“I have to recharge, if the pound falls in value,” says the American DeLeon, Jian.
The 31-year-old editorial director at online fashion website Highsnobiety is unsurprisingly passionate about the clothes. He says his favorite luxury brands are now much cheaper in London.“As with everything from Comme Des Garcons. I have a jacket last time I was there for 40% less than I would have paid here,” he says.
Before June of last year, when the UK voted to leave the EU, he went only rarely to shop, at its regular business trips to the UK.
“The smallest of things from a pint in the pub, and a short Uber ride were murder on my account, because of the exchange rate.”
Now, some brands are significantly cheaper, he spends about $350 (£274; 310, – Euro), every time he comes, however, thinks that the best exchange mean rate, he saves about $100.
“It is easier to splurge for me, and sometimes I do it, too much for my own good,” he admits.
Image copyright AFP
Image signature Non-UK consumer card spending in Department stores rose by a fifth to the beginning of the year
Mr. DeLeon is not the only one indulging.
Just over a year after the EU-referendum, the pound is around 16%, is still lower against the dollar.
The weakness has attracted a flock of international tourists hungry for high-end brands at relatively cheap prices.
Payments company WorldPay says UK consumer card spending in Department stores rose by a fifth in the first three months of the year, while spending on electrical goods rose by 22.7%.
U.S. buyers, such as Mr. DeLeon were among the biggest wasters, splashing water out of a extra 21.5% on their cards during the same period, it said.
“More for less”
“The extreme currency fluctuations, encourages the buyers buy more,” says honor Strachan, principal retail analyst at GlobalData.
“You get more for your money.”
But how do companies need this kind of discrepancy can manage; with exactly the same product to be priced significantly different, depending on where in the world you bought it?
After all, can a boom in sales in a market that seriously dent demand in the markets of international customers.
Many of the world’s most well-known brands such as Burberry and Apple — increases your UK prices to try and make sure what you sold, the costs are largely the same, the about your international markets.
Image copyright Crockett & Jones
Caption luxury shoe-maker ” of Crockett & Jones says that it is not abusing the customer loyalty you want to
But luxury footwear brand Crockett & Jones has the says 12 locations around the world via offices in London, Paris and New York, as well as global wholesale partners, and has intentionally unchanged prices.
“The last thing we do want is to abuse our customers’ trust and increase the prices in the UK.
“We’ve certainly not increase our prices to take advantage of according to whim, said the currency fluctuations,” says James Fox, export sales director at the company.
Mr. Fuchs believes that, in the long term, it is best to prices.
“We strive to create a level playing field, how and where we can.
“We provide lists of sterling, euro and dollar price, and provides our customers with piece of mind that you are buying in your own currency at a level that the price of potential competitors in the market.”
He says in the rule, deviations tend to have a average of over currencies, and the re-pricing is possible only “once or twice a year” because of the unrest that it caused for the company as a whole.
Image copyright Crockett & Jones
Caption James Fox says his company has a number of “Brexit proof” markets
He is concerned that the company could be lost financially?
“We are happy to be in a position in which we have a couple of very strong “Brexit” – markets, which is the basis of society, if the UK tries its best to mess up international trade,” says Mr Fox.
By selling both its own stores and through wholesalers, the company’s risk is already distributed, he adds.
Crockett & Jones is not the only retailer that keeps prices stable.
Ray Clacher, executive vice president at Trinity – owner of premium brands, Gieves & Hawkes, Kent & Curwen and Cerruti 1881 – says-EU tourists with either the US dollar or any other currency trades in line with the US dollar, driving the sales of their London branches.
However, these sales only represent a small percentage of Trinity are still in the total turnover.
“We have certainly adjusted to reflect our sale prices, the influx of tourism, in fact, quite the opposite, to encourage as we want, more UK, [sales],” he says.
He admits, however, that strategy could change if the costs continue to rise.
Image copyright Getty Images
Caption Upscale tailor Gieves and Hawkes has not increased the cost, despite the pound’s fall in value – but that could change
To fight “if inflation continues to rise and sterling against the euro and the dollar, then we have no choice but to pass on the cost to our customers – but not at the moment,” says Mr Clacher.
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Read more global trade series here.
But it is also important not to be greedy. Many of US are traders in the UK simply price exchanged your dollar sign on your US tags for pound betting that British consumers will be willing to pay a premium for your goods.
Banana Republic is an example of this. After eight years in the United Kingdom last year announced it would close all eight of its branches. The decision followed six consecutive quarters of falling sales.
“You thought that because you are a large brand, they could demand higher prices.
But British consumers are “smarter than that”, says Strachan.
But for traders is not a straight currency conversion from your local currency of the country in which they sell their goods work.
Image copyright Getty Images
Caption Asos local prices did not fit in line with competitors
“Asos made a big deal about the launch of local websites, with a straight currency conversion and it didn’t work – local prices to fit in line with the competitors.
“Brands need to look at who else is in this room, the prosperity of the consumer, and what you are willing to pay, and then set the price accordingly with localized pricing,” says Ms Strachan.
Many companies, especially larger brands, such as Hermes also use currency hedging to protect themselves. This includes working with a bank to buy currency at the current rate, in order to protect against adverse future levels of volatility.
In the end, when Ms Strachan says that the ability of a company to cope with currency volatility depends on how much people want to buy what you are selling.
“If you still want it, customers will buy it,” she says.