How about this for a crazy retail business model in 2018! A High Street fashion store that doesn’t advertise or offer any form of online sales!
Well that’s the business model of Primark and their sales results make other fashion retailers look like the stupid ones. By not advertising they save an estimated 100/150 million pounds a year in the UK.
They don’t do online sales because:
- It’s high on cost
- It’s open to abuse
- Fashions change so quickly
- They want you in their stores instead
They may not do online sales but that doesn’t mean they don’t do digital! They have 13 million shoppers subscribed to their social media feeds.
NOTE that they create their own BUZZ on social media rather than pay for it!
Primark is the third largest UK clothing retailer behind Next and M&S, both of whom have been struggling in difficult trading conditions. On the contrary, Primark has been gaining market share in the UK and expanding its traditional ‘bricks and mortar’ business model overseas, including Spain & the USA.
The business has come under fire because of their ridiculously low prices, leading people to assume their products are being made in sweatshops. In fact, it is their shrewd business model and effective operations that then allows them to sell items cheaply.
The point of this blog is to highlight that simply following the herd in business is lazy and can result in abject failure. Just look at all the fashion retailers that have disappeared in recent times. It takes guts to be maverick in business which must then be combined with clear vision, mission and values.
If you have a business model that works well then use new technology to ENHANCE your business rather than allowing technology to completely change your business model!
Thank you for reading!
Stuart Allen ~ MD of The Sales Performance Company Ltd
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