Overseas tourists, especially those from China are becoming more interested in buying jewellery and other luxury items in the U.K., amid a weaker currency.
The situation stemmed from the country’s EU referendum vote in June, when it ultimately decided to cut its ties with the union. As a result, the British pound suffered a steep decline in value that led to a drop in prices of luxury items.
While the drop in currency value has presented its own negative implications, it appears to be a win-win for jewellery manufacturers like JewelCast Ltd and foreign tourists. Some Chinese travellers have snagged designer-made apparel due to their cheaper cost compared to buying them back home.
A Deloitte survey revealed that the UK is the most affordable market for luxury goods compared with the US, China, and France. More than 60 percent of for-sale British products are cheaper than the three other countries.
This fact alone has attracted a great deal of Chinese shoppers to purchase as many products as they can while prices remain low. The surge in luxury shoppers from China has inevitably propelled the number of airline flights booked during the third quarter of 2016, according to Visit Britain.
The tourism agency said that booked flights in the three-month period were up 24 percent on a year-over-year basis.
Not Just from China
U.S. shoppers are also amongst other offshore tourists that seem to see a giant “sale” sign stamped across the country’s high-end stores. Middle Eastern shoppers have also spent a considerable amount in buying cheaper luxury goods.
Given that London is already a tourist city, the plunging value of the British pound has further contributed to a noticeable increase in foot traffic.
However, it may not take long before the shopping bonanza ends when UK luxury-product manufacturers decide to adjust their price tags for product to offset a devalued currency.