UK Is Now World's Cheapest Luxury Market
BY Sim Wie Boon | Aug 4, 2016 | Fashion
Looking to ball out on luxe goods but ain't got the pockets to rock it? Well, if you're staying or heading to the UK, there might be some good news in store for you.
According to Business of Fashion, UK's decision to leave the EU has pushed the value of the pound down by 10 percent against the euro, subsequently making the country the world's cheapest luxury goods market. Researchers noted that this will most likely help stabalise the British economy and could result in a tourist spending boom in the UK.
Head of luxury goods at Exane BNP Paribas, Luca Solca said that the Brexit vote has made UK the cheapest market in the world for luxury goods and the weak British pound will boost travel inflows to the UK thus helping British luxury goods labels like Burberry, Mulberry and Jimmy Choo.
Luxury goods sold in Europe are commonly known to be amongst the cheapest in the world, costing less than in US and especially Asia. A Burberry trench coat retails at GBP 1,495 or about USD 1,995 at current exchange but in China, the same coat is priced 32 percent higher at JPY 17,500.00 or about USD 2,639.
In fact, luxury yachts sold in the UK are starting to draw eyes from around the world as prices for these yachts are falling due to the weakening British pound. Forbes reported that while a 2014 Princess 98 Fly listed for GBP 7.5 million could have sold to an US buyer in on June for USD 11.1 million. After Brexit, the price in US dollars was USD 9.95 million.