The giant e-tailer based in Berlin has signed a letter of intent to buy the insolvent company that manages the Bread & Butter fashion show in the German capital. The fair is working on a new concept that should involve consumers, which are Zalando's primary target, but it's not sure how this would work out.
Industry managers were quite surprised by the news of the takeover. Their initial reactions have been mixed. Some felt that Zalando and the fashion and footwear sector at large could gain from the organization of a big and highly publicized festival for the general public in the German capital, but doubted that it would bring any immediate business, as has been the case for Bread & Butter itself from the very beginning.
In the absence of any details about Zalando's plans, they wondered whether the brands would show their future collections to the consumers and whether consumers would want to buy them in advance of the season.
Many former exhibitors had rejected an earlier proposal to open up the fair to the general public. Some said that they could probably gain from Zalando's financial power and its marketing know-how.
Others indicated that they are not interested in participating after the abrupt cancellation of last January's show. They have already migrated to other trade-only shows in Berlin.
For a show like B&B, the combination with an e-tailer could help it to address its clients and their customers with an all-year-round strategy that is being pursued by the Ispo sporting goods show in Munich through a variety of services including the provision of news. For Zalando, it may be a way to promote its own marketplace among its suppliers.
Zalando said it was making the investment for the good of Berlin as a fashion venue. The takeover should be completed around the end of September, which means that it will not affect the regular summer session of B&B, scheduled for July 7-9. With only 120 exhibitors, the trade show will be relatively small.
Apparently, it will continue to work with Karl-Heinz Müller, B&B's controversial founder and guru, but it is not taking over his two 4oz stores in Berlin, which are still the property of B&B. On the other hand, B&B's long-term contract with the City of Berlin for the use of the Tempelhof airport, which expires in 2019, is part of the package.
