Lyst to be acquired by Japan’s ZOZO as both firms view global growth

Fashion platform Lyst has announced that it will be acquired by Japan’s ZOZO, “transforming the future of fashion discovery through AI and technology”.

It said they have a “shared vision to transform [the] online fashion shopping experience for shoppers and brands” and that their “complementary footprints and tech capabilities” will be able to “unlock new growth and market expansion opportunities”.

Lyst as we know it won’t disappear. It will continue to operate as a standalone brand within ZOZO Group.

The definitive agreement will see the London-headquartered business acquired for $154 million by the end of this month and becoming a wholly owned subsidiary of the Japanese firm. 

Lyst is a major global fashion shopping platform that connects 160 million shoppers annually with “27,000 of the world’s best premium and luxury brands and retailers through a powerful, asset-light model”.

It has one of the largest data sets in fashion (even those who don’t use it may be familiar with the quarterly Lyst Index of the most in-demand luxury labels and products). It “fuses artificial intelligence with fashion intelligence to create new and immersive ways for shoppers to discover fashion” through its app and website. 

Meanwhile ZOZO operates there ZOZOTOWN Japanese e-commerce platform serving 12 million customers annually, “and providing innovative shopping experiences through its proprietary measurement technologies”. It also develops and operates services including ZOZOFIT, a 3D body scan technology available in the US, plus outfit-sharing app WEAR by ZOZO and more.

It said the Lyst buy will “form the cornerstone” of its international expansion strategy “as the group further expands its global position”. 

It’s drawn by Lyst’s “strong footprint across the US, UK and Europe” that’s “complementary to [our own] leading market position in Japan, providing pathways for both companies to expand into new markets”.

ZOZO also said it will “fully support” Lyst’s growth strategy and will “invest in accelerating the development of Lyst’s cutting-edge AI-driven discovery experience”.

Another benefit is said to be the new owner’s “expertise in lowering barriers to online fashion sales through innovative sizing and fit solutions, helping shoppers to make better choices and reduce returns”.

CEO Emma McFerran said: “This is an exciting moment for Lyst, and a win-win for our fashion ecosystem of shoppers and partners. Our space is evolving fast, and we share a vision to build a better, brighter future for the industry, using AI and technology. With ZOZO’s scale, expertise and support, Lyst will be in an even stronger position to reimagine fashion discovery online.

And ZOZO executive director Utahiro Inui added: “Lyst has built an exceptional platform that aligns perfectly with our vision of creating more inspiring, joyful shopping experiences. Lyst’s industry credibility and unique brand voice, coupled with market-leading technology and scale, means they are uniquely positioned to redefine the space.”