Why is Zara so cheap in Spain?

I'm curious to know, why is it that Zara, a popular international fashion retailer, seems to offer such affordable prices in Spain compared to other countries? Could it be due to their manufacturing facilities being located nearby, allowing for cost-effective production? Or is it a strategic pricing decision to cater to the local market? I'd love to gain a deeper understanding of the factors behind Zara's low prices in Spain.