Rapid growth as Kiwis cotton on
Cotton on is a growth story, starting in New Zealand 2005 and reaching 80 stores, it has 600 stores worldwide. They claim its success is due to economies of scale and a business which is highly systemised. It also clusters its stores to allow bargining with landlords.
Coriolis Research director Tim Morris said one of the drivers of Cotton On’s success was its value for money.
“It’s not just cheap stuff. I think it doesn’t look downmarket. Just as an observation of their stores and consumers, it is cheap without looking trashy. There is nothing unique about their model, they are just moving clothing through as styles change. It’s a sign of a good retailer to watch the market closely. They’re constantly bringing in new products.
“It is designed out of Australia so stylistically it is going to be closer to the New Zealand ideal than, say, some of the American or European-derived fashions.”
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