We are excited by the potential for a large proportion of fashion spending to move online in Europe over the next decade. Zalando should be well placed to capitalise on this, given the company’s significant brand recognition, technological lead, and scale advantages. We also believe that having a founder management team with a long-term focus is a critical strength. While some digital businesses accelerated by the pandemic may seem closer to maturity, we don’t think this is the case for Zalando.

We continue to believe that the company will drive and benefit from growth in online fashion spending. Its investments in logistics and building out the Partnership Program, as well as recycling and sustainability initiatives, leave Zalando in a good position to capitalise on this opportunity.

Founders Robert Gentz and David Schneider own around 60 per cent of the company meaning their interests align with ours. Alignment is strengthened by Cristina Stenbeck’s position as Chair. She is best known for previously being the Chair of Zalando’s former largest investor Kinnevik, which was set up to manage the Stenbeck family’s interests, and is a Scottish Mortgage holding.

in September 2014.