UK exit from European Union may bring billionaire loss to luxury brands

The European Union is one of the most important economic and social organizations in the world, with branches encompassing virtually all market sectors. Therefore, when the UK officially announced that the organization was abandoned, many doubts arose as to the legal and financial developments of that decision.

Last week, a study was published on the possible impact of this decision on the luxury market and the conclusions were largely worrisome, especially for the British brands. According to Walpole, the organization responsible for the report, British brands could lose approximately 6.8 billion pounds per year if there is no agreement by the end of the month.

Marcas como a Bentley (acima) e a Burberry (no alto da página) devem sofre os impactos diretos caso no haja um acordo com a União Europeia até o final do mês de março

As in many countries, much of the production of luxury goods in the most diverse English market niches is destined to export, especially to European countries. “Exports lost for British luxury will cost the British economy about seven billion pounds and we believe that money should be used to strengthen the country and not weaken it,” Helen Brocklebank, CEO of Walpole, said in an interview.

It is noteworthy that in the case of England, approximately 80% of the total luxury goods produced in the country are exported. This impact, if it does, will hit some of the world’s most iconic luxury brands such as Burberry, Harrods and Bentley.