Inditex, the group behind Zara, Zara Home, Bershka, Massimo Dutti, Oysho, Stradivarius, Pull & Bear and Uterqüe, is one of the world’s largest fashion retailer and a leading edge in the fast fashion industry with more than 6.000 stores in 86 countries. The founder, Amancio Ortega, is listed as the fourth richest man in the world according to the Bloomberg Billionaires list with an estimated fortune of $54,7 billion!
The group has more than 120.000 employees worldwide and Zara is the biggest and oldest brand of the group with 1.751 stores around the world (1.122 in Europe – 332 only in Spain – 65 stores in the UK, 45 in the US and 6 in Australia). Founded in 1975 in A Coruña, the brand makes more than 840 million garments a year (source: November, 2012). Opened its first store outside of Spain in December 1988 in Oporto, Portugal. The Inditex group leaves its rivals way behind in terms of stores around the globe. According to The New York Times in November, 2012, the Arcadia group (which owns TopShop, TopMan, Miss Selfridge, Evans, BHS, Burton Menswear, Dorothy Perkins, Outfit and Wallis) has about 3.000 stores worldwide; the Swedish H&M has 2.500 and Mango, also based in Spain, has 2.400 – while Inditex has 6.009 stores in total.
Zara’s success is the stock clothing in a limited quantity, they do not replace collections. If the stock is sold completely, there is no second chance to buy. That makes the consumers buy the garment right at the moment they see it, afraid they are not going to find it in another opportunity, not even waiting to go on sale. “With Zara, you know that if you don’t buy it, right then and there, within 11 days the entire stock will change. You buy it now or never. And because the prices are so low, you buy it now”, says Masoud Golsorkhi, the editor of the English magazine Tank (NYTimes, Nov 2012). Merchandise moves extremely quickly even by fast fashion standards – all stores worldwide receives deliveries of new clothes twice a week!
What many people do not know is that prices are different depending on the location of the store. Prices are usually cheaper in Europe, especially in Spain and more expensive in South America and Asia, for example. That allows Zara to make a bit more money from countries that are not so affected by the economic crisis. Besides, Zara factories are based in Spain and nearby locations as Portugal, Turkey and Morrocco, so new designs can get into store faster and costing less. The trendiest items are produced close to the headquarter therefore the production will not take more than 3 weeks to go straight to the shops. The rest of the collection is made in China, Bangladesh, Brazil and many other countries.
In certain countries, a garment can cost more than 100% as the same product found in Spain. The strategy makes Zara to maintain a high value in other countries, besides supporting people to buy in Spain. But is Zara way cheaper in Spain? Where are the best places to buy Zara products? I decided to separate some products from the new Spring collection to compare the price through Zara around the globe (only those countries with an online store – Brazil and Australia are not included on the list!). Check the list below – all the prices are in American dollars for the simplicity.
Based on the products shown in this post, you can see that the prices of some products from Zara Spain are up to 110% cheaper than the same product in Zara Russia, for example. Check the full list below with the average percentage of the price comparison between products in Spain and worldwide.
This quick research shows us that Zara products in the UK are at least 31,43% more expensive than in Spain or even 97,49% more expensive in Japan. According to the analysis, the countries with lower rates in comparison to Spain products are the United Kingdom, E.U. countries, United Statesand Mexico. The countries with the highest margins are Colombia, Russia and Japan.
So if you are a fashion addicted or you just like ZARA’s design I highly recommend to stock ZARA here!