Brazil is the world's most expensive country to shop at Zara (2024)

Shopping at Zara is more expensive in Brazil than in any other country,reveals the fourth edition of an annual study by Brazilian investment bankBTG Pactual. Titled “Zara Index”, the research takes the price of 12 Zaraitems across 44 countries, then converts local currencies to US dollars andcompares them to the prices offered in the United States. Brazilians pay onaverage 18 percent more than Americans for the same clothing items at Zara.

Consumers looking to buy Zara items for the lowest possible pricesshould head to the retailer’s home country, Spain, or its neighborPortugal, where prices are 36 percent lower than in the United States.

But what makes Brazil so expensive? To start, the country is far awayfrom where most of Zara’s clothes are made. Only 1.2 percent of Zara’sfactories are located in Brazil and Argentina. Most of the brand’sproduction (57 percent) takes place in Spain, Portugal, Morocco and Turkey.According to BTG, more than 40 percent of Zara’s clothing sold in Brazilwas produced locally ten years ago, but the brand’s parent company,Inditex, decided to focus on imports after having problems with Braziliansuppliers.

Secondly, one can blame Brazil’s complex tax structure, with heavyimport duties and significant differences between the country’s 26 states.Last but not least, logistics: Brazil is a country of continentalproportions which is heavily dependent on roads -- railways are practicallynon-existent. Last year, the country invested only 1,4 percent of its GDPin infrastructure.

Brazil is the world's most expensive country to shop at Zara (2024)

FAQs

Brazil is the world's most expensive country to shop at Zara? ›

Brazilians pay on average 18 percent more than Americans for the same clothing items at Zara. Consumers looking to buy Zara items for the lowest possible prices should head to the retailer's home country, Spain, or its neighbor Portugal, where prices are 36 percent lower than in the United States.

Is Zara expensive in Brazil? ›

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.

Is Zara popular in Brazil? ›

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.

What country is Zara cheapest in? ›

As it turns out, shoppers in Spain are getting the lowest price on the products, while those in Japan and the US are paying the highest. One example they give is a pair of leather boots that cost $156 in Spain, $227 in Britain and a whopping $279 in America.

Are clothes in Brazil expensive? ›

Clothing, electronics and manufactured items can be very expensive, with jeans, shoes and sports clothing likely to cost more than in the US.

Is Brazil cheap for an American? ›

Is Brazil Expensive for Tourists? Quick Answer: Yes – Brazil is amongst the top 5 most expensive countries in Latin America – so you'll need to adjust your budget to be able to extend your stay here.

Why is going to Brazil so expensive? ›

Brazil has lost its competitive edge and it is not because of back-to-back years of recession either. It's because of corruption, ridiculously high taxes, and logistics bottlenecks that make Brazil what it is: one of the most costly countries to do business in. It surely is one of the most costly countries to fly to.

Which country is best to buy Zara? ›

Consumers looking to buy Zara items for the lowest possible prices should head to the retailer's home country, Spain, or its neighbor Portugal, where prices are 36 percent lower than in the United States. But what makes Brazil so expensive? To start, the country is far away from where most of Zara's clothes are made.

What clothing is Brazil known for? ›

In general, Brazilians wear clothing that's comfortable yet richly colored and sophisticated. However, there are some preferred clothing types depending on region. For example, those living in the southern plains, a ranching area, wear gaucho-type clothing: baggy pants, or bombachas; cowboy hats and cowboy boots.

What countries is Zara most popular in? ›

As of January 2023, Spain, France and Italy were the European countries with the highest number of Zara stores as shown in this statistic. Besides Europe, Zara has a solid presence in the Middle East and Africa as well.

Why is Zara so expensive in USA? ›

Ever wondered why ZARA items in the US are pricier than in other countries, even though they're the same products? Well, surprise, surprise! ZARA's pricing strategy is based on your location — worldwide pricing strategy, they call it. Their international clothing retailers have different pricing standards.

Is Zara more expensive than H&M? ›

ZARA's premium collection stands at a lower average price than H&M, at 83 percent more expensive than its regular collection, which itself has a higher average price than H&M's regular collection. With regards to maximum prices, ZARA holds a higher price point for both its regular and premium collections than H&M.

What is the equivalent of Zara in the US? ›

Uniqlo. If you love Zara for its basics, you'll also love shopping at Uniqlo. Known for its well-made staple clothing pieces, Uniqlo is a great place to stock up on all your basics like tees, tanks, jeans, sweaters, and more.

Is Brazil cheap for shopping? ›

Although Brazil is not a particularly cheap country, its great diversity will make shopping enjoyable. Some cities such as Rio de Janeiro, Salvador de Bahia and São Paulo have large avenues and shopping centers.

What is cheaper in Brazil? ›

Women's shoes tend to be a lot cheaper in Brazil than in comparison to other countries. Especially ballet shoes, trainers, sandals and leather shoes. Havaiana Flip-flops are a unique Brazilian product.

How much is a pair of jeans in Brazil? ›

From 2014 to 2019, the average cost of a pair of Levis Jeans (model 501 or similar) in São Paulo, Brazil showed an overall downward trend. In 2019, the cost of a pair of Levis Jeans in São Paulo amounted to approximately 61.7 U.S. dollars, only 53 percent of the average cost registered in 2014.

What is the most popular clothing store in Brazil? ›

shein.com

What is the most expensive place in Brazil? ›

Considered and recognized by many as one of the most luxurious and exclusive neighborhoods in Brazil, Leblon, located in the southern zone of Rio de Janeiro, is famous for its sophisticated gastronomy, designer stores, and for being home to some of the most expensive properties per square meter in the country.

What is the best brand in Brazil? ›

Leading Brazilian brands 2022, by brand value

In 2022, São Paulo-based bank Itaú was the most valuable Brazilian brand, with a brand value of nearly 44.4 billion Brazilian reals. Another bank, Bradesco, headquartered in the city of Osasco, ranked second with a brand value of over 28.6 billion reals.

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