After UK decided to exit EU in June 2016, British Pound was falling heavily in July. Fashion industry of Britain got hit too. Tourists were having a gala time shopping for luxury goods. Eduardo Meylan, chief executive officer of Swiss watchmaker H. Moser & Cie was quoted telling Business of Fashion that
“I wouldn’t be surprised to see Chinese and Middle Eastern tourists flocking to the UK as their purchasing value has increased. People are ready to travel to get a 5 to 10 to 20 percent discount.“
In a recent research by Luca Solca, Head of Luxury goods at Exane BNP Paribas it has been found out that Britain is now the cheapest destination for luxury goods across the globe. She told BOF that “The Brexit vote has made the UK the cheapest market in the world for luxury goods,” and “A weak British pound will boost travel inflows to the UK, helping British luxury goods players like Burberry, Mulberry and Jimmy Choo.”
It is not clear yet whether luxury fashion goods companies are going to increase the price of their goods in UK to keep up with the weakened currency of the country. Europe has always been cheaper for Luxury Goods in comparison to USA & Asian countries. This can be seen as a good news for Britain in these unpredictable times when everything is in ambiguity about how and when they are going to exit the EU as this might prove to be attractive for the tourists. British Pound fell during August, which got a positive response from tourists, boosting the number of visitors during that time. This news has some serious potential to pull more tourists. Interestingly Bain & Company in its Spring report of 2015 on Global Luxury Market Good had noted tourism as the major driver of the global luxury industry’s performance.
Now you know where to buy that Burberry Trench!