How ZALORA Built an ASEAN E commerce Platform from Scratch

Why It Matters
ASEAN is one of the world’s most complex digital markets, yet few platform success stories are told from this region. This case shows how ZALORA navigated fragmentation, weak infrastructure and sceptical brands to build a viable e‑commerce platform.

Key Takeaways

• ZALORA used a demand‑first strategy to overcome early platform adoption barriers.
• It later pivoted from online retail to e‑commerce enablement by monetising its logistics and market expertise.
• Leadership decisions will shape how the firm balances growth, profitability and disruption in an uncertain global fashion market.

Building Demand Before Building a Platform
When ZALORA entered Southeast Asia in 2012, it faced a classic platform dilemma. To attract fashion brands, it needed consumers. But to attract consumers, it needed brands. This “chicken‑and‑egg” problem was made harder by the region’s fragmented markets, uneven logistics and low trust in online retail.

Rather than waiting for major brands to sign on, ZALORA chose a demand‑first approach. It launched white‑label fashion products under its own brand to drive traffic, build consumer trust and establish its online presence. This strategy allowed ZALORA to control supply, learn local demand patterns and create early momentum on its platform.

As customer traffic grew, ZALORA’s value proposition became clearer to external brands. Well‑known international labels such as Topshop and Mango began to join the platform, reassured by its growing audience and operational capabilities. ZALORA also expanded into new categories, including shoes, accessories, children’s wear and beauty, strengthening its position as a regional fashion destination.

Scaling Across a Fragmented ASEAN Market
Unlike single‑market platforms, ZALORA had to operate across multiple countries with different regulations, languages, consumer preferences and logistical constraints. What worked in one market could not simply be replicated in another.

To manage this complexity, ZALORA invested heavily in its own logistics and fulfilment infrastructure. This allowed the company to offer faster deliveries, smoother returns and more reliable service across the region. Over time, these operational capabilities became a competitive advantage, not just a cost centre.

By embedding local knowledge into a regional operating model, ZALORA learned how to balance standardisation with flexibility. It centralised technology and data while tailoring marketing, assortment and partnerships to individual markets. This approach helped the company compete against global players while remaining sensitive to local realities.

From Retailer to E‑commerce Enabler
A major strategic shift came in 2019, when Gunjan Soni, a former McKinsey partner, joined as CEO. By this point, ZALORA had built deep expertise in logistics, digital marketing and cross‑border e‑commerce. Rather than relying solely on retail margins, the company began to monetise these capabilities.

ZALORA repositioned itself as an e‑commerce enabler, offering end‑to‑end solutions for global fashion brands looking to enter or expand within ASEAN. These services included logistics, fulfilment, digital storefronts, customer data and market insights. For brands unfamiliar with the region, ZALORA provided a turnkey route to market.

This pivot allowed ZALORA to unlock new revenue streams while reducing its dependence on inventory‑heavy retail operations. It also deepened relationships with brand partners, shifting the firm’s role from seller to strategic platform partner.

Business Implications
ZALORA’s journey offers practical lessons for leaders navigating platform strategies in emerging and heterogeneous markets. First, platform growth does not always start with supply. Building demand early can create the credibility needed to attract partners later.

Second, investments in operations and infrastructure can become strategic assets. What begins as a necessary cost may later enable entirely new business models. Finally, successful platforms must remain adaptable. Leadership teams need to balance growth ambitions with profitability, sustainability pressures, technological disruption and geopolitical uncertainty.

For executives and entrepreneurs, the case highlights the importance of sequencing strategy, understanding local complexity and recognising when to pivot from execution to enablement.

Authors & Sources
Authors: Ivy Kwan (Nanyang Technological University) and Linny Ng (Singapore Management University).
Original case and sources:

• Harvard Business Impact, Case NTU391
• Ivey Publishing, Case AB25006
• The Case Centre, Case 325‑0312‑1

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