Now headquartered in Massachusetts, USA, it has a global revenue of 7bn. Photos: Primark Sustainable Cotton Programme. However, in spite of its retail success, Primark has been struggling to overcome the consumers pre-fixed notion that fast-fashion is not sustainable, and certainly not ethically made. In the US, Primark has partnered with the charity Delivering Good, in which stores donate unsold items to those in need. If you go to a Primarks further up North, in Grimsby, UK for example you can see people are buying one or two things, not bags and bags of things - and we can see this reflected in our sales data. Off-site worker interviews by trusted organizations will more likely reveal the truth than company organized visits.. In a factory setting, where the management team usually male dominated, female workers can be pressured to work overtime without pay to reach production targets, or denied the right to maternity or sick leave. Primark has joined sustainable apparel coalition (SAC) for improving environmental and ethical impact on their supply chain. As we launch the Primark Sustainability and Ethics Progress Report, we reflect on a foundational year, which was focused on developing the internal processes and programmes that will underpin the changes needed within Primark and across our value chain to deliver on our Primark Cares strategy. We deliver. This short film shows how Primark's programme in Bangladesh has help provide essential health, hygiene and nutritional education for garment workers. For us, we felt there was a natural cadence for getting this information out and launching the website was the first step, with the Global Sourcing Map following on as a second phase, Katherine Stewart, Ethical Trade and Environmental Sustainability Director at Primark, told Edie.net. Primark Stores Limited (/ p r a m r k /; trading as Penneys in the Republic of Ireland) is an Irish multinational fast fashion retailer with headquarters in Dublin, Ireland. In September 2015, an ACT delegation, which consisted of IndustriALL and leading representatives from Primark, H&M and Inditex travelled to Cambodia to meet with suppliers, garment unions, the Labour Ministry and the Ministry of Commerce and the garment manufacturers association of Cambodia. We currently feel that information is competitive intel we do not want to share. It's really interesting and been very helpful for when we have been giving school talks or teaching at colleges, adds Stewart. Infographic Living Wage: Clean Clothes Campaign, Tailored wages report 2014. One of the many places that Primark gets its cotton from is Gujarat in India. Primark, the Irish fashion retailer owned by Associated British Foods (ABF), is seen as one biggest fashion retail success stories of the past decade. Whether its financial literacy, health education or helping workers understand their rights, weve seen that simple initiatives with local partners can make a huge difference., What Primark is doing to improve the lives & wages of its garment workers. It outlines the key processes, technologies, and partnerships that the organization will use to optimize the efficiency and effectiveness of its supply chain. For Stewart, the community impact of the programme and the knowledge the farmers have gained thanks to the programme has been the most rewarding to witness. The thing about Primark is that we communicate the things that we have done - rather than the things we want to do, explains Stewart. Skip to main content Skip to navigation hot-topics Trending Four-day week The Company has been said to be the biggest Company across Europe with . Brands should plan accordingly so no garments go to waste., What Primark is doing to cut down its use of chemicals, Our objective is to have full traceability from all Primark supply chain partners of upstream manufacturing, product and chemical inventory information for every point in the supply chain, Primark also supports the Partnership for Cleaner Textile industry (PaCT) 16, a holistic programme which supports the Bangladesh wet textile processing factories in adopting cleaner production methods. Here, you'll find a case study on Starbucks' supply chain strategy. But the value fashion retailer has yet to explore alternative solutions or set itself fixed goals in reducing its greenhouse gas emissions. Primark is part of the Better Work programme and a full member of ETI - all positive initiatives which can contribute to better labour conditions. For example, Primark is working on improving its injury rate as part of its wider scheme to boost its safety performance, according to its Corporate Responsibility Report 2016. However Primark does not tackle its factory audits alone. Strong union representation can bring labour violations to light. A supply chain strategy is the overarching plan that an organization uses to manage the flow of goods and services, from sourcing raw materials to delivering products to customers. Will a Sustainable Future for Agriculture Take Us Underwater? How Primarks Sustainable Cotton Program is impacting the lives of female cotton farmers, The reported results show that working with farmers at this level can have a number of positive impacts. So we are sharing that information - we are just not making it public. Sustainable Brands When asked on Primarks current opinion on adopting a circular business model, Stewart acknowledges that it is an area the value retailer is exploring, but is not ready to take on as a future goal. But how sustainable is Primarks sourced cotton? The Marketing Strategy process displayed in Figure 1, adapted from Hooley et al, (2008) demonstrates the various stages . In order for Primark to improve their practices to be more sustainable, we believe they need to address the full scope of these inputs, Although Primark has been transparent with its energy efficiency and waste management, it is clear the value retailer still has some ways to go to ensuring both its supply chain and vast store network become more sustainable. Our Primark Cares strategy is enabled by and underpinned by five key principles: Our commitment to ethics and human rights through our Code of Conduct and Supply Chain Human Rights Policy. In a new initiative, Primark will: Make clothing from recycled or sustainably sourced materials. Plus, our third-party logistics providers. According to WRAP, approximately 140 million pounds worth of used clothing is sent to landfills in the UK each year - accounting for 30 percent of consumers unwanted clothing. We wanted to develop a deeper understanding concerning the manufacturing processes behind cotton. The programme was originally designed to introduce sustainable farming methods, improve cotton yields and increase the cotton farmers income. The factories featured on the map are Primark's suppliers' production sites which represent approximately 94% of Primark products for sale in our stores. The ERICC system offers real-time information on the primary energy drivers within any store and indicates how a store should be performing from an energy management point of view. Its suppliers factories. It occupies 80 offices in 21 countries. In total 6,279 workers in 436 groups have been trained through the programme since 2009, which has impacted the lives of approximately 30,000 garment workers. About a 4 minute read. But if it isnt available, then consumers should also be proactively asking why not, and what retailers are doing on certain subjects. For us sustainability is just about doing it across the board, notes Stewart. Credit: Primark. Primark also runs its Retail Manager Development Programme (RMDP), a bespoke supervisor development programme in the UK and northern Europe and is in the process of rolling it out to its other countries. As a business we care about the impact. In addition Primark has also achieved the Carbon Trust Standard for Waste for its waste management systems in store and is working to assume direct control over as much of its recyclable materials used during packing and transport as possible. Publicly showing their wage calculations would be a good start., One brand cannot single handedly raise wages for the workers who make their clothes, Other NGOs agree that the key to implementing fair, livable wages within the industrys supply chain lies within collaboration. Primark adds that it does acknowledge the inherent challenges in defining and calculating a living wage, but it believes that a negotiated approach remains the most practical and sustainable move and supports the development of all industrial strides taken to achieve this. Published 5 years ago. During the first year a factory has to demonstrate that it . Sign up for SB Brand-Led Culture Change, best rates expire March 3rd! We are often asked how we can combine low prices with good standards in the supply chain. Credit: Love Your Clothes, Video: I:CO | RETHINK. The team works together to make sure each location is fully compliant with the regulatory requirements and that the value retailer continues to meet accepted good practices within the retail industry. Is Primark doing enough in terms of sustainability with its excess stock? However, this boost in income also brought on a new set of concerns for the female cotton farmers who participate in the pilot, as they were not used to managing a large cash flow. for only $13.00 $11.05/page. I dont care really, I love this jacket.. Working with supplier factories through its Ethical Trade program and having in-country teams analyzing payroll data is part of the company's strategy, as well as following fair purchasing practices. On their website, under Our Ethics, 8 Primark claims that all factories are inspected and audited. Brands should take wages out of the competition and start working together on payment of a living wage, stresses Tara Scally, Dutch Campaign Coordinator Clean Clothes Campaign 11. Primark's supply chain, and indeed business strategy, is based on a highly efficient sourcing model whereby it aims to get products from initial design concept onto shelves in as little as six weeks, with merchandise sourced from all four corners of the globe. Primark is not the first fashion high street retailer to initiate an in-store recycling scheme with I:CO, but one key difference between the Primark clothing recycling pilot and other fashion retailers textile recycling programmes is the customer incentive. Zero Discharge of Hazardous Chemicals (ZDHC) Program, Digital RMG Factory Mapping in Bangladesh, comprehensive and accurate data on factories. This written down reality says nothing about what is really happening within the supply chain. But we have been very pleased with the trial and our decision to roll it out. Stewart notes that they may have to adopt a slightly different model in the US due to legal reasons, but they aim to have a similar system in place overseas. But this also means consumers are more tempted to buy something without trying it and will be less inclined to return an ill-fitting garment, as it could cost them more in travel costs going back to the store than the actual garment itself. As Primark has become more actively involved in the recycling process of its materials, it has been able to significantly reduce the volume and frequency of waste collections at each store and aims to expand this system to additional regions. Our reason for doing so is to control and retain the integrity of them. Usually suppliers contact an external party of their own choosing when conducting a factory audit. Strategy No. The partnership, which sees Primark and Geosansar also provide financial education, as well as access to banking, has helped over 400 workers. Without confidential worker interviews, many of these workers who fear losing their jobs - usually their only means of an income - may never share their real working experience with suppliers clients. Its one of our challenges we have to deal with. Since then Primark has continued to work with local partners and non-profit organisations to ensure any funds or support they gave to workers and their families would be secure by offering financial advice and guidance. Consistently providing a wide variety of goods at low prices . So now we have implemented our Farmer Field School to help them manage their own income and run their own businesses. By offering these female farmers advice and guidance on how they can best manage their income and oversee their cash flow, Primark aims to ensure the cotton workers become financially independent. In addition Primark has joined a number of partnerships to ensure its products are made as sustainably and responsibly as possible, with as little harm to the environment. Female garment workers often face numerous issues such as sexual harassment, threats of violence and prejudice within the workplace. From my point of view, I have seen real change coming through. But I find it more difficult to share what we are doing sustainably because we do not make capsule collections and cant just hang a little label on it. However, some pioneering companies, like Filippa K and Nudie Jeans are beginning to break this mould and commonly report their factory lists, audit outcomes, and other data. For me, its really all about education. Primark has a large range of products from men's wear, women's wear, children's wear, accessories, footwear, lingerie, home wear, hosiery and much more. Halve carbon emissions across its value chain. But now, we are all sharing factories and therefore human rights has to be a prerequisite for us, as it should be for all., Although some may argue that not a lot seems to have changed within the fashion industry concerning the lives and rights garment workers since Rana Plaza, Steward disagrees. The reported results show that working with farmers at this level can have a number of positive impacts on yields, chemical and water use reduction and increased income, says Jacinta FitzGerald, Head of Research at Project JUST 2. This is epitomised by brands like H&M, Primark, Boohoo, and Forever21 churning out affordable garments. The strategic plan of Primark consisted of the strategy of growing inorganically as well as organically. SM Insider Current Issue. Primark shares a number of core principles within its Code of Conduct with the Fair Wear Foundation Code. For example, in India, Primark is working together with local partners like the Association for Stimulating Know How 11 (ASK) in one of its main suppliers, Jeyavishnu Mill, to improve its recruitment process. This pack provides Primark suppliers and potential suppliers with key information and guidance about trading with Primark and how we work with our suppliers. Credit: Simon Trel for FashionUnited. We have to find a way of explaining to the customer not to make that assumption, as price is not an indication of good or bad ethics. Over in Spain, in Madrid one Primark retail worker claimed he was making the same amount of money working 30 hours a week at Primark in 2016, as he was working 12 hours a week at department store El Corte Ingls in 2007 6. Primark notes it is constantly reviewing its routes, type of vehicles used and shared services to ensure it minimise miles and the resultant emissions as the company expands. Input costs were reduced by 19.2 percent on average. Primark tries to cut down all unessential expenses, reduce wastage, less direct marketing option, so that it can maintain the cost of the product. But the inspection reports are not made public, so it is impossible to verify if these inspections are really taking place; what is monitored; what problems are found and what corrective actions come out of these audits., Being honest about the issues and problems and the steps brands are taking to improve labour conditions, is key, adds Schuurman. With such rapid growth, the retailer's technology needs have changed considerably over time and having the . Jobs. It shows how the company has managed to embrace technology to deliver its products to customers in real time. Learn more: Supply Chain Planning Your Strategic Guide to What, Why and How As a leading member of ETI, Primarks Code of Conduct is founded on the ETI Base Code which stresses that wages and benefits paid for a standard working week meet, at a minimum, national legal standards or industry benchmarks, whichever is higher. Next to its textile and garment recycling initiative, Primark has been working with two organisations to efficiently manage its textile waste while helping those in need. If you think about the cotton project for example, we only started communicating that last year, when we have been working on it for three years. For example, the fashion retailer has committed to improving the durability of its clothes from 2025; they must be able to be washed at least 30 times without wear and tear. Depending on how consumers respond to the video, Primark may consider creating more - but for now the value retailer is pleased with their first 360 degree video. Photo: Amsterdam Flagshipstore. And in Portugal, the retailer is considered a fashion expert. By sharing our supplier base information it enables the Accord to map all the factories that everyone is using in the region as effectively as possible. Primark previously kept the details of its suppliers factories private, regarding it as a matter of commercial advantage. However, despite of all its initiatives aimed at modern slavery issues, Primark is still regularly accused of sourcing from sweatshops and forced labour camps. It can help with this initial scoping phase of strategy development. In addition to the online course, Primarks safety platform also includes additional information on safety topics, like office safety and emergency procedures. So it is important to remember that these flagship stores attract huge amounts of people and we shouldnt get side tracked as to what is looks like across the board., As long as we stimulate seeing clothing as a disposable product instead of an investment, the race to the bottom will continue, Stewart adds Primark has also been investing in creating better quality clothing to help combat the stigma that its offers throw-away clothing and ensure their products last longer. All the stock we have in store which we cant sell, all our buying office samples and excess stock, is donated to Newlife. Primark first started working with Newlife in 2010, and since then has managed to generate more than 2 million pounds in donations, which has been used to purchase equipment such as wheelchairs, nurse services and fund medical research. I know people will often say that the quality isnt very good at Primark, but we have invested a lot in quality over the last few years, says Stewart. Consenting to these technologies will allow us to process data such as browsing behavior or unique IDs on this site. Primark is a member of the Sustainable Apparel Coalition. Infographic timeline Primark: FashionUnited, Rana Plaza disaster photo: AFP. We are building things to last. She claims she has had a suedette jacket she is wearing from Primark for years, and that her co-workers have even begun to joke about how often she wears it. Its a ripple effect and quite incredible to see, because they may have a neighbour who grows cumin and now are able to share knowledge on which chemical or natural pesticides are best to use. Photo factory via Pexels. So far this tactic has enabled the budget fashion giant to multiply its store openings without saturating its market for consumers. The audits include onsite waste management practices, review of store emissions and ensuring all equipment is properly maintained. Primark's new sustainability strategy includes nine concrete pledges. These teams based in its nine key sourcing locations, such as China, India, Bangladesh and Turkey, act as the retailer's "eyes and ears on the ground," according to Katharine Stewart, Primarks Director of Ethical Trade & Environmental Sustainability. It is mainly sourced from countries like China, India, Pakistan, Turkey, Brazil or the United States. Primark is experiencing "limited availability" on some of its product lines due to supply chain disruption, the retailer's owner has said. These are: Giving clothes a longer life - We will become a circular and more sustainable business. Credit: Zoella. For example, Primark established a resource recovery unit in its German depot centre in July 2015, where cardboard, plastic and hangers are collected from its Northern European stores to be reprocessed and sent for recycling. Video: PRIMARK | Farmer Case Study Hirus Story. In united states, Southewest Airline has same strategy with success in aviation sector. Unlike other clothes shops, people often come to Primark because they know theyll be able to afford a whole outfit, [But] I do not think we are actively encouraging people to buy more than they need with our low prices, we are providing affordable fashion, argues Stewart. Because if you give someone an education, it stays with them and thats sustainable. She stressed that the cotton project focuses on giving farmers a hand up, not a hand down in the form of free seeds, or pesticides or equipment. Almost all companies have a Code of Conduct, it is just a formality, counters Tara Scally, Campaign Coordinator for the Dutch branch of the Clean Clothes Campaign 7 (CCC). In the case of Primark, and others, I dare say, it's about time, says Orsola de Castro, Founder and Creative Director at Fashion Revolution 2 and Esthetica. This strategy is pursued by companies selling affordable products across all sectors. Full-year operating profits at Primark are expected to be ahead of last year's 1bn, as the retail chain benefited from "a significant reduction in store labour costs and lower store operating. The value retailer said it was both quite shocked and moved by the results of FNV online survey and noted that it has been working for several months to launch its workers council. This means we get the savings from buying in bulk, explains Stewart. Acting as an agent and intermediary between banks and customers, Geosansar and Primark have aided workers in opening a bank account for the first time. This short film shows how I:CO works with retailers to initiate clothing recycling drives in store, and encourages consumers to be more mindful with their unwanted textiles. For a number of years, weve been working closely with industry partners sharing information about where Primark products are made. Introduction to Operations and Supply Chain Management (Cecil C. Bozarth; Robert B. Handfield) Signals and Systems (Simon S. Haykin; Barry Van Veen) . After reaching out to the shoppers who found these letters and labels and conducting its own research, Primark claimed the distress calls were all part of an elaborate hoax looking to sully its name. That's why we work in partnership with global and local experts to help deliver change. The product strategy and mix in Primark marketing strategy can be explained as follows: Primark is one of the leading retailer brands having multi-brand products available. And audited 2008 ) demonstrates the various stages and what retailers are doing certain... A fashion expert within its Code of Conduct with the Fair Wear Foundation Code were reduced 19.2... Over time and having the of Primark consisted of the many places that Primark gets its from... The integrity of them been said to be the biggest company across Europe with Fair Wear Foundation.... 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