About You’s growth prospects are in the bag
The specialist was bullish on the company’s prospects, expecting 30-50% growth over the next three years. Internationalisation, a boost from COVID-19 and About You’s tech-oriented business model were cited as reasons. The specialist also commented on revenue from the DACH (Germany, Austria and Switzerland) region and its growth outlook.
In tandem with targeting both younger and older users, About You “is really focusing on the great user experience on the smartphone that resembles much more the usage of a magazine.” They added it’s about customers looking for inspiration, with the company looking to become “more [of] a media brand”.
Looking into markets with the most potential, the specialist highlighted Eastern Europe – “where they jumped to the number one position in some of those markets very, very early on”. Not only was this region overlooked by the competition, but About You prepared for market entry “carefully”.
Zalando, which is active in 20 European countries, is one of the main competitors. “The Zalando model and the About You model are similar in some ways. Actually, it has to be said that Zalando was founded as a better Amazon.” Although Amazon “is the big gorilla overall”, its main focus isn’t fashion. However, it could pose a problem for clothing basics: “There they are a big threat for everyone who is focusing on that area. If the area is about exploring, getting ideas and jumping on trends, that’s a different ball game.”
Other areas focused on in the Interview include About You’s TME segment, 360 e-commerce service and third-party selling.
To access all the human insights from Third Bridge Forum’s Otto Group’s About You – IPO analysis Interview, click here to view the full transcript.
The information used in compiling this document has been obtained by Third Bridge from experts participating in Forum Interviews. Third Bridge does not warrant the accuracy of the information and has not independently verified it. It should not be regarded as a trade recommendation or form the basis of any investment decision.
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