Fabio Baum
Nordic Director at Zalando

What do you see as the biggest challenges – and opportunities – for the fashion industry in 2025?

I believe 2025 will remain a dynamic period for the fashion industry, where we must navigate challenges such as economic uncertainty and constantly shifting consumer expectations. Despite these changes, I am confident the industry will continue to demonstrate its resilience and ingenuity. We have seen how fashion brands adapt and find creative ways to build relationships with customers. Fashion remains not only relevant but also inspiring in times of change, showcasing the agility and vision required to thrive.

The opportunities lie in embracing technology to create personalized and seamless shopping experiences – and leveraging artificial intelligence to make discovering fashion more inspiring and entertaining. A significant milestone for us last fall was the launch of our adaptive sportswear and children’s clothing collections. By expanding our adaptive range with functional and stylish solutions for both sports enthusiasts and children with disabilities, we took an important step in our ongoing efforts to promote inclusion.

Looking ahead to 2025, we are determined to build on this progress. Developing products that meet the diverse needs of our customers will remain a priority. The positive feedback we’ve received from end-users underscores the importance of these initiatives – not only for our customers but also for the growth and values of our business.

 

Which themes do you think will define 2025?

For us at Zalando, quality will continue to be a crucial theme in 2025. Quality is an essential differentiating factor in an increasingly competitive and complex market where customers seek brands they can trust. Several dimensions of quality will shape the industry:

  • The assortment: Offering a curated selection of high-quality and relevant brands will put us in a strong position. I must admit I’m a bit biased from working closely with the Danish market, but I want to highlight the incredibly creative Danish designers who contribute to this. Danish fashion has particularly excelled in the current streetwear trend, blending urban aesthetics with the clean lines and functionality that Danish design is known for. This unique approach to streetwear resonates strongly with our younger audience across Europe.
  • The digital experience: Innovations that solve real customer problems, such as better solutions for size and fit, are key to building trust and improving user-friendliness in e-commerce. For instance, last fall, we tested a virtual fitting room that allows customers to create 3D avatars using their own body measurements. The technology provides a realistic visualization of how a product fits and helps customers find the right size on the first try – and the size that matches the style they want to wear. This initiative demonstrates our commitment to using technology to improve the shopping experience, reduce returns, and ensure customer satisfaction.
  • Inclusion: Providing options for all customers, regardless of their individual needs, is a priority for us. I am particularly proud of our expansion of the adaptive range to include sportswear and children’s clothing last year.

 

What measures do you see as most critical for succeeding in 2025?

In 2025, we are focusing on three areas to effectively execute our strategy.

  • Differentiation through quality: Many customers already prioritize quality over price. For Zalando, it’s about continuing to offer a high-quality assortment and making these choices easily accessible to customers, building trust and loyalty.
  • Personalized inspiration and entertainment: This will be a significant driver of customer engagement at Zalando. With more consumers, especially Generation Z, seeking inspiration online, we are constantly working to improve our digital experience with features like Trend Spotter, which helps customers discover the latest fashion trends, and our AI-driven Zalando Assistant, a virtual shopping assistant providing personalized product recommendations. Both features deliver engaging, personalized content to customers. These innovations add value beyond mere transactions by entertaining and inspiring customers and fostering deeper relationships.
  • Expanding categories: We aim to meet even more of our customers’ needs by growing categories such as beauty, designer fashion, children’s wear, and sportswear to address evolving preferences. The sports category, in particular, is exciting as it includes everything from technically advanced workout gear to stylish casualwear that can be worn outside the gym. In sports, we focus on improving our selection of products that are practical and suitable for physical activity to meet growing demand. The goal is to cement Zalando’s position as a leading destination where customers can find both fashion and functionality in one unified platform.