Global Fashion Group
|Cynthia Gordon (Chair)|
Patrick Schmidt (Co-CEO)
Christoph Barchewitz (Co-CEO)
Matthew Price (CFO)
|Products||Clothing, shoes, accessories, beauty|
|Revenue||€1.16 Billion (2018)|
|Owners||Kinnevik AB (Lead)|
Rocket Internet SE
Ontario Teachers' Pension Plan
|Members||Dafiti, lamoda, THE ICONIC, Zalora|
Number of employees
GFG is currently led by co-CEOs, Patrick Schmidt and Christoph Barchewitz.
Schmidt, formerly CEO of THE ICONIC is based in Kuala Lumpur. Barchewitz, formerly from Kinnevik AB, which is GFG's lead investor, is based in London.
Global Fashion Group (GFG) was established in 2014 through a consolidation of fashion e-commerce regional companies in emerging markets backed by Kinnevik and Rocket Internet. Its regional companies Dafiti, lamoda, THE ICONIC, ZALORA and Jabong (later sold) were founded in 2011 and 2012.
In 2011 and 2012, the GFG regional companies began operations with a business model of selling inventory to customers from its own warehouses.
In April 2015, Romain Voog was appointed chief executive officer of GFG. 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.
In February 2018, Patrick Schmidt and Christoph Barchewitz were appointed co-chief executive officers, succeeding Romain Voog.
As of July 2019, it is now listed on the Frankfurt Stock Exchange (ticker symbol: GFG).
Geographical operations and presence
GFG is registered in Luxembourg, and headquartered in Singapore and London. 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.
From 2013, the GFG regional companies started creating their own private label brands, with in-house design teams and collaboration with local designers. GFG private label brands include Lost Ink, ZALORA (formerly EZRA), ZALIA, 24:01 and Something Borrowed.
In 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 fulfilment. Namshi was the first GFG regional company to achieve full-year profitability in 2016 with an adjusted EBITDA of €2.5 million.
GFG ended 2017 with €257.3 million in cash on a pro-forma basis.
|Year||Net Revenue (EURm)||Revenue growth (%, FX neutral basis)||Adjusted EBITDA margin||Cash position (EURm)|
|2016||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
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.
In 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.
In 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.
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