What: Zalando has opened a new technology centre in Shenzhen, China, aiming to leverage regional expertise in social commerce, but has no plans to expand its retail presence in China.

Why it is important: By establishing a technology centercentre in China's high-tech hub, Zalando seeks to enhance its social commerce capabilities, which could strengthen its competitive edge in the European market. This move underscores the company's focus on growth in Europe, particularly in higher-priced and premium sportswear segments, rather than expanding into the Chinese retail market.

Zalando has opened a technology centre in Shenzhen, China, to gain insights into social commerce and apply them to its European operations. Despite this strategic investment, the company has no plans to expand its retail platform in China, remaining focused on its existing 50 million active customers across 25 European markets. With an emphasis on premium sportswear brands, which are growing in popularity in China, Zalando aims to differentiate itself from lower-cost competitors and continue its growth trajectory in Europe.

Zalando opens technology centre in China, focuses on European growth