The British luxury industry is currently experiencing exponential growth, with sales soaring to an impressive £48 billion annually. This increase can be attributed to a variety of factors, including a surge in exports and the emergence of shopping tourism as a key driver of sales. According to data from 2013-2017, the sector has seen a remarkable 49% growth rate, with projections indicating a further 35% increase by 2024.
The luxury market in the UK encompasses a wide range of sectors, spanning from designer clothing and footwear to high-end car manufacturing. These industries are flourishing and could potentially reach sales of £65 billion by 2024 if a favorable trade agreement is reached between the UK and the European Union.
One of the main contributors to the sector’s success is its focus on exports, with 80% of luxury goods being shipped to international markets such as the EU, North America, and China. This represents a significant 54% increase since 2013, with non-UK residents contributing £4.5 billion to the sector in 2017 alone. Leading the pack in terms of purchases are China, all Arab states except Iraq, and the US.
Helen Brocklebank, CEO of Walpole, underscores the crucial role that British luxury plays in both the country’s economy and its global reputation. She points to the sector’s impressive growth and its continued investment in UK manufacturing and job creation.
Despite its current success, the British luxury sector faces uncertainty due to the impending threat of a no-deal Brexit. This could potentially lead to a loss of £6.8 billion in export revenues for luxury businesses. It is imperative for policymakers to recognize the significance of the sector and provide the necessary support to ensure its sustained growth.
Michael Ward, chairman of Walpole and managing director of Harrods, recognizes the substantial impact of British luxury brands on the nation’s international image. He underscores the importance of safeguarding and promoting this thriving sector to ensure its longevity. Ultimately, the British luxury industry serves as a symbol of excellence, showcasing the best of British heritage, creativity, craftsmanship, and innovation on a global scale.
For more information on the British luxury sector and its impact on the economy, please visit Mintel and Office for National Statistics.
