Business

Brazil is the fourth most expensive country to buy Zara's products

In 2019, the costs for Brazilians were twice as much as in the US, according to the latest Zara Index

Zara's physical store
Brazil is one of Zara's most expensive markets. Photo: ShutterStock
  • The same Zara’s products could be 103% most expensive in Brazil than in the US
  • The three main reasons for that difference are the rise of the dollar, tax burden, and logistics, according to one of the analysts responsible for Zara Índex 2020
  • Still, the brand has more than 50 physical stores in Brazil and launched its e-commerce in 2019
  • Mexico also figures in the top 10 most expensive markets for buying Zara products

Even with more than 50 physical stores in Brazil, the local e-commerce launched in 2019 and undeniable popularity among the Brazilians, the country has Zara‘s fourth-highest prices, according to the Zara Index 2020 edition published by BTG Pactual. The report makes an annual analysis of the retailer prices in the purchase of the same products in 40 different countries considering not only currency aspects but also the living expenses’ differences among each one of them. 

READ ALSO: New ecommerce in Brazil was the key factor for the increase of Zara’s profit worldwide in 2019

In an interview for the Brazilian media outlet Exame, Luiz Guanais, one of the analysts responsible for the report, revealed that are three main reasons for Zara’s expensive costs in Brazil: the rise of the dollar, the complex Brazilian tax burden, and the logistics in the country. These pillars explain not only the 2019’s results, but also why the country traditionally figures among the most expensive on the list. 

Still, the dollar rising had a most relevant impact in 2019 in relation to the previous year. In 2018, Zara’s prices in Brazil were 18% more expensive in the US, but last year this difference jumped to 103%. 

READ ALSO: How to Thrive in Mexico’s Fashion Industry? Lessons Taught by SHEIN

In Latin America, Mexico faces similar challenges with international fashion brands such as Zara. The Spanish retailer is 85% most expensive for Mexicans than in the US and the country is also on the top 10 in the list of Zara’s highest prices.