Since Britain voted to leave the European Union earlier this year the pound has plunged against the dollar by more than 17 percent. And while that might not be the best news for the state of our economy, it seems there is a silver lining for fashion fans. According to new research from Deloitte, replica designer handbags and other big-name additions to your wardrobe now cost less in London (in dollar terms) than anywhere else in the world.
Picking up one of Hermes’s iconic monogrammed Speedy 30 bags will currently set you back £164 or $180 (as of October 7), compared to €160 or $185 in Paris, $197 in New York or $185) in Beijing.
A study showed that 64 percent of luxury products are now cheapest in the UK. Balenciaga’s Foulard fringe dress will set you back the equivalent of $131, compared to $156 in Paris, $166 in China and $176 in the United States.
Speaking to the BBC, Deloitte’s Fashion and Luxury Lead Nick Pope revealed, the trend in luxury pricing in the UK is being driven mainly by the depression on the sterling – thus making the same item more affordable in the UK market than in any other major luxury market.
So, if you’ve been biding your time waiting to make that big designer purchase, it’s certainly worth taking the plunge before the brands catch on and crank up their prices accordingly. Luxury brands are usually and rightly cautious about en masse pricing adjustments, explains Pope. But if over six to 12 months this sterling position becomes the new normal and hence margins are under continued pressure – I would expect more brands to respond with pricing adjustments.