8 reasons why Primark is cheap

Manuel Ruiz-Alba
2 min readNov 26, 2012

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Primark, the Irish clothing retailer that serves cheap fashion has become a business success. Let’s review 8 facts that explain why they have an inexpensive price for their clothes.

1) Supply Chain: Like it posted a couple of weeks ago in Zara vs. Primark, Zara delivers fashions while Primark deliver clothing. The irish company delivers clothes as a commodity so they do straightforward desings with cheap materials that does not lenght a lot. They do not have repeteated collections. What they have in stock its what they sell. This reduces stocks costs.

2) Low Running Costs: Primark stores are usually located in the outskirts (with some exceptions like Barcelona L’illa store) so the local rent they pay is relatively low.

3) Low advertising costs: No commercials, no TV, no magazines. They save money. Dont worry they just work with the word of mouth.

4) Human resources: lots of unexpensive workers that are usually tidying up the clothes tables and on cashiers. They do not need a lot of management.

5) Huge stores: in europe where all the sizes are smaller than in the US, Primark stores are noticeably bigger than their competitiors. They can earn more money through volume more than by margin.

6) Supermarket techniques: like loss leader. They have products by almost nothing. By the sum of those cheap articles plus some others that are not that inexpensive is how Primark do business.

7) Quality/price not bad at all. Stores are usually full of non-resident families.

8) Customer deal perception: with 20€ you can buy many items that really look great. The client’s feeling after purchasing at Primark is usually as follows:

Happy customer #1: “Look what I bought for 20€! What a bargain!”

Happy customer #2: “Wow! For less than 30€ I got new shoes and a new dress for tonight party!”

The positive sensation helps the customer to keep coming back in the near future and also to recommend the retail clothing store to his/her friends to buy. As you can see, neuromarketing is quite powerful and it applies to this concrete situation. Low cost marketing and neuromarketing have a clear presence into Primark marketing strategy.

How do you feel when shopping such a nice deal? And what about when you buy something rather expensive that and the end you don’t even need?

Please, let me know how do you feel when shopping right bellow on the comments section!

Primark is a clothing retailer that sells cheap

Originally published at www.marketingandeconomics.com on November 26, 2012.

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Manuel Ruiz-Alba
Manuel Ruiz-Alba

Written by Manuel Ruiz-Alba

Family Man interested in📱Tech ⏳Productivity 📈Marketing 💰Personal Finance

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