“The Geopolitics of Retail: Zara Pricing Challenges and Market Adaptation”

2023-05-16 22:10:42

  • The experience revealed the pricing challenges faced by brands of retail.

  • The documentary exercise that was carried out in Zara stores in Mexico and Europe has already led to a youtuber to show what a store looks like Inditex In Venezuela.

  • These experiences are important challenges to face, taking into account how important the market becomes.

A trip around the world allowed a tiktoker Compare the prices of Zara in Zapopan with those of cities such as Rome, Paris and Madrid, discovering a surprise in price, which makes the Spanish capital the best place to buy Zara products. Inditex.

The experience documented by the woman accounts for the challenges that are imposed in geopolitical matters for stores when carrying out the distribution of products.

Hay studies As the “The State of Fashion 2023” where he realizes the challenges and opportunities for apparel, which is the segment in which Zara competes, to discover that 15 percent recognized that the margin and profit are the main challenge to face.

From Zapopan to Rome

Two thousand 299 pesos is the cost of a pink jacket thatand Chronicles Clasemedieras (@yo.flor.al, TikTok) found at Zara in Plaza Andares in Zapopan, Jalisco, before traveling to Rome where he also visited a Zara store in the Italian capital.

@yo.flor.al #zara #eurotrip #mexicanschingones #cronicasclasemedieras ♬ original sound – Middle class chronicles

Upon arriving in Rome, he finds the Inditex chain store and discovers a blue jacket, which he says was the same as the pink one he documented in Mexico, to discover that the price of the garment in the Italian city was 70 euros, something similar to the thousand 400 pesos. When going to Paris he found the same bag again at a price of 70 euros.

Zara Madrid, on Gran Via, was priced at 60 euros, ten euros less than in the cities of Rome and Paris and just over a thousand pesos less than the Zara Zapopan garment.

To pay, the tiktoker recommends paying with a credit card, since it ensures that the exchange rate will be less than the one paid with the exchange rate.

The comments after the testimony of the tiktoker They did not wait and followers like María Fernandez recognized that the extra cost of Zara garments in Mexico was due to elements such as the payment of taxes, transportation, tariffs, among others.

The comparison between two stores of the same brand accounts for the operation in retail and how it has to be adapted to each of the markets in which it operates. We discovered a great example of this in 2018 when the youtuber Gladys Seara posted a video titled “Visiting Zara and Bershka in Venezuela” is the title of the video he published and in which he documented what a Zara store in Venezuela looked like.

The lack of products on display for the date it was presented, as can be seen in the video, is justified by the youtuber because the shipments that the brand sends to this country take time to be carried out, among other things, due to the high state regulation for the entry of these products and brands, so even as soon as they arrive to stock the store, they run out, leaving with barely open curtains the premises that Inditex have in this country.

This experience that is lived at the point of sale and leads consumers to document it, as part of an exercise to show the very different experience that is lived in each market, makes us think about the impact that geopolitics has on the retail.

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