Primark’s way to get the lowest prices
consumers always Find the best deals when shopping. There, low-cost clothing brands that seek to compete with ultra-low-priced large companies whose motto is usually the democratization of fashion, play an important role.
One of those low cost chains is Primark. A few years ago, when the Irish series landed in Spain, it was common to see it Long lines At the gates of these stores waiting to enter and get everything they can.
Many wonder why these and other brands are able to command low prices and be competitive in this way. Ten years after opening the first store in Spain – in 2006 in Madrid – John Basson, then CFO of ABF, the company that focuses, among other things, on Primark- Detect working keys.
Primark Business Keys
On the one hand, he notes that in practice advertising spending is very low, which allows him to save to maintain prices. He also pointed out that the raw materials Buy in bulk and directly from suppliers.
In addition, the vast majority of these garments, he noted, are manufactured in countries such as India or Bangladesh, so the company tries to purchase fabrics close to factories.
On the other hand, Basson at the time emphasized adherence to Great roofs It is also key to being able to get low prices as it stimulates buying.
Already in the early years of Primark in Spain, IESE professor Julián Villanueva commented to this newspaper that it was the chain that best adapted the low-cost model to the fashion industry, going a step further than Inditex. In addition, the expert noted that, unlike Amancio Ortega, the Primark is a “fast chain, But it is not a fashion»Because it adheres to basic and simple designs.
According to Villanueva, Primark’s management structure is “very flat” and there are very few subsidized sales. The marketing professor himself pointed out, in a 2016 investigation, that the biggest trick is to make the customer think they are making a purchase. Very good and smart you buy.