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How Zara Keeps Prices Low While Luxury Brands Hike
Episode 43 of Pricing Power Podcast digs into Zara's counterintuitive pricing strategy. While most apparel brands have raised prices 15-25% since 2022, Zara has held its average unit price nearly flat — and grown revenue 18% to €38.6 billion. Lucas and Luna unpack how Inditex uses a three-week design-to-shelf cycle, 85% full-price sell-through, and a deliberate lack of season-end markdowns to maintain perceived value without premium pricing. They compare Zara's approach to H&M and Uniqlo, and discuss why Inditex spends only 0.3% of revenue on advertising versus 6% for competitors…
The skinny
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