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Breaking: Beyond Headlines!

We Increase Zozo’s Fair Value Estimate on Improved Margin Outlook
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We Increase Zozo’s Fair Value Estimate on Improved Margin Outlook

Zozotown by Zozo is the largest pure-play fashion e-commerce platform in Japan, with over 9,000 brands and 11.7 million active users on the platform, both of which are the largest in Japan. Zozotown charges a high average acceptance rate of 30%, due to the high value it offers to tenants, through 1) access to the largest pool of young, fashion-conscious customers in Japan, and 2) fulfillment services tailored to fashion brands, which include sizing, photographing, storing, selecting and packaging products, shipping and returning. By collecting vast amounts of user traffic data over the past two decades, Zozo’s site algorithm generates highly sophisticated personalized recommendations, which result in 14-16% higher conversion rates compared to to the industry average of 4%.