The document provides details about Primark's business operations including product design, sourcing from manufacturers primarily in Asia, quality assurance processes, store promotions tied to holidays, and financial projections for several women's clothing styles for the autumn/winter 2018 season. It also discusses Primark's target customer profile, marketing strategies, and efforts to promote ethical sourcing and fair working conditions in its supply chain. The document gives an overview of Primark's integrated approach to merchandising across its design, purchasing, planning, and retail functions.
3. Key Message
“Look Good, Pay Less”
“Amazing Fashion, Amazing Prices”
Penneys branded as Primark in GB as the name Penneys could not travel to
Britain as the American retailer JC Penney had the right to use the name in the
region, is a Dublin based fashion retailer owned by ABF (Associated British
Foods) Primark offers a diverse range of products, stocking everything from
baby and kids to women’s, men’s, homeware, accessories, beauty products and
confectionery.
Primark is now run by Paul Marchant but for the fast-fashion chain It all began
in 1969 when Arthur Ryan, who was poached by Garry Weston from Dunnes
Stores, joined forces with finance director Paddy Prior to open the first store in
Mary Street, the success in Ireland led to expansion to the UK, and the company
opened a large store in Belfast in 1971 and one in Derby, England, in 1973 and
now, the company sells more clothes than any other retailer in Britain.
Primark expanded rapidly in the UK in the mid-2000s. In 2005, they bought the
Littlewoods retail stores, retaining 40 of the 119 stores and it was a major
turnaround. Meanwhile, close attention was paid to catwalk trends that Primark
could make it chic as well as cheap for its customers. Today Primark operates
in over 300 stores in eleven countries across Europe like Netherlands, Portugal,
Germany, Belgium, Austria and France. Sales rose by 150% between 2009 and
2014, making Primark a new force in the global rag trade.
The company has also expanded to America with stores in Boston, New Jersey,
Pennsylvania, Philadelphia and will soon open a brand-new store in New York.
Primark opened its current international headquarters back in 2015 in a
redeveloped Dublin building, Arthur Ryan House, formerly Chapel House.
4. Strengths
▪ Club card
▪ Ecommerce shop
▪ Established Company
Weaknesses
▪ Reliance on the UK market
▪ Customers lack of
awareness
▪ Poor Performance of ranges
Opportunities
▪ Range for Bridal &
Communion
▪ Pick up in store option
online
▪ Expand accessories range
Threats
▪ Customers credit card
arrears
▪ High Insurance Claims
(Tesco Home Insurance)
▪ Website Erros & Malfunction
The majority of Primark’s competitors provide both an online and retail
presence and this will allow them to achieve substantial growth opportunities.
Even Forever 21 and Mango (with mangooutlet.com) with similar price
points to Primark, have adapted to an online channel.
Tesco for example (F&F) is only fourth in the UK value fashion market, with
10% share, less than half held by market leader Primark but F&F will most
likely be “the one to beat” in the future but Primark’s growth is pretty steady
and the brand is well known for performing well even during difficult times.
Strengths
▪ Great Return Policy
▪ Ecommerce shop
▪ Very Low Prices
Weaknesses
▪ Product Quality is inconsistent
▪ No reward system
▪ Online shop Flaws
Opportunities
▪ Better it’s ecommerce
Performance
▪ More Celebrity Endorsements
▪ Re-design it’s Children’s range
as it looks “too grown up’’
Threats
▪ Competitors like H&M
▪ Second hand clothing trend
▪ Poor Performance of trendy
ranges
Strengths
▪ Strong brand presence
▪ Ecommerce shop
▪ Unique product line
Weaknesses
▪ Sourcing only from Spain
▪ Frequent Lawsuits for
plagiarism
▪ High competition with Zara
Opportunities
▪ Up to date Maternity wear
range
▪ Expand Plus size range
Threats
▪ Trade barriers
▪ Emergence of new designers
▪ Customers lack of loyalty for
the brand
5. According with Suzie Kelly who works as an Assistant Buyer for Primark
(Menswear, UK) Primark is a very fast pace and dynamic place to work, no day
is ever the same. Within a working week, you would have to analyze the sales
performance and stock levels of the current range, research emerging fashion
trends and competitor movements, develop products for the following season,
attend design meetings, and negotiate prices and shipments with suppliers.
While research is carried out by the design teams who take inspiration from cat
walks, street style, trend forecasters and celebrity influences.
After the identification of the products, they are developed into a technical pack.
The product is then delivered to the sampling rooms of the supplier with
Primark’s specifications briefs. Like most retailers, Primark does not own their
own factories to make their products so the company works with around 700
suppliers - from China, India & Bangladesh, to Turkey and Eastern Europe
countries.
Once the sample has been approved by the buyer, the product is then produced
and checked for quality/ manufacturing purposes.
Products are shipped from Asia (taking around 90 Days) The final product is
then launched in store; key products are often highlighted using POS and the
window displays meanwhile the buying teams are already working on the next
collection. In an interview with hays.co.uk, Stephanie Pilkington who is an
assistant buyer for Primark that buys for stores in the UK and Northern Europe
said:
“Primark is a very buying led business, so you have to know a lot
about the merchandising - As the business continues to grow and
grow, there is a lot more responsibility within the buying teams...”
One of the responsibilities being attending trade fairs in places like Hong Kong
and Bangladesh to meet, connect and negotiate with manufacturers.
6. Any factory wishing to get business from the company has to undergo an
audit which is paid for by Primark and includes confidential worker
interviews, the company has 65 staff around the developing world whose
entire job is focused on ethics.
Those staff are then supported by locals who are trained by Primark.
Around 700,000 people work in the Primark supply chain, meaning that
there are numerous factories in the developing world producing clothing
items season after season.
Primark’s buying team works hand in hand with their ethical trade team,
providing support, running training programs so that buyers are aware of
issues in the countries that their products are sourced from. Buyers receive
regular updates and detailed reports of all suppliers and factories producing
for their department.
The report includes information on each factory’s ethical performance,
recent audit results, and any outstanding non-compliance, along with other
key sourcing data and that allows buyers to make informed sourcing
decisions.
In 2006, Primark joined the Ethical Trading Initiative, a collaborative
organization bringing together businesses, trades unions and NGOs (Non-
governmental organizations) to work on labor rights issues in their supply
chains. ETI members commit to working towards the implementation of a
code of conduct based on the International Labor Organization’s core
conventions. And thanks to those efforts in 2011 and 2012, Primark
achieved ‘Leader’ status in the Ethical Trading Initiative (ETI).
7. Market research, Trend forecasting, and Design:
Technical Pack:
Suppliers and Sourcing:
Product Sampling and Range Preparation:
Once the clothing items are identified and the
product has been sourced the communication
with manufactures starts, an informative sheet
is created with all the necessary components
needed to construct the products. Typically,
the sheet will include measurements,
materials, colors, labels, tags, etc. Any crucial
aspect of the designs needs to be described.
The technical pack is then delivered to the
sampling rooms of the supplier with
Primark’s specifications briefs. Primark has
their basic garments sourced and produced
in Asia while “fast fashion” items are
manufactured in Turkey or East Europe.
I believe that first a buyer has to work with
the design and researching team to select
and build the perfect range of clothes to the
Department you are going to source for.
After the sample is approved, the range
starts to be produced with a lead time of
about 90 days for Asian Manufactures, while
“fast fashion” items manufactured in Turkey
and Europe has an average lead time of 8
weeks which allows Primark to respond
quickly to demand for popular items.
8. The Merchandiser is the interface between Buyer & Exporter, responsible from order analysis to shipment. Merchandising is not only able to adjust to market
variations rapidly but is capable of actually anticipating and helping to create market changes. The Merchandiser is the one who analyzes and decides on
“How Much, How Many, How Often, How long & Where”.
Planning product ranges and stock with buyers are parts of a Merchandisers role, as well as:
• Planning Budgets
• Forecasting Sales and profit margins, presenting
forecasts to managers
• Visiting manufacturers with retail buyers to learn about
production cycles
• Negotiating prices and orders with suppliers
• Negotiate delivery times & track stock deliveries
• Quality Control
• Setting prices and sales targets for stores
• Guide visual merchandisers on store layouts to promote
key lines & special offers
• Competitor’s analysis
• Training and supervising staff
9. While Primark states that its target audience are the “young, fashion-
conscious women under 35s” a couple of minutes into any of its stores will
reveal how that there are people of all ages. But regardless of age and
gender is very clear that the Primark customers are people that don’t really
prize so much the quality because the number of clothes per person is
bigger, so the use per piece decreases.
When it comes to the womenswear it is evident that Primark’s core
consumer belongs to the tech savvy Trend- aware generation. Regardless
of the financial cautiousness it is apparent that fashion is still an essential
part of their lifestyle, the consumer makes purchasing decisions according
to their social needs, such as the desire to be on trend while favoring lower
priced clothing in order to save money, rather than buying less.
Amanda A. Age 22 Occupation Sales Assistant Education Undergrad. Salary 22k P.A.
Bio
Amanda is an undergraduate student who lives with her parents in the South of Dublin
just 30 minutes from City Center. She works very hard trying to keep a balance between
school, work and social life. She checks her social media frequently to keep up to date with
friends, events and trends. Amanda cares about her looks but also likes a bargain, she
loves treating herself with fast food after class or work.
Favorite
Brands
Technology
Personality
10. Primark have successfully constructed an environment that enhances the
brand’s image, all of their shops now showcases an array of impressive digital
features such as the large LED screens which display a series of films depicting
the brands personality. This inspires shoppers and encourages them to spend
more on their seasonal campaigns and trends. This has enabled Primark to
successfully inspire a sense of fashion and style but still keeping its essence, as
a value brand.
Primark takes advantage of most International and Nationals holidays and
Observances some of the major ones are:
New Year’s Eve and New Year’s Day, Blue Monday, Valentine’s Day,
St Patrick’s day, Easter, Star Wars Day, Halloween, Black Friday,
Cyber Monday, Boxing Day, Christmas, New Year’s Eve.
New products come in and everything is linked to the date in question. The
store’s layout and colors change according to the theme of the holiday
and promotions.
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 the word out, with contests, store
opening events and new fashion pieces’ arrival announced on social media by
the current favorite blogger, with that, Primark has managed to create a real
community, for very low costs. Stores are located in prime locations combined
with great shopping environment and deep-cut prices encourage them to
consume more.
For my A/W 2018 Womenswear Promotion, the clothes will be displayed
and featured on Fashion Articles, Blog posts and it will be introduced through
Social Media Marketing, the garments will be shown in trendy Window/Visual
Displays and screens around every store being part of the modern and cool
shopping environment that Primark is becoming (even more) famous for.
11. September 2017 October 2017 November 2017 December 2017
• NYFW
• London Fashion Week s/s
• Milan Fashion Week s/s
• Paris Fashion Week s/s
• Autumn Begins
• Back to School
• Trends Research, fabric,
prints and material selection.
Attending to trade fairs.
• Halloween
• A/W ’18 Range Design
• Sourcing
• Remembrance Sunday
• Black Friday (24th
)
• Pre-Fall Collection (New York)
• Christmas Collection arrives in
store
• Cyber Monday (27th
)
• Christmas Promotions
• Winter Solstice
• Christmas
• Boxing Day
• Technical packs Development for
A/W ‘18
• New Year’s Eve
January 2018 February 2018 March 2018 April 2018
• January Sales
• Blue Monday Promotions
• Men’s London Fashion Week
• Men’s Milan Fashion
• Men’s Paris Fashion Week
• Technical packs sent and
samples ordered for A/W ‘18
• Six Nations Rugby
• Valentine’s Day
• Haute Couture (Paris)
• NYFW, London, Paris & Milan
Fashion week
• A/W ’18 Samples received
and approved
• Woman’s Day
• St Patrick’s Day
• Mother’s Day
• Production order for A/W
’18 placed
• Easter
• NYFW (bridal)
• NYFW (new designers)
• Mid-season Sales
• A/W ’18 (Samples) Photoshoot
and Campaign Development
May 2018 June 2018 July 2018 August 2018
• Wedding season starts
• Star Wars Day
• A/W ’18 Marketing
Campaign Development
• Father’s Day
• Summer Solstice
• Summer Music Festivals Stars
• A/W ’18 Shipment arrives,
garments inspected and
approved
• Wimbledon
• Summer Holidays starts
• Haute Couture (Paris)
• Launch of the A/W ’18
Campaign & Promotion
• World Photo Day
• Bank Holiday
• A/W ‘18 Range arrives in Store
12. My Mood Board for the A/W Range is inspired by Black & White Photography and the early rusty colors of Autumn.
13. GARMENT STYLE NR FABRIC COLOR SIZES UNITS COST TOTAL
COST
MARKUP RRP EXPECTED SALES AND MARGIN
FULL
PRICE
25%
OFF
50% OFF
CAPE STYLE COAT WITH
FAUX LEATHER DETAILS
A/W001 50%
COTTON
45%
POLYESTER
5% FAUX
LEATHER
8
10
12
14
16
20.000 €9 €180.000 177.78% €25 15.000 3.000 2.000
4.000
5.000
6.000
4.000
1.000
€25 €18.75 €12.50
CIGARRET TROUSERS
A/W002 50%
COTTON
40%
POLYESTER
10%
LYCRA
8
10
12
14
16
10.000 €6 €60.000 116.67% €13 FULL
PRICE
25%
OFF
50% OFF
2.000
2.000
3.000
2.000
1.000
5.000 4.000 1.000
€13 €9.75 €6.50
14. GARMENT STYLE
NR
FABRIC COLOR SIZES UNITS COST TOTAL
COST
MARKUP RRP EXPECTED SALES AND MARGIN
FULL
PRICE
25% OFF 50% OFF
STYLISH OFFICE WEAR
FITTED DRESS
A/W003 65%
COTTON
20%
POLYESTER
15%
LYCRA
8
10
12
14
16
20.000 €6 €120.000 150.00% €15 15.000 3.000 2.000
4.000
4.000
6.000
4.000
2.000
€15 €11.25 €7.50
LONG SLEEVE TOP WITH
BUILT-IN FABRIC BELT
DETAIL
A/W004 80%
COTTON
20%
POLYESTER
8
10
12
14
16
20.000 €5 €100.000 160.00% €13 FULL
PRICE
25% OFF 50% OFF
4.000
4.000
6.000
4.000
2.000
15.000 4.000 1.000
€13 €9.75 €6.50
15. GARMENT STYLE
NR
FABRIC COLOR SIZES UNITS COST TOTAL
COST
MARKUP RRP EXPECTED SALES AND MARGIN
FULL
PRICE
25% OFF 50% OFF
LONG SLEEVE PEPLUM
TOP WITH SEWING
DETAILS
A/W005 80%
COTTON
20%
POLYESTER
8
10
12
14
16
20.000 €7 €140.000 128.57% €16 10.000 5.000 5.000
4.000
4.000
6.000
4.000
2.000
€16 €12 €8
HIGH WAIST FITTED
SKIRT WITH “LAYERS”
DETAILS AND ZIPPER
A/W006 70%
COTTON
20%
POLYESTER
10%
LYCRA
8
10
12
14
16
10.000 €5 €50.000 140.00% €12 FULL
PRICE
25% OFF 50% OFF
2.000
2.000
2.000
3.000
1.000
5.000 4.000 1.000
€12 €9 €6
16. GARMENT NUMBER UNITS COST RRP FULL PRICE RRP 25%OFF RRP 50% OFF TOTAL REVENUE
A/W001 20.000 €180.000 15.000 UNITS 3.000 UNITS 2.000 UNITS
€456.250
€375.000 €56.250 €25.000
A/W002 10.000 €60.000 5.000 UNITS 4.000 UNITS 1.000 UNITS €110.500
€65.000 €39.000 €6.500
A/W003 20.000 €120.000 15.000 UNITS 3.000 UNITS 2.000 UNITS €273.750
€225.000 €33.750 €15.000
A/W004 20.000 €100.000 15.000 UNITS 4.000 UNITS 1.000 UNITS €240.500
€195.000 €39.000 €6.500
A/W005 20.000 €140.000 10.000 UNITS 5.000 UNITS 5.000 UNITS €260.000
€160.000 €60.000 €40.000
A/W006 10.000 €50.000 5.000 UNITS 4.000 UNITS 1.000 UNITS €102.000
€60.000 €36.000 €6.000
I’VE BOUGHT MY RANGE FOR A TOTAL OF €650.000 AND SOLD IT FOR €1.443.000
