26.12.2011                      30.Kislev. 5772                       Channuka 6                      Rosch Chodesch 1

Preisniveau:

How long you need to work to buy a pair of high-heel shoes in Israel

For a pair of closed toe patent leatherette pumps from Forever 21, Israelis pay NIS 72.90, which is 3.19 hours work.

The launch of the American fashion brand, Forever 21, in Israel last week was accompanied by much excitement. The chain, known for its low prices, opened its first store in the Azrieli Mall in Tel Aviv with a promise of prices similar to those in the rest of the world. The company said its pricing policy in Israel was based on a simple calculation – the dollar price in the United States, before taxes, plus $1.50, and all that multiplied by four, based on an exchange rate of NIS 4 per dollar.
Many foreign chains have come to Israel and presented price differences of tens of percent more than in the United States, claiming high shipping and importation costs are responsible. But Forever 21 painted things in a slightly different way; after all, everything comes from China. It is true that there are many additional costs and considerations such as market size and wages in each country, but in the end it depends in the profit margin you want, Lawrence (Larry ) Meyer, CFO and senior vice president, told TheMarker last week in an interview. He said the chains must take into account that consumers are paying much more attention to the price over the past three years than in the past….