U.K. Luxury Market Could Double By 2019
Walpole, the organization formed by 170 British companies in the luxury sector, has published its traditional annual report on the industry. This time forecasts are very optimistic.
The study, elaborated by the international consultancy Frontier Economics, estimates that the British luxury market in 2019 could reach between €69.5 and €77.5 billion, which would nearly double the figure of 2013. Currently, this sector, which includes companies such as Burberry or Rolls Royce, represents 2.2% of UK´s GDP and employs more than 110,000 people.
In the report, the consultant noted that most of the production of the luxury British companies is exported (about 80% of the total), representing nearly 5% of all UK exports. Much of these sales abroad due to the automotive industry.
If the forecasts are met, this would mean that the UK market is growing twice the industry average globally. According Sanford C. Bernstein estimates, the luxury industry will grow by 5% worldwide in the next five years, compared with a 12% annual for the British sector.
Frontier Economics also highlights a negative aspect for the British companies. In its opinion, the visa policy is detrimental to business, as citizens of China and the Middle East have more complications to get one and they are regular customers of these luxury products. The consultant estimates that British industry is losing more than €1.6 billion every year over this issue.
Disclosure: The author is not responsible for the views expressed in the article. The text was written freely expressing ideas, without receiving any compensation. The author has no business relationship with any of the companies whose shares are listed in this article.
