameer Sonkusale & Rachel Owyeung
Tufts University

A team at the Tufts University in Massachusetts was recently in news for...

Jacques Prigneaux, EDANA

Jacques Prigneaux
EDANA

EDANA has been the leading global association and voice of the nonwovens...

Ramya Rao & Kavea R Chavali, Kalaneca

Ramya Rao & Kavea R Chavali
Kalaneca

<div>The journey of Kalaneca (kala-Art, Neca- Nikaah) formally began in...

Niti Singhal, Twee In One

Niti Singhal
Twee In One

Best known for convertible clothing, Indian brand Twee In One by designer...

Sneha Arora, Label Sneha Arora

Sneha Arora
Label Sneha Arora

Sneha Arora, an alumnus of National Institute of Fashion Technology,...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

Leave your Comments


April 2021

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.


Advanced Search