Brexit has turned the U.K. into one the cheapest global luxury markets
With the Brexit vote weakening the British pound about 10 percent against the euro, Britain’s Luxury markets have become a tad more appealing for tourists worldwide. The plunge in the currency rate has worked in Britain’s favor, making it the cheapest luxury goods marketplace in the world, inevitably attracting a large tourist chunk to the country.
More often than not, luxury goods are sold at cheaper rates in their home countries as opposed to foreign markets. For Instance, a Burberry coat in UK would be sold off racks for 1,495 pounds with the same coat retailing at $2,639 in China. This and the emotional value of buying a brand off their home base has always made Europe a star shopping attraction for tourists. Following this analogy, luxury goods which were always sold at cheaper rates in Europe compared to other markets will be sold at further discounted prices in UK, thanks to Brexit!
The plunging value of the pound and recent attacks in France also make Britain a hot tourist magnet in the wake of Brexit. With 70 to 80 percent of luxury goods revenue in Europe being generated via tourists, the EU loyalists are bound to suffer with travelers flocking to UK. As per Luca Solca, Head of luxury goods for Exane BNP Paribas, UK is today at least 20 percent cheaper ,promising a huge sales boost for the country.