Primark is revolutionising fast fashion.
The Irish teen retailer arrived in the United States this year.
The retailer is known for its staggeringly cheap prices — some shirts are just $1.60!
And now, Bloomberg Businessweek’s Matthew Campbell reports, the fast fashion chain is continuing its expansion in the United States, bringing dirt cheap clothing to the masses. In the continual limbo contest of fast fashion prices, Primark arguably wins.
But can it win in America?
Possibly. Campbell has outlined a few core components to Primark’s business model that may prime it for success in the United States.
1. It sells a lot of cheap clothes.
“We buy clothes from the same factories that everyone else buys from,” Geroge Weston, CEO of Primark’s Parent Company, Associated British Foods, said to Bloomberg. “Everyone.”
While cheap clothes may seem like a deterrent to more discerning consumers, young people don’t necessarily care. Goldman Sachs analysts informed Buzzfeed that consumers just want their clothes to be super cheap.
2. The store has nailed managing its inventory.
Bloomberg reports that merchandise sells rapidly — therefore, the company doesn’t need to hold onto inventory. “Because items sell so fast, deliveries often go straight onto the floor, meaning stores have relatively small stockrooms and more square footage for selling,” Campbell writes.
This could also translate to its lower prices.
This fall, a Primark spokesperson told Buzzfeed that its “prices are low because Primark operates differently than other retailers, reducing its costs by working smart and lean … In turn this saving is passed on to its customers.”
3. Primark has excellent relationships with its suppliers.
An anonymous executive told Bloomberg that Primark has better rapports with suppliers than other fast fashion companies do.
4. It has mastered Instagram.
“The store is a finely tuned machine designed to encourage Instagramming,” Campbell writes, citing that stores come equipped with Wi-Fi and that mirrors display the hashtag #Primania.
It’s no secret that mastering Instagram is crucial to being a relevant apparel company. In fact, that’s partially why Zara is currently ruling the fast fashion sector.