Britons Reduce Clothing Spending &Nbsp; Consumer Market Shrinks

In 2010, it was hard to get from

Heavy debt leads to regime change.

Britain's fiscal deficit reached 154 billion 700 million pounds in the 2009 to 2010 fiscal year, equivalent to 11% of gross domestic product, far exceeding the 3% ceiling set by the European Union, which can be said to remain high.

As a result of the lessons learned, the conservative and liberal democratic coalition government came to power in May this year, the main direction of economic policy in the struggle against the deficit. After careful planning, the British Chancellor of the exchequer George Osborn announced in October that the next few years the government will reduce the details of the budget of 83 billion pounds, this plan is called the British government after World War II to implement the most stringent tightening policy?

According to the plan, the budget of the British police will be reduced by 4% in the next four years, the defense budget will be reduced by 8%, the Ministry of justice's annual expenditure will be cut by 6%, and the diplomatic budget will be cut by 24%. In addition to the sharp cuts in government departments, the royal family's expenditure will also be greatly reduced. In addition, the social welfare expenditure has also been reduced by 7 billion pounds. The retirement age of the British will rise to 66 years by 2020, so that 5 billion pounds of pension will be saved every year.

From the students sitting in the classroom to the policemen patrolling the streets, the children from cradles to the pensionable old people, are all the British affected by the austerity plan?

The consumer market is shrinking.

The consumer market is also bleak? The first thing that will be affected is the real estate market. The data released by Nationwide, the UK's authoritative house price watchdog, show that housing prices have continued to decline since July this year. For consumers with low wallet prices, low housing prices can not arouse their desire to buy houses, and the cost of decoration and gardening is reduced by 1%.

In order to save money, the British, who had been eating out of the restaurant because of their poor cooking skills, had to go into the kitchen more frequently. According to a survey, 64% of British wage earners brought their own lunch with an unprecedented proportion. Every day after work, they brought 32 friends to a whiskey or black beer in the street pub, which is the most popular way of entertainment for Britons. But this wine can not be guaranteed. It is predicted that although the sales of beer in the world cup in South Africa has increased a lot, the consumption of alcohol in the UK is still down by 1.4% this year.

Compared with housing and catering, the impact of the clothing industry is not large at present. But in recent years, the price of commodities has skyrocketed in the international market, and the prices of raw materials such as cotton have also soared. Is this a rising cost for clothing and other consumer goods?

In addition, the British government will raise the consumption tax by 2.5 percentage points in January next year. In order to pfer costs, Next, one of the largest clothing retailers in Britain, has announced that the price of products will be increased by 5% to 8%? {page_break} in the first quarter of next year.

Angela, Ahrendt, CEO of luxury brand Burberry, did not make a clear decision. In the headquarters building on the river Thames in London, Ahrendt was in high spirits. The tall, blonde woman was like "fashion devil", black suit, narrow side glasses and a professional fan from top to bottom. Although the end of the year is coming, her face is not serious and fastidious, and smiles are hanging on the eyebrows at the corners of her eyes. Because Burberry's recent achievements are enough to make this business and fashion woman strong and happy?

In the last half of the fiscal year, Burberry, the famous British luxury brand, gained 49% profits and 129 million pre tax profits.

Ahrendt, of course, understands that the good momentum of the group is mainly attributable to the rapid growth of sales in emerging market countries such as China and Brazil, but not much to the British market in headquarters, even though it is the most characteristic brand in Britain. For some British companies such as Burberry, even though the British economy is still going to be as miserable as London's winter in the future, they have already dug into the sunny gold mines such as the Chinese market.