What is happening: Zozo, a once promising online fashion retail site, looks to be hit with losses of over $100 million this fiscal year. Big brands have already started to withdraw from the online platform.
Promise: Yusaku Maezawa launched the brand to sell various fashion brands online, however, the ambition seems to have backfired, with the company facing major losses.
Competition: The likes of Amazon and other retail giants have the potential to sweep startup businesses away effortlessly, no matter how initially positive they seem. The losses from Zozo also highlight how difficult it is to crack consumer markets.
Zozosuit: The Zozosuit product was designed to offer up better measurements for custom-fitted clothing, however, it proved to be too expensive to sustain.
Future: Zozo now look to start up a membership program with discounts for those involved.