47 Country Zara Survey: Buying Clothes Is The Most Expensive In Brazil

Brazil investment bank BTG Pactual recently released the "2020 Zara index" (Zara 2020) survey report, analyzed and compared the selling price of 12 kinds of commodities of Spain's famous fashion brand (Zara) in 47 countries (or regions) of the world, and the results showed that the highest price of buying Zara clothing in Brazil.
　 Brazil Zara sells high
Brazil UOL website reported that the products included jeans, T-shirts and leather jackets and other fashion items. According to statistics, buying a set of (12) Zara clothing in Brazil's brand chain stores costs US $644.7 (about 2633 of the black Olympic Games), which is higher than that of the other 46 countries (or regions).
Data show that buying a suit in the United States costs US $606.8 (about 2478 of the black Olympic Games); Norway costs US $585.8 (about 2392 of the black Olympic Games); the cost of clothing in Columbia is US $494 (about 2017 black o); Spain costs US $396.5 (about 1619).
Although the overall cost is high, the price of some single garments in Brazil is lower than that in other countries (or regions). For example, buying a pair of jeans at Zara store in Brazil costs US $49 (about 200 of the black Olympic Games), which is lower than the US (49.9 US dollars, about 204 black Olympic) and Thailand (49.1 US dollars, or 201 black Olympic). In addition, the Brazil Zara shop's conjoined clothes (51.5 US dollars, about 211 of the black Olympic Games) and sweaters (73.6 dollars, or 301 of the Olympic Games) are also lower than most other countries (or regions).
In the single item clothing, the Brazil Zara basic T-shirt is priced at 29.3 US dollars (about 120 of the black Olympic Games), which is more expensive than all other countries (or regions). The lowest price of the basic T-shirt is Estonia (6.6 US dollars, about 27 of the black Olympic Games) and Hungary (6.7 US dollars, or 29 of the Olympic Games).
　　 Why is Brazil selling at a high price?
The results show that one of the factors that affect prices is the change in the local currency to the US dollar and the geographical distance between Spain and most of the garment factories. According to statistics, Zara has a total of 7235 garment processing factories worldwide, of which more than half (57%) are located in the neighbouring areas of Spain. In far away Brazil and Argentina, there are only 34 Zara garment factories.
The research also shows that Brazil's complex social tax system, high tax rate, ineffective supervision and logistical obstacles are the main reasons for impeding the development of foreign enterprises and affecting commodity prices. The research report shows: "although we believe that a simpler and cheaper tax system can motivate foreign retail enterprises to expand or expand the business market in Brazil, the dispersion of Brazil's clothing industry is a big challenge for enterprises without the supply chain structure."
In addition, experts pointed out that property loss risk and store rentals are also important factors affecting commodity prices. "For the shops opened in Brazil, the value of burglary, robbery and accident risk is added to commodity prices," said Ulysses Reis, Professor of MBA of the Ratu Leo Vargas Foundation (FGV). And most of the Zara shops in Brazil are in shopping centers, and shopping centers charge a lot more rent than foreign ones, which greatly affect the final pricing of store products.