Like many businesses, retailers are closely monitoring the effects of the Brexit referendum. While much remains to be seen, British fashion retailers, such as Burberry and Superdry, have seen profits jump due to the weaker pound. Burberry’s in-store sales have swelled as foreign tourists spend more on luxury items in the shops. Meanwhile, online clothing store Superdry has seen increased spending from customers based outside of the UK, helping the company beat their profit forecasts.
A weak exchange rate provides distinct upside opportunities for British retailers related to international online shopping. A recent global commerce study from Bronto looked into the attitudes of consumers regarding cross-border shopping and found that only 27% of US consumers have made a purchase from a UK-based store, despite 77% being open to purchasing from abroad.
Conversely, the study found that 80% of British consumers are open to cross-border online shopping, with 44% having made at least one purchase. For this group of consumers, a weaker pound means less shopping power abroad.
The current exchange rates make it an excellent time for UK brands to expand their ecommerce presence and marketing efforts overseas, while looking to lure back local consumers that have been shopping abroad.
The Bronto report also offers insight into where you should focus your efforts to take advantage of this opportunity. Think about product offerings, shipping costs, fulfilment and pricing.
Think globally. Act locally.
To address these new markets, focus on why foreign consumers would consider buying directly from a British…