Luxury and fashion industries in the UK are facing a precarious situation with the looming possibility of a no-deal Brexit, as highlighted in a recent analysis conducted by Plimsoll Publishing. The current dependence on EU markets, with 43% of UK exports directed towards EU countries, puts these sectors at significant risk of disruption in the absence of a trade deal.
In particular, the Luxury Goods sector is identified as the most vulnerable, with 39% of companies within this sector deemed to be at risk and 33% already operating at a loss. Similarly, Clothing Designers are also facing challenges, with 32% of them flagged as being in danger and 31% already operating at a loss.
A major concern for both luxury goods and clothing industries is their high reliance on exports, with 55% of luxury goods companies and 63% of clothing designers involved in international trade. The potential rise in tariffs and additional bureaucracy post-Brexit could pose significant obstacles for these sectors.
According to Christopher Evans, a Senior Analyst at Plimsoll, the chances of a no-deal Brexit have significantly increased of late. While some industries may find opportunities in this scenario, many others, especially those reliant on seamless trade and regulatory alignment within the EU, are likely to encounter difficulties after March 29, 2019.
Despite UK Prime Minister Theresa May’s statement that a no-deal Brexit “wouldn’t be the end of the world,” the potential consequences for luxury goods, fashion, and other vulnerable sectors are cause for concern. As the uncertainty surrounding Brexit persists, companies within these industries must stay vigilant, assess potential risks, and prepare for various outcomes to safeguard their operations.
For more information on the impact of Brexit on the UK luxury goods and fashion industries, please visit The Guardian and Retail Gazette.
