Berlin-based fashion e-tailer Zalando has revealed it is to set up a standalone own-label fashion business to drive sales of its 17 brands to new target groups and markets.

The retailer confirmed to just-style that its zLabels unit will no longer design and manufacture exclusively for the e-commerce company, but will instead take over the distribution of its 17 fashion labels "autonomously and independently" from Zalando.

"The success of recent years has shown how much potential there is in zLabels brands and they want to further develop this potential," the spokesperson added. "Thanks to additional sales channels, zLabels will be able to reach new target groups and gain new markets. Zalando will of course continue to be the home base and closest partner."

Zalando currently sells 1,500 brands in 15 European markets, and was recently named in the top 30 European multichannel retailers.

H&M and Zara top European multichannel retailers

An article on just-style last year looked at how Zalando compares with its online competitors, and likely developments to capture future global growth.

Zalando - profit is so last season