Since Primark's beginnings in 1973, the Irish budget fashion retailer had plans to conquer Europe. The opening of its first store in Marseille last December attracted more than 1000 visitors on day one. This success mainly comes from its positioning as a low-priced fashion retailer, according to an analysis by Kantar Worldpanel, released at its Fashion Morning conference.
With an average item price of 4.5 euros — and a shopping cart total two times lower than its main competitors in Europe — plus cutting-edge fashion collections, Primark has figured out how to become one of the favorite brands of consumers under 35.
But Primark's cheap prices are not the only thing behind the success of the brand owned by the Associated British Foods group. Its ability to refresh its image in each of its European markets is also contributes to its growth.
In England, Primark is seen as a discounter. But the Spanish view it as a major chain store. And in Portugal, the retailer is considered a fashion expert. So far this tactic has enabled the budget fashion giant to multiply its store openings without saturating its market for consumers.
Moreover, the chain's steady growth is also because its customers in Spain and Portugal are buying twice as many items than at Primark's main competitors. In England, they buy "only" one more item than the amount of their normal average shopping cart but the approach is the same: consumers make the most of a trip to Primark because its stores are rarely in the city center. The deep-cut prices encourage them to consume more.
In terms of advertising and communication, Primark shines for its talent to create a buzz with few resources. Targeting young consumers, the Irish retailer essentially relies on social networks to get out the word, such as with contests and store opening announcements. It has managed to create a real community, without very few costs.
If in fact Primark's success story seems flawless, it could have its limitations, says Kantar Worldpanel. In this digital era, Primark still does not have an online store, an amazing strategy, given that all major retailers are opening up to the real growth driver of cross-channel sales.
Another problem might come with a rebound of the Spanish and Portuguese economies and its consumers possibly losing interest in products at discount prices. Also the chain's target market of under-35 is shrinking in France and might not be as dynamic as initially forecast.
Currently Primark's store network now boasts 268 stores with some 891,000 square meters of retail space. Last September the chain announced annual sales up 22% compared to a year earlier.
FAQs
Primark was founded by Arthur Ryan in 1969 as Penney's (not that one...), a shop in Mary Street, Dublin, to bring affordable clothes to Ireland. Today we're an international retailer with more than 70,000 team members in 14 countries, but we're still built on the same foundation: everyday affordability for all.
Why Primark was so successful? ›
It is price combined with an overwhelming large number of fashion items to choose from in their stores. At the bottomline, they sell the kid-in-the-candy-store feeling, the Oh-My-God-I-can-buy-all-of-this-and-still-have-money-left experience. That is their value proposition and that is why they are successful.
What is Primark's strategy? ›
Primark's main strategy is to offer quality fashion at unbeatable, low prices. It takes its value credentials very seriously and at times has taken a hit on its margins rather than pass on increased sourcing costs to its customers.
What are Primark's main purpose? ›
Adored by fashion fans for 50 years, our aim is to bring affordable fashion to everyone around the world. We offer a wide range of products, stocking everything from baby to menswear, home to womenswear. Our Head Office is in Dublin, where we opened our first store in 1969 under the name Penneys.
What questions are asked at Primark interview? ›
Retail Sales Associate Interview questions at Primark
- How would you react if you are asked to do and or finish a task someone else was supposed to do but didn't or couldn't. ...
- They were eager to hire. ...
- What would you do if customers were getting angry because of the long queues?
It has little to no advertising costs, and most of its products are made in countries such as Bangladesh, Pakistan, India, and China. These countries offer tremendously low labour costs that eventually enable Primark to sell its products at low prices.
How do Primark attract customers? ›
The company produces simple trends, manufactures the most popular sizes and therefore utilizes economies of scale to pull the prices down for the end users. Amazon's dynamic pricing has enabled Primark to price its products as per the behavior and buying patterns of the online visitors.
What is Primark's unique selling point? ›
About Primark
| Primark Overview |
|---|
| Tagline/ Slogan | Look good, pay less |
| USP | One of the largest clothing retailers in Europe |
| Primark STP |
| Segmentation | Youth primarily in the ages of 16-30 years |
5 more rowsSep 14, 2021
Protecting life on the planet - We will nurture nature, halve carbon emissions and eliminate waste. Halve our carbon footprint - We will halve carbon emissions across our value chain by 2030. Eliminate non-clothing waste - We will eliminate single-use plastics and all our non-clothing waste by 2027.
What are Primark's key issues? ›
Our research highlights several ethical issues with Primark, including environmental reporting, pollution and toxics, workers' rights, animal rights, animal testing, use of controversial technologies, anti-social finance and likely use of tax avoidance strategies.
Primark is a subsidiary company within Associated British Foods (ABF), and as part of the ABF family we share its core values: taking care of our people, being good neighbours, and fostering ethical business relationships.
What is Primark's target audience? ›
Primary Target Market: The primary target market for Primark is young adults aged 18-30 who are price-sensitive, fashion-conscious and looking for trendy and affordable clothing.
What is Primark's sustainable competitive advantage? ›
Primark main competitive advantage
To compensate for the lower gross margin, Primark has become one of the most efficient retailers when it comes to its fixed assets - store space. Over the past 10 years, sales density has improved considerably, driving higher asset turnover.
Are Primark interviews easy? ›
Primark Interviews FAQs
Is it hard to get hired at Primark? Glassdoor users rated their interview experience at Primark as 79.6% positive with a difficulty rating score of 2.20 out of 5 (where 5 is the highest level of difficulty).
What skills do Primark look for? ›
Job description
- A hunger to deliver exceptional Customer Service.
- Positive attitude.
- Flexibility and determination.
- Willingness to learn.
- An eye for fashion and trends.
- A committed team player.
Common business strengths
- Unique product or knowledge.
- Excellent efficiency and productivity.
- Customer service that creates raving fan customers.
- Speed to market.
- High adaptability.
- Diversification of products or services.
- Strong, decisive leadership.
Known for its quick fashion, basic styles and most prominently, small price tags, Primark has a distinctive offer within the fashion market, with many opting to love or hate the brand. Whatever your opinion of Primark, it can't be denied that it is a very interesting retailer.
Who are Primark potential customers? ›
Primark's core demographic is skewed towards the under-35s with low to medium levels of disposable income, and it is particularly popular among teenage girls and students; however, a lot of the brand's growth is coming from the over-45s who are increasingly buying for themselves and not just for their children.
What is Primark culture? ›
We believe in difference – different fashion styles, different perspectives, different ideas. Our customers come from a wide range of backgrounds, and we take pride in the fact that our colleagues do too.
What social media marketing strategy does Primark use? ›
As we've demonstrated above, part of Primark's huge social media success is their ability to share relevant and relatable content tailored to their consumers. Regardless of lockdown, another way that Primark has always done this is by resharing the content from its influencers across all departments.
Fair pay, safety, and healthy working conditions are essential to our mission. That's why we require all of our suppliers and the factories who make our clothing to meet internationally-recognised standards.
What are Primark's future objectives? ›
We're targeting 530 Primark stores to be open and trading by the end of 2026. Our goal is to open 27 new stores across our markets in the 2022/23 financial year alone, which includes our first store in Slovakia later this year, as well as in Hungary, which will be our 17th market.
What is Primark's green policy? ›
We're committed to halving carbon emissions by 2030 across Primark's entire value chain - from the farms where raw materials are sourced, through production and manufacturing, to when a customer purchases a Primark product in-store and when they take it home to use.
What are the three key values of your Organisation? ›
The four core values of an organization are integrity and ethics, respect, innovation (not imitation), and drive.
Who is Primark's main competitors? ›
Market Competition
High street competition in Primark's core markets comes mainly from H&M and Inditex, who operate similar models at global scale, this has made them two of the largest fashion retailers in the world.
What is Primark unique selling point? ›
About Primark
| Primark Overview |
|---|
| Tagline/ Slogan | Look good, pay less |
| USP | One of the largest clothing retailers in Europe |
| Primark STP |
| Segmentation | Youth primarily in the ages of 16-30 years |
5 more rowsSep 14, 2021
Primary Target Market: The primary target market for Primark is young adults aged 18-30 who are price-sensitive, fashion-conscious and looking for trendy and affordable clothing.
How do you answer unique selling point? ›
Keep your USP simple, concise and clear, making it obvious how your product is the answer to your customers' problems and why this is a good reason to purchase it today. Your USP needs to be your single most convincing reason to get potential customers to buy your product.
What is Primark sustainability strategy? ›
Our clothes will be recyclable by design, made of recycled or sustainably sourced materials and they will last for longer. We will halve our carbon footprint, eliminate non-clothing waste and work to restore biodiversity.
What challenges do Primark face? ›
Our research highlights several ethical issues with Primark, including environmental reporting, pollution and toxics, workers' rights, animal rights, animal testing, use of controversial technologies, anti-social finance and likely use of tax avoidance strategies.
An excellent example of a cheap fast fashion brand is Primark. The Irish multinational retailer and England's top-seller markets trending clothes at incredibly low prices, a practice that encourages consumers to buy an abundance of items only to discard them after wearing them a few times and go back to buy more.
What is Primark's slogan? ›
Primark's motto was “Look good, pay less”, but its success owed little to conventional marketing.
What is Primark's reputation? ›
Primark is battling to save its reputation after more revelations of illegal labour practices and poor working conditions in its supply chain emerged in January. One of Primark's UK suppliers was found to be employing illegal workers and paying staff less than the minimum wage.
