London: The World’s Cheapest Place To Buy Designer Duds?
Anyone in the market for a designer handbag? Maybe not, but if you were ever considering forking up the money for one- now would be the time. Since Brexit has hit the London economy, the pound has crashed more than 17% against the dollar. That means London’s stores like Louis Vuitton, Gucci and Chanel will be selling their products substantially less than anywhere else in the world.
As an example, Alice Casey Hayford explained that, a “Balenciaga Foulard fringe dress, by designer du-jour Demna Gvasalia, costs $1,312 in London, $1,560 in Paris, $1,765 in America and $1,665 in China. And the Loewe elephant bag carried by every street style star worth their salt during fashion week costs $311 in London in comparison to $380 in the U.S.”
The announcement was first made by Deloitte; Nick Pope, Fashion and Luxury Lead at Deloitte explained to the BBC: “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.”
Moreover, this won’t last. So it’s time to really listen up! “Luxury brands are usually – and rightly – cautious about en masse pricing adjustments. 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.”