Brexit is bound to jeopardize the (amazing) expansion of British luxury business. In fact, in the United Kingdom the luxury industry has been increasing by 49% from 2013 to 2017. As emphasized in the latest survey carried out by Walpole, a British association of the high-end luxury industry, luxury now accounts for 48 billion pounds, as exports reached 80% of the overall turnover (+54% since 2013): 156,000 employees currently work in the sector (there were 113,000 of them in 2013). Apparel and footwear exports amounted to 5.81 billion pounds in 2017, while luxury leather goods reached 1.55 billion pounds.
What is wrong with that?
According to the survey, commissioned by Walpole, carried out by Frontier Economics consulting company, the business “will keep growing rapidly in the mid-term”, and might possibly reach 65 billion pounds in 2024, as long as the United Kingdom and the European Union come to an agreement. Conversely, if they do not make any arrangement (that would be a no deal, which they much fear), overall revenues will probably reach a smaller amount, from 52 to 60 billion pounds. Walpole financial analysts did emphasize that luxury business has been growing more than twice the economy rate of the United Kingdom: on average +9.6% on annual basis. Luxury cars (most of all embellished with leather interiors) are driving the positive trend. Yet, Brexit might possibly jeopardize such rewarding industry. Helen Brocklebank, Walpole managing director, pointed out: “The UK still fears the possibility to withdraw from the EU without any deal: in such event, British luxury businesses would lose 6.8 billion pounds, owing to lower revenues coming from export”.