British luxury goods sales to surpass $88 billion by 2019
Sales of British luxury good could nearly double to as much as 57 billion pounds ($88 billion) by 2019, according to a report by Frontier Economics for British luxury association Walpole .
The new report comprises data on designer apparel, footwear, fine wines, spirits, accessories, jewelry, timepieces, high-end beauty, personal care and cars. Sales of these items may reach between 51.1 billion pounds and 57 billion pounds by 2019, compared with about 32.3 billion pounds in 2013.
The forecast comes after Burberry reported its weakest sales growth in two years. Luxury demand has slowed in China following a clampdown on graft, and policymakers there last month devalued the yuan by the most in two decades amid signs of decelerating economic growth. Analysts at Sanford C. Bernstein see the luxury industry growing about 5 percent a year at constant exchange through 2019.
Foreign shoppers are likely to continue to account for much of the demand for British luxury goods as more than 75% of sales came from overseas markets in 2013. The U.K. is losing 1.2 billion pounds of revenue annually as a result of the current visa system, Frontier Economics said.