Zara's Pricing Conundrum Posted on 24 Aug 02:35 , 0 comments

One of the most challenging tasks any retailer, large or small, will face is pricing. If you aim too low, no one will take you seriously and your brand will suffer. On the other hand, premium pricing is reserved for the well-established luxury brand, and if you're neither well-known nor luxurious you're just asking for trouble. 

Zara is facing a dilemma with their pricing. It seems that U.S. customers are being charged quite a bit more than U.K. customers for the exact same items and although they've denied it every step of the way it calls into question price sensitivity. Zara is known for stylish and trendy fashion at a reasonable price, one which U.S. shoppers have been willing to pay without question for some time. How will their customers feel about being purposely overcharged if it is indeed the case? I think this will be an interesting situation to follow for sure.