December 25, 2023 – 6:00 PM – Economy
©
The prices of large retail chains such as Zara and Bershka in Morocco are often significantly higher than in Europe, which regularly leads to discussion.
It is not unusual for garments in Moroccan branches of these stores to be 50 to 70% more expensive than in some European countries. For example, a Zara coat that sells for around 150 euros in Spain costs 2,000 dirhams in Morocco, and Bershka shoes that cost 70 euros in Europe sell for 900 dirhams in Morocco.
Also read: Zara dress twice as expensive in Morocco
Industry experts point to several reasons for these price differences, with additional costs such as transportation, currency conversion, high rental prices and, above all, unfavorable tax policies being the main factors. Import duties have increased significantly in recent years, which has a direct impact on the final price for consumers. However, a planned revision in the 2024 budget law could ease this fiscal pressure.
“Since 2012, import duties for franchises have been 25%. But to encourage brands to source locally, the government decided to increase duties first to 30% and then to 40% in 2020. Many franchises chose to pass on this tax directly charge to consumers, which led to a drop in sales. The 2024 budget law will reduce these duties from 40% to 30%,” the report said.
Also read: Boss Zara exploits Moroccan workers
According to the government, this price difference is intended to favor local producers, but this explanation is qualified by sector professionals. Karim Tazi, founder of Marwa clothing stores, explains that brands target different segments of the market, from luxury to mass market. The price positioning of luxury brands, and therefore the final sales price to consumers, is a reflection of this positioning.
2023-12-25 17:00:00
#Zara #Bershka #prices #Morocco #expensive #Europe
