Zalando has acquired Highsnobiety

When the streetwear blog Highsnobiety was founded by David Fischer in 2005, many decided to invest in its editorial line. And now Zalando, the German fashion e-tailer with more than 10 trillion annual sales, has bought a majority stake in the well-known street culture platform. Highsnobiety's founder and CEO will retain a minority stake in the company and continue as a separate entity along with co-CEO Jürgen Hopfgartner. While both Zalando and Highsnobiety are based in Berlin, there will be no amalgamation of offices.

Highsnobiety will contribute only a small part of Zalando's revenue: the company is expected to generate more than $60 million in 2022, with 60 percent of revenue coming from Europe. But its ability to attract an audience and a community of readers could prove invaluable to Zalando. Highsnobiety's relationships with sought-after brands, both luxury and streetwear, could also prove valuable to Zalando. In 2019, for example, Highsnobiety had launched an e-commerce initiative with an exclusive deal to sell coveted Prada products. "Fashion is much more than a product; it's about culture and all the stories behind the product," said David Schneider. And "customers want more immersive experiences," continued Schneider, co-CEO of Zalando. Although the publishing arm still accounts for most of Highsnobiety's revenue, its commercial business is growing, with a "double-digit percentage" of overall sales, and could benefit from Zalando's technology and distribution capabilities for further scale. For its part, Highsnobiety, with 35 million users on its platforms, could help Zalando acquire and engage new customers.