If The Pound Continues To Fall, What Will The UK Price Go?

If the pound continues to plunge, where will British prices go? According to DDT's latest survey, the continued weakness of the pound has made Britain the world's largest.

The lowest price countries, since the British voted to leave the European Union in June, ended Friday as the pound fell by more than 17%, a three year low.

London has become a new destination for luxury consumers, as the pound slid to a new low.

The Louis Vuitton bag that consumers dream of is welcoming the arrival of overseas tourists at the lowest price in the world.

According to research, the Louis Vuitton classic Speedy handbag sells for 645 pounds in London, that is, 802 dollars, the French area sells for 870 dollars, the US price is 970 dollars, and China is as high as 1115 dollars.

The price of Balenciaga tassel dress in the UK has dropped to the lowest level in the world, only 1312 US dollars. Other regions, such as France, the United States and China, are priced at US $1560 or more.

The sharp drop in the pound led to a surge in passenger traffic. Official figures show that in July alone, the number of overseas visitors in the UK reached 3 million 800 thousand, and tourists recorded a total of 2 billion 500 million pounds in total British consumption.

duty-free

The company's global blue Alliance said that due to the boom in tourism in Britain in August, the just concluded National Day golden week has played a role in boosting tourism and Luxury Retailing in the UK.

It is reported that in August this year, the total amount of duty-free shopping in the United Kingdom increased by 37% over the same period last year. Gordon Clark, general manager of global blue union UK and Ireland, pointed out: "due to the exchange rate effect of the European referendum, more national tourists will plan to travel to the United Kingdom to benefit more British retailers.

Britain is the most important destination for Chinese tourists to travel to Europe. We expect that tourism will continue the prosperity of August in October.

After the referendum was removed from Europe, the data of the UK Tourism Bureau also showed that during the 10-12 months of this year, the rate of travel booking in the United Kingdom increased. The number of visitors from the United States increased by 6% over the same period last year, while the India area increased by 11% over the same period last year, while the travel booking rate in the Chinese region was 24%.

It is understood that the price of China's tour group to the United Kingdom has been cut by 20% after the departure of Europe. Obviously, low price is a key to attract high-end tourists to the UK.

Patricia Yates, VisitBritain's chief strategy officer, said: "when calculating the exchange rate, passengers can find that their currencies can be exchanged for more pounds, and they will naturally choose to travel to the United Kingdom."

In addition, according to a rebate service data provided by UBS, overseas spending on tax rebates in the UK increased by 36% over last year, of which London Heathrow luxury sales surged by 16.6% since July.

Sales of jewellery and watches in July also increased by 16.6% over the same period last year, according to statistics from the British Bureau of statistics.

Compared with the rising trend in Britain, luxury consumption in other parts of Europe is still in the doldrums.

Affected by successive terrorist attacks, the purchase of similar commodities in France dropped by nearly 20% compared with the same period last year, and Italy also experienced a 11% decline.

In the survey of luxury goods consumption in China in 2016 statistics of L2, China is the most expensive area in the world. Only 29% of the luxury brands in China are less than 15% in average selling price and overseas price.

After the sharp drop in sterling exchange rate, the price difference between Burberry and China in the UK and the UK was as high as 37%.

According to statistics, nearly 64% of British luxury goods prices are lower than the rest of the world.

In order to make up for the bad profit caused by the pound's decline, some commodity prices in Britain have started to rise.

In the early days of Europe, most luxury brands did not adjust the UK price in the short term. For example, Burberry CEO Christopher Bailey had made it clear that at least one year, Burberry did not adjust the British regional price plan.

At present, the collapse of the pound is leading to the revival of grey areas such as purchasing agents. Even at the beginning of the year, the Chinese customs strengthened the inspection and taxation of import and export luxury goods, but the huge price difference attracted many people to take risks.

Myf Ryan, chief marketing officer of the European and British district of Westfield group, favored by Chinese tourists, said that after the British referendum was over, Chinese tourists bought in the UK.

The number of brand products increased significantly, with an average purchase of 10 items per person, two times the same period last year.

As consumers in other parts of the world choose to travel to the UK, luxury brands have to reconsider measures.

In response to the question of whether luxury brands will adjust the price in the UK, a spokeswoman for the global luxury giant LVMH group, which owns many brands such as Louis Vuitton, Celine and Fendi, declined to comment. However, other luxury brands such as Chanel have already raised 10% of their products in the UK since they left Europe in July, and the recent hot Gucci has also been priced up by 10%.