British fashion chain takes a unique road to success
Businesses of all kinds must weigh their cost investments with the opportunity for success and growth. The retail industry has developed in a substantial way over the past handful of years, thanks in no small part to the rise of social media, comprehensive mobile devices, and other technological advancements. We now see businesses offering their products online, advertising on Facebook, and much more. However, not every business experiences success the same way. A recent story published on Bloomberg takes a look at how Primark, a teen fashion chain, has reached tremendous levels of growth and popularity without the use of the Web.
The point of success for Primark seems to be their conservative, tightly reined approach to spending and costs. By maintaining a very small staff, avoiding the Web, and generally avoiding advertising altogether, Primark is able to offer customers quality products at competitively low prices. It stands to reason that cost is one of the most important factors in a customer’s decision-making process, but it is nonetheless surprising to see this bold move paying off so well for Primark. Their sales jumped 15% last year and are expected to have experienced a jump of 23% over the sixth-month period ending on March 2nd. Keeping overhead low allows for much more attractive price tags.
What Primark has to face is the challenge of keeping the “buzz” of their brand alive. Thankfully, good products and low prices speak for themselves. Teenagers and young adults will talk with one another about these products and this chain, and it will continue spreading as long as the prices remain low and the clothes remain stylish and well-made. It’s very interesting to see how retail businesses can experience success in different ways.