Britain Off Europe: Luxury Goods Plummeted 50% British Brands Benefit

Britain divorced from EU

The long-term impact of the industry is still unknown, but the short-term impact is immediate.

Retail sales data tracking agency Edited said that online sales of global luxury goods fell by 48% over the same period last year compared with the same period last year, meaning that China's economy is slowing down, the demand for luxury goods has weakened, the sales of Hong Kong and Macao have continued to retrogress, terrorism has enveloped Europe, resulting in passenger dropping and the strength of the dollar has weakened the multiple effects of local sales, such as luxury goods. Ten

It will add insult to injury.

European luxury giants have suffered a lot, especially Louis Vuitton.

The most hit, after the EU referendum in June 24th -7 3 days, the brand price sales fell 73%, Kering SA (KER.PA) Kai Yun group's Bottega Veneta Bao family, Yves Saint Laurent Saint Laurent and Balenciaga barista also recorded a huge decline of 81%, 68% and 55%.

Edited co founder Julia Fowler said that the British referendum was closely related to the broader recession of the industry, because the ten day luxury sale of the referendum dropped significantly by 60% over the first ten days of the referendum. She pointed out that this shows that consumers' ignorance of the future has made their consumer behavior cautious, while retailers' attitudes towards promotional discounts are more firm.

However, the British referendum has also led to an obvious short-term winner - some British retailers who are benefiting from the rapid devaluation of the pound.

Take Burberry Group PLC (BRBY.L), Bo Bo Li as an example, the brand achieved an increase of 50% online.

Luxury electric business Matchesfashion.com increased by 90%, Dolce & Gabbana, djiapbana, Gucci Gucci and Moncler had the highest selling rate on the website, of which the most powerful Gucci Gucci sales in recent years had increased by 154%.

London luxury department store Liberty also recorded a 49% increase.

Britain is the world's sixth largest luxury consumer market, with sales of 15 billion 500 million euros last year.

The pound and the US dollar have reached a 31 year low today. Edouard Meylan, CEO of H. Moser & Cie., is expected to have a large number of Chinese and Middle Eastern tourists flocking to the UK because of rising purchasing power.

However, the potential promotion of tourism to the luxury industry in the UK will not be realized until more tourists get their visas and travel to the UK to "buy, buy and buy", and Britain's upper position is at the cost of currency appreciation and the already depressed Hong Kong and Macao markets.

On the other hand, luxury brands in France and Italy can take advantage of the negative effect of the UK's brand on the European market, and analysts estimate that these brands are likely to raise the price of the British market.

Tod 's SpA (TOD.MI) and Yoox Net-a-Porter Group SpA (YNAP.MI) have already indicated that Britain has little influence on Europe.

Enrico Cavatorta Cavatorta, chief financial officer and chief business officer of Yoox Net-a-Porter Group SpA, pointed out today that a weaker pound may raise profits slightly, but it will dilute income growth.

But for the 10% sale of Burberry Group PLC PLC Bob, from the British home market, the pound's depreciation of 10% means that its pre tax profits will increase by up to 90 million pounds.