- Angela Gonzalez-Rodriguez |
Aimed to show how Zara’s price strategy works in different markets, Morgan Stanley and research firm AlphaWise have conducted a survey comparing nearly 7,000 products from 14 sites in markets where Zara is present.
As reported by ‘El Confidencial’, Spain has been taken as the base or reference for comparison, with a score of 100. Besides, the study refers the exchange rate at the time of the study.
Zara’s prices in South Korea are 100 percent higher than in Spain
Although the price difference is lower within Europe, Zara’s clothing is priced between 22 percent and 24 percent higher in France, Italy and Germany, an increase that rises to 50 percent in Mexico and Britain.
Interestingly enough, the country where shopping at Zara is more expensive than elsewhere is South Korea (96 percent more expensive than in Spain) followed by the USA (92 percent) and China (78 percent).
In this vein, it is worth of remembering that Asia recorded the largest sales in 2014 for Inditex, accounting for 21.1 percent of the company’s total turnover as compared to 20.4 percent during the previous year.
Meanwhile, Spain accounted for 19 percent, as compared to 19.7 percent in 2013, while the rest of Europe accounted for 46 percent, as compared to 45.9 percent one year earlier. Latin America, meanwhile, generated 7.9 percent of sales.
‘El Confidencial’ highlights that, in the light of this research, Inditex not only is attentive to what consumers are willing to pay based on their income, but also to the characteristics of the culture of each of the markets where it is present.