Travellers on their way to London are in for a treat grander than the famous landmarks as they can now buy Louis Vuitton handbags and other luxury items that are less pricey than in New York, France, and China.
This sudden massive discount is the effect of Britain leaving the European Union, according to a research conducted by Deloitte for The Wall Street Journal. Dollar spending tourists have reportedly spent more in London than in any places in Europe and its drawing more tourists in the country. The spending surged 36 percent more in August this year than a year ago.
In an interview with Nick Pope, the head of the fashion and luxury at Deloitte, said that people just don't like paying more for the same product. "The trend in luxury pricing in the U.K. is being driven mainly by the depression in sterling-thus making the same item more affordable in the U.K. market than any other major luxury market," BBC reported.
The Speedy 30 Louis Vuitton handbag costs $802 in London while the same item costs $850 in France, $970 in the US, and $1,115 in China. A Balenciaga fringe dress costs $1,312 in London, while it costs $1,560 in France, $1,765 in the US, and $1,665 in China. Loewe's Elephant purse costs $311 in London, $330 in France, $380 in the US, and $434 in China.
Chinese buyers are among those from the overseas who have flocked to Europe recently to buy luxury goods in bulk taking advantage of the lower euro and avoiding the Chinese import duties at the same time. Many of these buyers are reselling the items at discounted prices in Asia, but at a premium for European buyers.
Since the Brexit vote, luxury brands have seen a significant increase in sales that even jewelry and watches' sales have soared to a 16.6 percent compared to last year's. Other than that, travel booking from the US to Britain and bookings in five-star hotels are higher than ever because people are taking advantage of the great dollar rate.
However, Mr. Pope warned that the discounts will not last because a small number of brands are already putting the prices up. On the bright side, he said that if this becomes the new normal, it is expected that other brands would respond with pricing adjustments.