Business Model

ZOZO Group mainly develops ZOZOTOWN business which operates the fashion e-commerce site “ZOZOTOWN”. In addition, we also operate a fashion media “WEAR” to revitalize the entire fashion industry.

1. ZOZOTOWN Business

ZOZOTOWN business consists of 3 business forms: Outright Purchase/Production & Sales, Consignment Sales and USED Sales.

Outright Purchase/Production & Sales is a business form where we purchase products from multiple brands and sell those products at shops operated by the company. As of March 2021, there are 18 shops on ZOZOTOWN. Product price settled on ZOZOTOWN directly becomes net sales.

Consignment Sales is a business form where each brand’s products are stocked in our logistics bases as consigned inventory, and brands open their shops on ZOZOTOWN as tenant form. As of March 2021, there are 1,450 shops on ZOZOTOWN. Of product price settled on ZOZOTOWN, consignment sales commission from each brand will be recorded as net sales.

USED Sales is a business form where we purchase second-hand fashion goods from individual users and others as its own inventory, sell products at the shop on ZOZOTOWN. It is positioned as a value-added service to promote the purchase of brand-new products.

* There are adjustments such as a reduction due to the adoption of the accounting standards for revenue recognition.

2. PayPay Mall

We opened ZOZOTOWN shop on PayPay Mall an online shopping mall operated by Yahoo Japan Corporation. Of product prices settled on ZOZOTOWN shop in PayPay Mall, the amount equivalent to the consignment sales commission paid from each store to us out will be recorded as net sales.

3. BtoB Business

BtoB is a business form where we are entrusted various fulfillment related services of brands for their own e-commerce sites operation. As of March 2021, the company supports 53 companies’ own e-commerce site operations. Of product prices settled on own e-commerce sites, certain amount of commission from each brand will be recorded as net sales.

4. Advertisement Business

Advertisement business is a business form where we gain advertisement income from client companies including brands by providing advertisement spots utilizing the user base of ZOZOTOWN and WEAR. As for WEAR, we continue to focus on expanding the number of users and contents, and as of the end of March 2021, the number of app downloads exceeded 15 million. The number of monthly users is growing steadily as well.