Fast Fashion Brands Are Too Expensive. How Can Primark Succeed In Counterattack?

In China, it is difficult to win the market by relying solely on price tactics, because more and more brands cannot be ignored. They have already taken the lead in the middle market, and need to find a balance between price, design and quality.

Why can Primark be so cheap?

This is an Irish company. They feel that ZARA's fast fashion brand is still too expensive.

Primark, which was born in 1969 in Dublin, Ireland, has a long history, but it is not a classic high-end brand.

On the contrary, its goods are very cheap.

You can get 5 pounds of ballet shoes, 4 pounds of bikini, 3 pounds of sunglasses, 6 pounds of legging at Primark stores, and they are all full price new ones.

In addition to men's and women's wear and children's wear, there are about 15 pounds of household products that can be arranged.

A few days ago, Primark issued a statement saying it wanted to enter the United States officially this year.

The first store will be opened in Boston, USA in September.

Before that, Primark has been mixed up in the "European" market, and it is said that it is the European market, but in fact it is mainly in Ireland and Britain.

Ten years ago, shop expansion began slowly, and stores were opened in Spain, Holland, Portugal, Germany, Belgium, Austria and France.

At present, the total number of stores exceeds 250, and Ireland and Britain occupy 199 of them.

"As long as it's weekend, when you walk into any Primark, there are at least 70 people waiting in line."

Racked said so.

As early as the second half of last year, a large number of media reported that Primark had defeated ZARA in Spain.

According to financial data, ZARA's annual sales in 2013 amounted to 167.24 billion euros, 6200 around the world, 1858 in Spain, accounting for about 30%, but sales were only 20% of total revenue, while Primark achieved a total revenue of 42.73 billion (equivalent to 5 billion 860 million euros), with only about 250 stores and only 40 in Spain.

Obviously, Primark and fast fashion brands are nearly 400 a year, and the main advantage is in the price war.

In the economic downturn, consumers are more inclined to lower the budget on clothing.

So far, Primark has no online shopping service. Although the official website will update the price of lookbook and its single products, the purchase can only be carried out in physical stores.

In 2013, the brand was in

The agent sells 20 pieces of goods to test the water on the Internet shopping.

But after 12 weeks, the project was stopped.

It's not because it can't be sold, it is.

Too vigorous, leading to pport costs greater than commodity profits.

"The profit margins of our single commodity are very small, which is why even online retailers can't compete with us."

George Weston, CEO of Primark parent company ABF (Associated British Foods), said.

Besides,

Without any form of marketing activity, the large order quantity can get the lowest price of suppliers, narrow the distance between fabric suppliers and processing plants, and use skilled workers and mechanical assembly lines to minimize operating costs.

Look at the brand website. There is a column in the top menu called "our morality".

It seems that the brand attaches great importance to the previous frequent negative news (part of the false news) and opens up a special page that explains why they are cheap because they are not using child workers, using super low pay workers' wages, and clearly listing the detailed location of the factory, and a series of social responsibility activities on environmental protection and children.