“Capital” reveals the secrets of Kiabi’s low prices

Many are unaware of this and would bet on H&M or Zara, but Kiabi is indeed the largest clothing seller in France. With 340 stores that cater to the whole family, the brand sells 300 million clothes per year for a turnover of nearly two billion euros. “Capitaltakes us behind the scenes of this success story, this Sunday August 28 at 9:10 p.m. on M6. The opportunity to learn more about the very competitive prices that the brand practices.

A garment sold 7.7 euros on average

Overall, the average price of a garment sold at Kiabi is 7.7 euros. The secret ? Direction Lille where eight designers and ten stylists work for the brand to develop the future collection, while respecting a price list. Thus, to comply with it, it will be decided not to add pockets to a sweatshirt so as not to increase the price. On the supplier side too, economy is in order. If, until now, 85% of the brand’s clothes were made in Asia, the increase in the cost of transport (multiplied by five in two years) leads the brand to reorient itself towards Turkey. As for the increase in raw materials (+15% for cotton present in 7 out of 10 clothes offered on the shelves), the brand intervenes right up to the choice of thread in the manufacture of the jeans in an attempt to reduce the impact.

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But that’s not all. If a location in a commercial area ensures low rent, the brand maintains its low prices thanks, among other things, to a tailor-made replenishment of stores to limit unsold stock. They amount to 1.3% at Kiabi against 5% in the rest of the sector. However, the competition is getting tougher. Don’t Call Me Jennyfer attracts teenage customers through social networks where the brand is particularly active. Not to mention sites that sell clothes at low prices like Shein, and the Vinted app for second-hand clothes. Kiabi is now trying to deal with this by collaborating with influencers and developing corners dedicated to second-hand clothing.

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Following this report, “Capital” will also offer another entitled: “Discounters and destockers: how did they become the kings of commercial areas? “.