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Primark Case

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Building a clothing brand from the ground up in the U.S. can be a daunting task for a mid-size entrepreneurial start-up. Given the competitive nature both domestically and internationally, every avenue for increased market share must be explored. The apparel industry in particular is constantly changing due to evolving fashion trends which is stimulated by social media. In order to keep pace, we must continuously offer innovative and unique products to help maintain and grow our existing business. In the event of failing to innovate and upgrade our products, sales will be adversely impacted and create excess inventory. As a result of this, clearance sales and widespread markdowns will help clear the inventory but will ultimately dilute the brand. The current market outlook for the clothing industry in the U.S. can be described as rocky at best. Major brands such as J. Crew, Abercrombie & Fitch, and Gap have struggled mightily. Gap, once the world leader in specialty apparel, has particularly fallen on hard times. Over the past decade, sales have fallen 8% and in June 2016, the clothing giant plans on closing one-quarter of its stores in North America (Faster, Cheaper Fashion, 2015). Primark, on the other hand, is an international clothing brand which was …show more content…

There is currently a huge demand for American apparel in Brazil. Over two million Brazilians visit the U.S. every year and at some point along their visit, make a point to go shopping at various clothing stores (Where Brazilians Love to Shop (Hint: Not in Brazil), 2013). This trend has become so prominent that clothing stores in south Florida are now selling clothes counter-seasonal. This means that during the U.S. winter, summer clothes are on display for its Brazilian shoppers and vice versa for the U.S. summer. There is a real opportunity to flourish in this underserved

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