Following Primark’s partnership with Asos, Venda’s Chief Executive, Eric Abensur looks at why Primark has decided to make this move into the online space and what it means for the retailer moving forward.
Primark has recognised that even with a solid high-street proposition, neglecting the online channel is not viable for today’s retailers. While Primark will sustain a high level of focus on its bricks and mortar stores, the company realises that it must adapt its business model in line with the preferences of its consumers – who expect to be able to browse and make purchases online, as well as on the high street.
However, this move into the online space may also be indicative of the company’s plans to internationalise and grow in other markets – the easiest, fastest and most cost-effective way to do so is to venture and branch out online.
While partnering with a hugely successful etailer such as ASOS will guarantee that their products are seen by a high volume of consumers, by not developing its own website, Primark is also leaving itself open to losing sales to other brands and products featured on the ASOS site.
Diverting resources away from their own online proposition may have some initial merits, however Primark should quickly be thinking about how it can be disruptive in this space and this will rely on it creating its own individual online presence.
By Eric Abensur
Group Chief Executive
Venda
http://www.venda.com/