It seems like the whole fuzz about the Brexit has cooled down a little, but that doesn't mean it's over and done with. It's still unclear what final effects the Brexit will have on the fashion industry, but the fact remains that the British Pound is still dropping in value. However, there seems to be a silver lining. In this case for the Italian fashion industry, as there sales in the UK have gone up. due to the many tourists shopping there (seeking bargains because of the great conversion rate).
All positive sounds are coming from Italy, as brands like Prada and Tod's have experienced bolstering sales as a result of the Brexit. CEO of Tod's, Diega Della Valle states 'In the latest quarter, sales in our British stores showed steady growth, probably because the local currency had lost so much of its value'. He does tell to, that a change in strategy won't be necessary as he doesn't think this is a long-term thing. Riccardo Sciutto, chief executor of shoe brand Sergio Rossi, went a bit further on that statement, suggesting that Italian brands that aren't on the market yet should take their chance now and enter the British market. This way they can still benefit of the current situation.
The British struggle
Ofcourse, not all are positive. Luca Solca, a luxury goods analysts, worries about the production production process. A lot of British brands produce their goods in Italy, for example Burberry. Burberry produces all their small leather goods in Italy and is in need for a good import agreement. Other British brands worry about their Italian suppliers too, like Anya Hindmarch. It gets more expensive to get raw materials and pay for production and therefore a lot of British brands struggle.
Don't shop until the exchange rate drops
Experts guess that the exchange rate wil only drop more, a true disaster for the British. On the other hand, great for anyone waiting to buy a new designer bag. The perfect excuse to plan a trip to London in the future!