Page 1: Introduction
Rapid changes in media, transport and communications technology have made the world economy more interconnected now than in any previous period of history. Nowhere is this more evident than in the world of textile manufacture and clothing distribution. Consumers want fashionable clothes at affordable prices. Much of high street fashion is produced in various countries across the world. Businesses source clothes from countries like India, China, Bangladesh and Turkey because of lower material and labour costs in these countries. In order to meet consumer demand, Primark works with manufacturers around the world.
Primark is part of Associated British Foods (ABF), a diversified international food, ingredients and retail group. Primark has almost 200 stores across Ireland, the UK, Spain, Netherlands, Germany, Belgium and Portugal. Primark”s annual turnover accounts for a significant proportion of ABF”s revenues and profit.
Primark”s target customer is fashion-conscious and wants value for money. Primark can offer value for money by:
- sourcing products efficiently
- making clothes with simpler designs
- using local fabrics and trims
- focusing on the most popular sizes
- buying in volume
- not spending heavily on advertising.
Primark”s business growth comes from meeting these customer needs whilst continuing to expand stores and move into new markets.
This case study shows how Primark sources the clothes it sells in its shops in an ethical and fair way, often at added cost to itself.