Part 1: Brexit..and Bags.
Part 3: Brexit and the Asian Market
Some of the dust is settling but the picture isn’t getting any prettier. Europe is in the midst of a once in a generation transformation. Last week, we reported on the ongoing Brexit saga in which voters in the UK decided 52-48 to abandon the central pillar of European integration, the EU. Financial markets, largely predicting the ‘stay’ vote would win, took a beating at the end of last week, with international banking stocks the hardest hit. Now that analysts have had some time to contemplate the medium-long term ramifications, the situation seems most dire for the UK itself. A prolonged recession is inevitable.
This reality has pushed the currency into a downward spiral. The British Pound is at its lowest levels in decades against the US dollar, hovering around $1.30 from a high of $1.47 just ten days ago. And it would be a huge surprise if this was actually the bottom. As more news comes in over the next few months about the effects of the exit on trade deals and treaties, the pound will likely depreciate further against safer currencies and assets like gold.
Currency Legend
| Currency | Pre-Brexit* | Post-Brexit |
| 1 GBP (£) | $1.47 USD | $1.33 USD |
| 1 EU (€) | $1.13 USD | $1.10 USD |
*Pre-Brexit exchange rates refer to June 22nd. Post-Brexit are based on today’s current conversion rates. Given the volatility of the pound and euro, values may be subject to change.
In this sea of bad news, there is however one bright drop of hope….for bag lovers planning a trip across the pond, you’re in for some huge savings! Following the collapse of the pound, goods in the UK are selling at a serious discount to prices just a week ago. To demonstrate concretely what this savings looks like, we’ve picked four of the most popular bag styles and priced them out in pounds and euros for US shoppers before and after Brexit:
Chanel Medium Classic Flap Bag
Handbag Math: US Shoppers will experience a $473 savings if buying a Chanel Classic Flap today versus last week in the UK.
| Region | Pre-Brexit | Price in USD | Post-Brexit | Price in USD | Savings |
| USA | $4,900 | $4,900 | $4,900 | $4,900 | $0 |
| UK | £3,380 | $4,967 | £3,380 | $4,495 | $473 |
| Europe | €4,260 | $4,814 | €4,260 | $4,686 | $128 |
| Region | Pre-Brexit | Price in USD | Post-Brexit | Price in USD | Savings |
| USA | $4,900 | $4,900 | $4,900 | $4,900 | $0 |
| UK | £3,380 | $4,967 | £3,380 | $4,495 | $473 |
| Europe | €4,260 | $4,814 | €4,260 | $4,686 | $128 |
Chanel Small Boy Bag
Handbag Math: US Shoppers will experience a $382 savings if buying a Small Chanel Boy Bag today versus last week in the UK.
| Region | Pre-Brexit | Price in USD | Post-Brexit | Price in USD | Savings |
| USA | $4,300 | $4,300 | $4,300 | $4,300 | $0 |
| UK | £2,730 | $4,013 | £2,730 | $3,630 | $382 |
| Europe | €3,420 | $3,865 | €3,420 | $3,762 | $103 |
| Region | Pre-Brexit | Price in USD | Post-Brexit | Price in USD | Savings |
| USA | $4,300 | $4,300 | $4,300 | $4,300 | $0 |
| UK | £2,730 | $4,013 | £2,730 | $3,630 | $382 |
| Europe | €3,420 | $3,865 | €3,420 | $3,762 | $103 |
Hermes Birkin 35
Handbag Math: US Shoppers will experience a $949 savings if buying a Hermes Birkin 35 today versus last week in the UK.
| Region | Pre-Brexit | Price in USD | Post-Brexit | Price in USD | Savings |
| USA | $11,900 | $11,900 | $11,900 | $11,900 | $0 |
| UK | £6,780 | $9,967 | £6,780 | $9,017 | $949 |
| Europe | €7,750 | $8,756 | €7,750 | $8,525 | $233 |
| Region | Pre-Brexit | Price in USD | Post-Brexit | Price in USD | Savings |
| USA | $11,900 | $11,900 | $11,900 | $11,900 | $0 |
| UK | £6,780 | $9,967 | £6,780 | $9,017 | $949 |
| Europe | €7,750 | $8,756 | €7,750 | $8,525 | $233 |
Hermes Kelly 32 (Retourne)
Handbag Math: US Shoppers will experience a $878 savings if buying a Hermes Kelly 32 (Retourne) today versus last week in the UK.
| Region | Pre-Brexit | Price in USD | Post-Brexit | Price in USD | Savings |
| USA | $10,400 | $10,400 | $10,400 | $10,400 | $0 |
| UK | £6,270 | $9,217 | £6,270 | $8,339 | $878 |
| Europe | €7,400 | $8,362 | €7,400 | $8,140 | $222 |
| Region | Pre-Brexit | Price in USD | Post-Brexit | Price in USD | Savings |
| USA | $10,400 | $10,400 | $10,400 | $10,400 | $0 |
| UK | £6,270 | $9,217 | £6,270 | $8,339 | $878 |
| Europe | €7,400 | $8,362 | €7,400 | $8,140 | $222 |
The savings that have resulted from the devaluation of the pound are shocking! Pre-Brexit prices are based on June 22nd exchange rates. Let’s summarize some of the major consequences of Brexit…
- Brexit had a catastrophic effect on the UK and global economies.
- The British pound has fallen to its lowest level against US dollar in over 30 years.
- Bag shoppers from the US in the UK stand to see huge savings over the coming months.
- Companies will be forced to reconsider pricing schemes (harmonization) in the future. For now, it’s just a question of when.
Let us know your thoughts and personal experience on the BopTalk threads. Also share what you’ve bought post-Brexit by tagging @pursebop with hashtag #pursebopBBB (Buying Bags after Brexit )
Read related articles below:
Brexit…and Bags.
Chanel Increases Prices in the UK
Hermes Increases Prices in Europe
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Updated: June 5th, 2017
Comments
2 Responses to “Part 2: Buying Bags After Brexit”
I love this post! I’m keeping a thing on all eyes Brexit on my blog, too. An impromptu trip to London sounds tempting!
janelleclayton.com
I like your thinking. Quite a savings especially for Birkins or Kellys.