When I first read about international pricing, I thought the pricing of products would not differ much between countries. I had assumed that the price difference would be the result of just shipping costs or import/export costs and the like. So, when I stumbled across this article about Zara’s international pricing strategy, I was quite surprised by the stark difference in prices.
From a study that was conducted by Morgan Stanley and AlphaWise, Zara’s selling prices in South Korea and the US are double what they are in Spain. Zara was able to sell its products at a much higher cost in certain areas due to the market research that they have done. They had paid attention to what consumers in each country were willing to pay based on the consumers’ income. Zara’s flexibility and innovation within the fast fashion industry to meet their consumer’s demand has brought in massive net profits.
After learning about the stark difference in pricing at Zara between countries, I definitely will be stocking up on Zara clothing whenever I finally take that vacation to Spain.