German online fashion platform Zalando and Danish fashion retailer Bestseller United have entered into a joint venture agreement for co-owning FashionTrade.com, a B2B online fashion wholesale marketplace. Bestseller was the sole owner, but Zalando now enters into the joint venture with a capital increase at FashionTrade.
With Zalando’s capital injection, FashionTrade can accelerate its growth. “Digitizing the wholesale experience and connecting brands and retailers in a simple online solution holds a great potential for the future of B2B fashion”, Bestseller-owner Anders Holch Povlsen says. “That’s why we are pleased to welcome Zalando and their expertise into this partnership that we expect will bring beneficial insights to brands and retailers alike.”
Digitizing the fashion wholesale industry
FashionTrade was founded in 2015 by Bestseller. By using digital innovation and optimization it wants to further digitize the fashion wholesale industry. The company offers a global online marketplace where brands and retailers can connect and trade their business.
Zalando now owns half of the company, but FashionTrade is said to be running its business just like they’ve always done. The platform is live since two months and until now about 40 brands have connected to the platform. In the near future about 200 other brands will follow.