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I'm not sure if this would belong here or in the Fashion forum, but it's pretty geographically specific. So here we are :
Why on earth are clothes so expensive in Europe? They're obscenely expensive. Even accounting for quality, materials, etc., they're at least twice as expensive as in North America. What is the reason? Tariffs? Taxes? EU restrictions? I just don't understand this. Why do Europeans accept this? I'm genuinely curious.
Well, one reason is that the US produces/sells a lot of cr@p. Good-quality, well-designed clothes in the US are also twice as expensive as most US clothes, or more. Designer labels cost many times more than the cheap stuff you see in most stores.
I've heard that the Swedish label H & M is one of Europe's bargain-basement labels, price-wise. People say the items don't last longer than a season or a year, too. So you get what you pay for.
I don't know, but what you're saying is the truth. When my husband's brother and sister-in-law visit us from Germany (usually every summer), they buy their kids' entire school wardrobes for the coming year, as well as some clothing for themselves, because it's so much cheaper in the US.
Well, one reason is that the US produces/sells a lot of cr@p. Good-quality, well-designed clothes in the US are also twice as expensive as most US clothes, or more. Designer labels cost many times more than the cheap stuff you see in most stores.
I've heard that the Swedish label H & M is one of Europe's bargain-basement labels, price-wise. People say the items don't last longer than a season or a year, too. So you get what you pay for.
Ok, I'm not just comparing apples to oranges, here: online H&M has the exact same dress sold on their France website for 14,99 Euros, and $14.99 on their Canadian website--with the exchange rate, that's half the price in Canada. It's cheaper for someone in France to order clothing online from Canada and have it mailed to them, than to get it from a shop in France. (Edited: I just noticed that you can't order online from H&M Canada's website. Pity--they might receive a lot of European orders! )
France's Monoprix sells low-quality clothes for twice what someone could pay for similar articles in "fast fashion" shops in Canada, such as H&M, Forever 21, etc. The better-quality clothing--let's say a mid-price brand like Levi's--easily sells for double the price in Europe as in North America. That's just denim. Check out the prices online at Galeries Lafayette, versus what you'd pay for identical articles in North America. Obscene differences. Why?
Ok, I'm not just comparing apples to oranges, here: online H&M has the exact same dress sold on their France website for 14,99 Euros, and $14.99 on their Canadian website--with the exchange rate, that's half the price in Canada. It's cheaper for someone in France to order clothing online from Canada and have it mailed to them, than to get it from a shop in France.
France's Monoprix sells low-quality clothes for twice what someone could pay for similar articles in "fast fashion" shops in Canada, such as H&M, Forever 21, etc. The better-quality clothing--let's say a mid-price brand like Levi's--easily sells for double the price in Europe as in North America. That's just denim. Check out the prices online at Galeries Lafayette, versus what you'd pay for identical articles in North America. Obscene differences. Why?
Could be the tax structure over there, in part?
BTW, I've found clothes to be much cheaper in Canada than in the US. Of course, it depends on the exchange rate, but still--when things go on "sale" in Canada, the price reductions seem much greater than in the US. Generally speaking.
Ok, I'm not just comparing apples to oranges, here: online H&M has the exact same dress sold on their France website for 14,99 Euros, and $14.99 on their Canadian website--with the exchange rate, that's half the price in Canada.
The French price already includes VAT, the Canadian price doesn't. Also, consider that the exchange rate dropped significantly over the last couple of months/years. So, using your little example:
17.6882 CAD in Euros using an exchange rate of 0.670408734 (Sep 2, 2015): 11.8583238 Euros
Back in April the exchange rate was significantly better (0.7614064): 13.4679086845 Euros
Back in 2012 the exchange rate was at 0.82267: 14.551551494 Euros (basically the same price as in Europe)
As you can see, the lower prices are the product of the VAT not being displayed on Canadian websites and a pretty ****ty euro/CAD exchange rate at the moment.
It's not just clothing, other categories too, food, household, electronic etc. Sales tax (VAT) is biggest most obvious reason, but there are others too.
An item priced at $100 will cost you $105-$108 approx. An item priced at E150 includes an average VAT of 22% and means the retailer pockets E125 approx. Other reasons include higher costs associated with employment, and terminating employees. Because it's more densely populated real estate costs are significantly higher, maybe 2-3 times higher.
Also, because of the segmentation of the different national markets due to language and cultural differences, the same economies of scale that are available in the US are not achievable in the EU. E.G. there are only so many items in an obscure color that need to have their care labels, content details, operating instructions, produced in Swedish, Bulgarian etc.
Because economies of scale are not as easily achievable, there is greater emphasis on an alternative profit strategy, increased pricing due to real or perceived exclusivity.
I agree. Clothing in the USA is cheaper, but that cheap stuff lack on quality. If you want top fashion labels, made from the best fabrics, quality finish, superior fit, European fashion collection, and classy look - you pay for all that.
But you could shop in outlets, look for seasonal bargains, settle for less known brands or designer knockoffs, and you pay much, much less.
On the travel sites you can often find a section with fashion advice: how to avoid looking like an American. There is surely reason for that.
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