Chinese online retailer JD.com believes Chinese consumers will benefit from Brexit fallout, anticipating that the price of British brands will drop in the world’s biggest online shopping market.
Tony Qiu, head of JD Worldwide, told the Telegraph that fluctuations in the value of the British pound, caused by the UK’s recent vote to leave the European Union, will give UK brands a more competitive price point in China – and even give them an advantage over products from other countries.
“From a business perspective there will be an immediate impact because the purchase price will be lower as the pound falls in price,” he said. “We will pass this on to the consumers and so, as UK products because cheaper, they will have a competitive advantage in comparison to other countries.”
Xiaotang Tang, the co-founder and CEO of NoFashion.cn, a leading Chinese fashion industry news portal, noted that the luxury sector was likely to see the most activity.
“Consumers passionate about buying luxury products always react swiftly to any sharp change in the value of foreign currencies,” she told the South China Morning Post.
British brands are already popular with Chinese consumers, as disposable income takes off and more local consumers want to invest in quality international brands.
Data sourced from Telegraph, South China Morning Post; additional content by Warc staff.
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(Source: Warc)