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Ethical Analysis Of Primark

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Primark versus other fashion stores In the UK, H&M’s, the other major fast fashion major brand, average selling price of women’s clothes are £10.69, whereas at Primark, the average selling price was £3.87. Further, in terms of the annual average sales of clothes per square meter, H&M sells £3,400 per square metre, while Primark sells £5,300. These clearly point to a more optimised strategy (The Economist 2015). In the USA, Primark’s average prices are approximately 20%, 33% and 40% lower than Forever 21, Old Navy and H&M, respectively (Financial Times 2015a). According to Primark, the cheaper the clothes, the more shoppers will buy. This is reflected in its sales. Primark is able to sell on low prices because Primark enjoys economies of …show more content…

However, today, the focus on stakeholder’s (apart from the shareholders, these are customers, suppliers and employees) expectations has also grown radically. Accordingly, ethical behaviours such as meeting stakeholders’ expectation objectives, environmental objectives and corporate social responsibility, which is accountability to the society and social responsibility, have resultantly become very important. Failure to comply with ethical behaviours can causes a business to damage its brand value and its reputation, which in turn could lead to reduced profits or even losses (Carroll and Buchholtz, 2014). In the past, Primark has overcome such potential market failures. After the collapse of the Rana Plaza factory in Dhaka, Bangladesh, where some of Primark’s product were produced and collapse of which caused more than 1,100 deaths, many individual’s boycotted Primark products opting for a more ethical wardrobe (The Guardian 2014). Previously, Primark has also been linked to UK sweatshops wherein workers worked for 12 hours earning £3.50 an hour (BBC News

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