Global Fashion Group (GFG) is an international online fashion and lifestyle retailer headquartered in Luxembourg. The company was founded in 2011 as a joint venture between Rocket Internet and Kinnevik. It serves as an umbrella organization for multiple regional e-commerce platforms specializing in fashion, including Zalora in Southeast Asia, Dafiti in Latin America, and The Iconic in Australia and New Zealand.
 | |
| Company type | Public (Société Anonyme) |
|---|---|
| FWB: GFG | |
| ISIN | LU2010095458 |
| Industry | E-commerce, fashion, retail |
| Founded | 2011[1][2] |
| Headquarters | |
Key people | Cynthia Gordon (Chair) Christoph Barchewitz (CEO) |
| Products | Clothing, shoes, accessories, beauty |
| Revenue | €1.36 Billion (2020) |
| Owners | Kinnevik AB (Lead)[3] Rocket Internet SE[4] Access Industries Summit Partners Ontario Teachers' Pension Plan Tengelmann Group Verlinvest[5] |
| Members | Dafiti, The Iconic, Zalora |
Number of employees | 9,000+ |
| Website | https://global-fashion-group.com |
GFG aims to bring fashion to emerging markets, leveraging an assortment of global and local brands and designers. It operates in over 20 countries and has become a significant player in the online fashion industry.
GFG is led by CEO Christoph Barchewitz.
History
editGlobal Fashion Group (GFG) was established in 2014 through a consolidation of fashion e-commerce regional companies backed by Kinnevik and Rocket Internet. Its regional companies Dafiti, Lamoda, The Iconic, Zalora and Jabong (later sold) were founded in 2011 and 2012.[6][7]
In 2011 and 2012, the GFG regional companies began operations with a business model of selling inventory to customers from its warehouses.
From 2013, the GFG regional companies started creating their own private-label brands, such as Lost Ink and Zalora (formerly Ezra).[8]
In April 2015, Romain Voog was appointed chief executive officer of GFG.[9] He retained the role for approximately 3 years.
In 2016, GFG rolled out its Marketplace platform across key markets to complement its traditional inventory-led model.[10]
In April 2017, GFG appointed Cynthia Gordon, a board member of Kinnevik, as the new chair of GFG Board of Directors.[11]
In February 2018, Patrick Schmidt and Christoph Barchewitz were appointed co-chief executive officers, succeeding Romain Voog.[12]
As of July 2019, it is now listed on the Frankfurt Stock Exchange (ticker symbol: GFG).[13]
Geographical operations and presence
editGFG is registered in Luxembourg, and headquartered in Singapore and London, UK. Through its four regional companies, GFG currently operates across 24 markets with a total population of more than 1 billion, serving a fashion market estimated to be worth over €350 billion.
Since their launch in 2011 and 2012, the five GFG regional companies have developed online fashion platforms in their respective markets.[7]
The Group operates more than 10 warehouses across the world, including The Iconic's 19,000sqm "fulfillment center" in Australia[14] and Zalora's Regional e-Fulfilment Hub in Malaysia.[15][16]
As of 31 December 2018, GFG has more than 11 million active customers and over 10,000 employees.[17][11]
International brands
editIn April 2017, Zalora established a partnership with Abercrombie & Fitch. This partnership will provide Abercrombie & Fitch access to more than 600 million of Zalora's online customers.[18]
Private labels
editFrom 2013, the GFG regional companies started creating their private label brands, with in-house design teams and collaboration with local designers.[19] GFG private label brands include Lost Ink, Zalora (formerly Ezra), Zalia, 24:01 and Something Borrowed.
Business figures
editIn April 2018, GFG reported net revenue of over €1 billion in 2017 (excluding Jabong and Namshi), with sales up 19.9% from 2016.
Still, on its path to profitability, GFG improved its adjusted EBITDA margin from (12.5)% in 2016 to (8.9%) in 2017. It credits this improvement with investments and efficiency gains in marketing and fulfillment.[20] Namshi was the first GFG regional company to achieve full-year profitability in 2016 with an adjusted EBITDA of €2.5 million.[20]
GFG ended 2017 with €257.3 million in cash on a pro forma basis.[20]
| Year | Net Revenue (EURm) | Revenue growth (%, FX neutral basis) | Adjusted EBITDA margin | Cash position (EURm) |
|---|---|---|---|---|
| 2014[10] | 627.5 | Undisclosed | (38.0)% | 223.8 |
| 2015[11][10] | 808.0 | 48.2% | (26.9)% | 76.7 |
| 2016[11] | 1023.1 (excl. Jabong) | 26.4% | (12.5)% | 255.0 |
| 2017 | 1095.0 (excl. Jabong & Namshi) | 19.9% | (8.9%) | 257.3 |
| 2018 | 1155.9 | 18.7% | (4.3%) | 178 end of Q1 2019 |
Fundraising and M&A
editFundraising
editIn 2015, GFG raised €150 million from existing investors Kinnevik and Rocket Internet in an internal financing round.[21][22]
GFG secured additional funding of €330 million from existing shareholders led by Kinnevik and Rocket Internet during H1 2016. The funding round resulted in a cash balance of €342.6 million at the end of H1 2016.[10]
Acquisitions
editIn 2015, GFG acquired sports and outdoor activities e-commerce company Kanui, and kids/ baby-focused online retailer Tricae. Both deals are undisclosed and the two Brazil-based businesses have been integrated into Dafiti.[21]
Strategic partnerships
editIn February 2017, GFG announced a strategic partnership with one of the Philippines’ oldest and largest conglomerates, the Ayala Group. Ayala invested to take a 49% ownership in Zalora Philippines.[11][23]
Divestments
editIn March 2016, GFG's South American business Dafiti sold its operations in Mexico.[24]
In April 2016, GFG's Southeast Asian business Zalora sold its operations in Thailand and Vietnam to retailer Central Group for an undisclosed amount.[10]
In August 2016, GFG sold its Indian business Jabong to Flipkart for US$70 million in cash.[10]
On December 13, 2022, GFG completed the sale of Lamoda's business in Russia, Kazakhstan and Belarus to Yakov Panchenko, owner of the Stockmann department store chain.[25]
References
edit- ^ Lunden, Ingrid (4 September 2014). "Rocket Internet Consolidates 5 Emerging Market Fashion Brands Into One: $3.5B GFG". Techcrunch. Retrieved 24 August 2017.
- ^ "Kinnevik and Rocket Internet to create global fashion e-commerce group". Kinnevik. Archived from the original on 9 April 2017. Retrieved 24 August 2017.
- ^ "Our Investments, Global Fashion Group". Kinnevik. Retrieved 24 August 2017.
- ^ Russell, Jon (22 July 2016). "Rocket Internet's GFG closes $365M down round as external investors shy away". Techcrunch. Retrieved 24 August 2017.
- ^ "GFG Digital & Ecommerce". Verlinvest. Retrieved 24 August 2017.
- ^ Lunden, Ingrid (4 September 2014). "Rocket Internet Consolidates 5 Emerging Market Fashion Brands Into One: $3.5B GFG | TechCrunch". Retrieved 2017-08-21.
- ^ a b "Kinnevik | Kinnevik and Rocket Internet to create global fashion e-commerce group". www.kinnevik.com. Archived from the original on 2017-04-09. Retrieved 2017-08-21.
- ^ "Tech in Asia - Connecting Asia's startup ecosystem". www.techinasia.com. Retrieved 2017-08-21.
- ^ "Global Fashion Group hires ex-Amazon.com exec as CEO". Reuters. April 8, 2015. Retrieved August 22, 2017.
- ^ a b c d e f "Archived copy" (PDF). Archived from the original (PDF) on 2017-08-21. Retrieved 2017-08-21.
{{cite web}}: CS1 maint: archived copy as title (link) - ^ a b c d e "Archived copy" (PDF). Archived from the original (PDF) on 2017-08-29. Retrieved 2017-08-21.
{{cite web}}: CS1 maint: archived copy as title (link) - ^ "GFG CEO Announcement" (PDF). Archived from the original (PDF) on 2018-01-31. Retrieved 2018-01-30.
- ^ Fish, 3 July 2019By Isabella (3 July 2019). "Global Fashion Group lists on Frankfurt Stock Exchange". Drapers. Retrieved 2019-07-05.
{{cite web}}: CS1 maint: numeric names: authors list (link) - ^ "The Iconic has moved to a new 19,000sqm fulfillment center - Internet Retailing". Internet Retailing. 2017-04-18. Retrieved 2017-08-21.
- ^ "Zalora invests US$4.2mil on the regional e-fulfillment hub in Malaysia". Digital News Asia. 2017-03-10. Retrieved 2017-08-21.
- ^ "A Rare Peek Inside the Zalora Warehouse | Preview.ph". Preview.ph. Retrieved 2017-08-21.
- ^ "Global Fashion Group - WE ARE BRINGING FASHION ONLINE – WORLDWIDE". global-fashion-group.com. Retrieved 2017-08-21.
- ^ "[4.11] E-commerce News You Should Know: Zalora to Stock Abercrombie & Fitch in Asia". ecommerceIQ - E-commerce in Southeast Asia, Reports, Data, Insights. 2017-04-11. Archived from the original on 2017-08-21. Retrieved 2017-08-21.
- ^ "Zalora supports Asian designers". Manila Standard. Archived from the original on 2017-08-21. Retrieved 2017-08-21.
- ^ a b c "Global Fashion Group posts improved 2016 revenue but still making losses". Tech.eu. Retrieved 2017-08-21.
- ^ a b Russell, Jon (July 2015). "Rocket Internet And Kinnevik Add $167M More To GFG, Roll In 2 Brazilian Fashion Portals | TechCrunch". Retrieved 2017-08-21.
- ^ "Zalora's owner raises €150m from existing investors AB Kinnevik, Rocket Internet - DealStreetAsia". www.dealstreetasia.com. Retrieved 2017-08-21.
- ^ "Archived copy" (PDF). Archived from the original (PDF) on 2017-08-21. Retrieved 2017-08-21.
{{cite web}}: CS1 maint: archived copy as title (link) - ^ Antúnez, Marco. "Inversionistas mexicanos adquieren Dafiti México | ebusinesshoy". ebusinesshoy.com. Archived from the original on 2017-08-21. Retrieved 2017-08-21.
- ^ "Global Fashion Group completes sale of Lamoda business in Russia". tass.com. 2022-12-13.