What We as Marketers Can Learn from the Latest European Brands to Find Success Stateside
By Amy Bruining
Where is the future of fashion? Across the pond, as always!
Throughout the history of retail, trends have consistently stemmed from the European runways. Yet American retailers were always able to pull trends into their apparel, and still add their own flair. Now, shopping malls stateside are experiencing a shift in stores’ overall culture.
The surefire success strategy lies not so much in promoting the products, but in promoting a lifestyle.
Past decades celebrated the Americanness in clothing. Brands such as Tommy Hilfiger, Ralph Lauren, and the Gap are prime examples. However, times have changed. Case in point: our prior discussion on the declining popularity of Abercrombie & Fitch.
While some of the most definitive American brands are losing their ability to gain interest from U.S. consumers, a new idolization of British culture and lifestyle is taking hold, especially in retail. For instance, with the royal family’s additions of Prince George and Princess Charlotte, children’s wear is more chic than ever. And the Duchess of Cambridge, the former Kate Middleton, along with her sister, Pippa Middleton, reign as top fashion icons, frequently spotted in many favored European retailers. So it’s only fair that the rest of the world desires the looks of this posh culture, right?
Additionally, the Swedes have made their mark with H&M and IKEA, so you may wonder what the stylish Europeans plan to introduce next. The following is one popular brand that’s set its sights on making waves from clear across the pond — in the good ol’ U.S. of A.
Make Way for Primania
No, tweed is not making a new fashion statement. But the Irish-born retailer Primark seems to be. Although it originated in Ireland, stores began popping up in Great Britain before spreading throughout Europe. And, according to theEconomist, the retailer “now sells more clothes than any other retailer in Britain.”
The surefire success strategy lies not so much in promoting the products, but in promoting a lifestyle. The images on these social channels show how one might decorate a bedroom, work out in Primark gear, or dress their children for the first day of school.
Founded in 1969, Primark didn’t anticipate Primania — a nickname often used by Europeans to refer to the retailer’s skyrocketing success. But when the economic crisis hit in 2008, the fast-fashion retailer was still seeing unexpected profits. More than likely, this is because young women began to care more about how much they could purchase for their dollar. This financial downturn then prompted the ever-present retail war on quantity versus quality.
Because fashion and culture are shifting, purchase habits have changed. While consumers desire new cultural icons, they are not always apt to pay top dollar for high fashion. That’s why Forever 21 and H&M have seen success. And Primark is seeing much of the same.
Finding Fast Fashion
Embroidered logos are losing value, and fast fashions come with a cheap price tag that begs consumers to buy more. Primark’s T-shirts and tops may be disposable trends, but they still hold up as wallet-friendly. More importantly, the brand’s apparel caters to the economic struggle of middle-class American women.
In 2011, the Telegraph noted the brand — due to its “ability to churn out runway copycats at dirt cheap prices.” In April 2015, blogger Erika Adams discussed this growing label, as well as the retailer’s entrance into the U.S. market. She quoted the Telegraph’s Katherine Rushton, who stated, “For shoppers that are after clothes they can afford to ruin (or for their children to ruin), or trend-led items they know will be wear-once wonders, Primark fits the bill.”
The wait is over… Primark Boston is here! #PrimarkUSAwww.primark.com
Posted by Primark on Thursday, September 10, 2015
Primark has also leveraged the use of “mini seasons” in retail. Instead of catering to the standard four seasons, the brand cycles store apparel every few weeks to keep on-trend fashions. Essentially, this is a good tactic to see what items are selling and what are not. It’s an optimal way to forecast what types of clothing should continue to be manufactured and distributed.
September 2015 marked the opening of Primark’s first U.S. store. The clothier chose Boston as an ideal location due to its bustling Irish culture and plenty of fast-fashion-loving millennials. So far, the opening has proved trends triumph in retail. CNN Money also noted that the brand witnessed a 115 percent sales increase from 2009 to 2015. And it’s evident the excitement for the new U.S flagship is budding from the following tweet.
Ultra-Low Pricing
The decision to expand across the pond was made with careful consideration — especially since major competitors are Forever 21 and already-established H&M. Primark executives questioned whether it would turn a significant profit. Yet it holds a great advantage. Adams remarks that along with cheap clothing for men, women, and children, the store offers interior décor that “could spell trouble for traditional home retailers.” Even though Zara and H&M are also introducing home goods, Primark’s offerings are incredibly cheap. JCPenney and Kohl’s may have a new retail rival presenting low-cost modern bedding, duvets, and towels.
Analysts predict continued growth will sprout from ultra-low pricing. The price points of most “Primarni” apparel (as nicknamed by the Telegraph) begin below US$20 — perfect pricing to sway shoppers from Walmart or Target. Product lines also show pricing to be 22 percent lower than Forever 21’s. In the UK, Primark’s average selling price is £3.87, while H&M’s stands at £10.69. But to stay competitive, Primark needs to keep slashing prices, and some worry this will eventually force the store to issue profit warnings. Until then, T-shirts list at $4, along with $3 jewelry.
E-commerce Ejection?
Many argue that while Primark may be a rising star in retail, it will not remain relevant without e-commerce. The point is logical, and for some in the fashion world, they believe the brand’s decision to stay in-store will be the reason for its eventual ejection.
Tom Laband, managing director of Sevenval Ltd. in the U.K., holds this theory and presumes Primark’s prominence will soon fade. He stated, “We’re living in a time when offline retailers increasingly have to close shops, overall trading volume shifts massively to purely digital delivery and brands are being forced to give their customers more purchasing channels to choose from.”
Primark’s T-shirts and tops may be disposable trends, but they still hold up as wallet-friendly. More importantly, the brand’s apparel caters to the economic struggle of middle-class American women.
Yet what constitutes the decision for commerce to remain offline are, again, the rock-bottom prices. After all, shipping costs alone for most items would outweigh the price points for most purchases. In an interview with Digiday, John Bason, chief financial officer of Primark’s parent company, Associated British Foods, remarked, “E-commerce is not a profitable avenue.” One can’t argue with this. Especially when it comes to consumers returning items, and the brand not making any profit.
Despite such criticism, Primark executives are optimistic and continue to foresee growth. Hilary Milnes of Digiday noted, “Primark — at least so far in Europe — has found itself in a rare situation for a 2015 retailer: steering clear from spending resources on e-commerce while still flourishing financially.” We anticipate a flourishing future now that it’s landed on U.S soil, and we’ve entered 2016.
Powerful Digital and Social Media Promotion
Primania appears to only gain momentum, and the ground-level pricing isn’t the other obvious advantage. Primark also maximizes its digital promotions, and utilizes omnichannel messaging and promotion. Due to the disadvantage of e-commerce, the retailer has learned to leverage social media for driving in-store traffic.
It has created a fascinating digital shopping atmosphere with lookbooks, blog articles, and videos. Even if one can’t buy online, in-store products for men, women, kids, home, and beauty are clearly categorized and displayed. The online experience allows for easy navigation and highlights key trends for New Year’s wear, spring 2016, and more. The use of hashtags on the website helps categorize collections and streamline to social channels. For instance, the landing page displays the most popular hashtags of #PrimarkWorkout and #SS16Collection, referencing Primark’s fitness gear and new spring apparel.
The brand has even adapted the favored name, Primania, and uses it to feature customer Instagram uploads of Primark styles. Consumers are told to “Put your Primark on and show it off. Post, browse, rate, and share looks — this is your fashion playground.” When searching for #Primania, one can pull up more than 13,000 photos, and the content platform housed on its website is quite unique. Each photo must be uploaded by the user and include the date, store of purchase, and where you wore it. Even better is the option to give out “Primarks,” which can be transferred as in-store credit!
#Primania has also flowed into the in-store experience — allowing the physical and digital realms to unite. Similar to the strategy of the luxury British label Burberry, Primark has created LED screens to sit in-store and cycle through Instagram photos of bloggers and consumers sporting their clothing. This allows consumers to generate outfits prior to purchasing.
The brand’s Facebook, Instagram, and Twitter accounts, which are gaining a U.S. following, show handpicked outfits with backlinks and prices. With over 4 million “likes,” the Facebook page features a virtual walk-through of the four-story Boston store. The Instagram feed has over 2.6 million followers, and displays quirky home décor, motivational fitness ’grams, as well as cute accessories. And these same images are often tweeted or chronicled through Snapchat.
The surefire success strategy lies not so much in promoting the products, but in promoting a lifestyle. The images on these social channels show how one might decorate a bedroom, work out in Primark gear, or dress children for the first day of school. Additionally, Primark has learned to establish relationships with the consumer — to create interactions that lead to interest in its brand. The posts not only promote, but they also ask questions, start conversations, and help the retailer obtain consumer opinion about its products.
The majority of the brand’s digital prowess has developed from the addition of WGSN’s Jayne Bibby. The former deputy catwalks editor joined Primark as its digital content editor in 2014, and is ensuring the brand continues to make strides in social strategy and innovative content creation. And Primark’s CEO George Weston will see to this. He recognized the brand’s required digital presence in ABF’s annual report and said, “Social media plays an important part in the way our customers live their lives and is an increasingly effective way of broadcasting the excitement of the Primark brand far and wide, thereby enticing more customers into our stores more frequently.”
Luck in a New Land
Will Primania spread in the U.S.? Time will tell. But with the prosperity of the new Boston location, Primark has also opened a Philadelphia store at the King of Prussia Mall. And the plan is to open seven other locations in the northeastern United States by 2017. It appears that this retail warrior has an opportunity to find more luck in the land of red, white, and blue. But this will only happen with capitalization on core strengths: fast-fashion trends and continued low pricing, as well as seamless digital strategy and user experience.
If you can’t make a trip to one of these new locations, be sure to check out Primark’s U.S.-dedicated website. And stay tuned for other highlighted European brands making it big in the USA!
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