After The British Retreat To Europe, Luxury Brands Began To Have A Headache For Pricing.

Recently, the tourists on the Bond Street in London have plenty of money - because they know here.

It's cheaper than anywhere else.

Sterling fell by 10% against the euro in June 23rd, the lowest in 31 years.

Take Mulberry as an example. Its average price is 812 dollars before the depreciation of the pound (about 5389.32 yuan), which is now only 797 yuan (about 5289.77 yuan).

Data show that the difference between Burberry and around 46%.

High street in Oxford

Selfridges found that the number of international tourists increased sharply after the referendum.

Patricia Yates, director of the UK tourism board, said when talking about Chinese tourists, "the number of people who recently came to consult or booked the trip increased by 20% over the same period last year."

"Tourists want to buy goods at a preferential price during the devaluation of the pound."

Philip Guarino, the director of the European Department of China's luxury goods consulting, said.

In June this year, the Bank of Paris (ExaneBNPParibas) and DDT jointly used the BenchMarque global luxury pricing tool, and released quarterly global luxury goods cross-border price differentials and pricing trends.

Data show that the price of luxury goods in China is 20% higher than the global average price, while Italy is 17% cheaper than the global average price. The price of luxury goods in the United States is between Europe and Asia.

LucaSolca, director of luxury banking in Paris, France, said in an interview: "our data show that luxury prices in the UK are at least 20% lower than the global average price."

The latest luxury industry report, written by him, reads: "taking into account the rising exchange rate and frequent terrorist attacks in the European continent, there is a great possibility of a wave of tourist consumption in the UK."

In the past two years, the huge fluctuation of exchange rate has led the luxury consumption market in Japan and Russia. Now it is the Burberry, Mulberry, JimmyChoo and so on that have started in Britain and have many shops.

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Burberry chief financial officer CarolFairweather mentioned in the first quarter financial report last month, "pound sterling depreciation stimulated the group profit growth to 90 million pounds, far higher than the original expected 50 million pounds."

However, Burberry does not plan to adjust the price immediately.

"However, the Group believes that it is appropriate to adjust the price after the final decision."

For most luxury brands in France, they share the same view with CarolFairweather.

Although earnings are evaporated in euros, executives are not eager to raise prices in the UK.

Jean-JacquesGuiony, chief financial officer of LVMH group, a French industry giant, said last week that LVMH's fist brand LouisVuitton did not adjust its price in the UK after its referendum.

His reason is: "the global environment is quite challenging, especially in the period of exchange rate fluctuations.

We do not take immediate measures to adjust prices, which do not mean that we do not have control over prices, but that the group should take a long-term wait-and-see attitude towards exchange rate fluctuations.