Primark And ZARA To Seize Market Share

Back in the second half of last year, there was a lot of media coverage that Primark had defeated ZARA in Spain.

According to financial data, ZARA's annual sales volume in 2013 was 16 billion 724 million euros, with 6200 stores around the world, 1858 in Spain, accounting for about 30%, but sales were only 20% of total revenue, while Primark achieved 4 billion 273 million pounds (equivalent to 5 billion 860 million Euro dollars) in total revenue, with only about 250 stores and only 40 in Spain.

Obviously, Primark and fast fashion brands are nearly 400 a year.

Can not be mentioned in the same breath, the main advantage is in the price war.

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

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, there are more than 250 stores, 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.

so far

There is 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 agency sold 20 pieces of goods on ASOS to test the water on the Internet shopping.

But after 12 weeks, the project was halted.

It is not because it can not be sold, but because the demand is too strong, resulting in the pportation cost greater than the commodity profit.

"The profit margins of our single commodity are very small, which is why even online.

And we can't compete with us. "

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

In addition, Primark does not have any form of marketing activities. 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.

I believe most people will say that we have Taobao.

But I want to point out that the current Primark sales are mainly in Europe, but the majority of the foundries are in Asia. If we open stores to China, we believe that the supply cost can be further reduced.

At that time, the location of Taobao C stores and European "made in China" retailers would be more similar.

Primark has brand effect, consumers tend to believe that Primark is more strict and effective than general retailers in upstream factory control, and the low volume of retailers also restricts its inability to avoid middle wholesalers, which leads to significantly higher supply costs.

But I also believe that it is very difficult to win the market by relying solely on price tactics in China.

After all, the Amoy brands, which are increasingly unable to be ignored, have taken the lead in the middle market and found their balance in price, design and quality.

In addition, the supermarket brand Japanese UNIQLO is also a strong competitor.