As you all well know, back in June this year the UK voted to leave the EU. In the days that followed many things happened, one of which was mass panic amongst UK business owners, the pound drop to its lowest value in years and the stock markets plummeted. Business owners were left wondering what it all meant for the future of their companies.
As we approach the end of a bizarre year that was 2016, we wanted to delve a little further into exactly what has happened to UK fashion and retail brands since that day back in June. Having spoken to some of our fashion and retail clients amongst many other entrepreneurial friends , you might be surprised to hear what they said.
It turns out that Brexit has made British brands and products even more sought after than they were before. Ecommerce sales from international customers have been far stronger than originally anticipated and with Black Friday and Cyber Monday looming, we suspect that the British ecommerce industry is set for an even further boost. Some brands are even reporting a substantial rise in like for like sales, like Superdry who have announced a 12.8% growth in comparison to last year with ecommerce being particularly strong.
There could be a number of reasons for the renewed interest in British products from international customers, one is definitely the currency value. International shoppers are able to buy online from British retailers for a much lower price than from retailers in their own country due to the weakness of the pound after Brexit. The second possible reason is the threat of limitations on transportation of British products. We still don’t have the full picture of what the future holds for British trading across Europe and the rest of the world therefore British products have become valuable commodities that may not be so easily available for international customers in the future.
So what can British brands and retailers do with this information?
Knowing that sales from overseas customers is on the rise, at least in the short term, it would be sensible for online retailer both large and small to invest more ad spend and marketing focus on those customers. Keeping in mind and being prepared for making a ‘U turn’ in the long term depending on the outcome of political agreements on UK cross-border trading. We still don’t know what the long term implications will be on the transportation of consumer goods across the single market so it would be wise for retailers to consider short bursts of international focus in order to capitalise on the popularity of British brands whilst being mindful of the current and predicted market climate.
So with that said, we hope you have all prepared strong international Black Friday and Cyber Monday campaigns ready to execute internationally and watch the sales roll in.
We can help you to execute these campaigns for a productive fee at short notice. Get in touch with us today to chat to us about what we can do for your brand. We work with brands and retailers both large and small and can adapt to a broad budget spectrum.