London Is The Cheapest City To Buy A Designer Handbag (2024)

The pound has plunged against the dollar by more than 17 percent since Britain voted to leave the European Union earlier this year, and while that might not be the best news for the state of our economy, it seems there is a silver lining for fashion fans. According to new research from Deloitte, designer handbags and other big-name additions to your wardrobe now cost less in London (in dollar terms) than anywhere else in the world.

Picking up one of Louis Vuitton’s iconic monogrammed Speedy 30 bags will currently set you back £642 or $802 (as of October 7), compared to €760 or $850 in Paris, $970 in New York or 7,450 yuan ($1,115) in Beijing.

The study concluded that 64 percent of luxury products are now cheapest in the UK. Balenciaga’s Foulard fringe dress will set you back the equivalent of $1,312, compared to $1,560 in Paris, $1,665 in China and $1,765 in the United States.

Model carries a Louis Vuitton handbag

©Getty Images

Speaking to the BBC, Deloitte’s Fashion and Luxury Lead Nick Pope revealed, ‘the trend in luxury pricing in the UK is being driven mainly by the depression on the sterling – thus making the same item more affordable in the UK market than in any other major luxury market.’

So, if you’ve been biding your time waiting to make that big designer purchase, it’s certainly worth taking the plunge – before the brands catch on and crank up their prices accordingly. ‘Luxury brands are usually – and rightly- cautious about en masse pricing adjustments,’ explains Pope. ‘But if over six to 12 months this sterling position becomes the “new normal” – and hence margins are under continued pressure – I would expect more brands to respond with pricing adjustments.’

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Pound's Plunge and Its Impact on Fashion

The pound has indeed plunged against the dollar by more than 17 percent since Britain voted to leave the European Union earlier this year. This has led to a situation where designer handbags and other luxury items are now more affordable in London, in dollar terms, compared to other major luxury markets around the world. For example, a Louis Vuitton's iconic monogrammed Speedy 30 bag costs £642 or $802 in London, compared to €760 or $850 in Paris, $970 in New York, or 7,450 yuan ($1,115) in Beijing. Similarly, Balenciaga’s Foulard fringe dress is priced at $1,312 in the UK, compared to $1,560 in Paris, $1,665 in China, and $1,765 in the United States.

The study by Deloitte concluded that 64 percent of luxury products are now cheapest in the UK due to the depreciation of the sterling. This trend in luxury pricing in the UK is mainly driven by the depreciation of the sterling, making the same items more affordable in the UK market than in any other major luxury market. However, it's worth noting that luxury brands are usually cautious about en masse pricing adjustments, but if the sterling position becomes the "new normal" over time, more brands may respond with pricing adjustments .

So, for fashion enthusiasts who have been considering making a big designer purchase, it may be worth taking advantage of the current situation before potential pricing adjustments by luxury brands in response to the sterling's depreciation.

Concepts Used in the Article

The concepts used in the article include:

Pound's Depreciation: The article discusses the impact of the pound's depreciation against the dollar on the affordability of luxury items in the UK compared to other major luxury markets.
Luxury Pricing Trends: It highlights the trend in luxury pricing in the UK driven by the depreciation of the sterling, making luxury products more affordable in the UK market than in other major luxury markets.
Potential Pricing Adjustments: The article mentions the possibility of luxury brands making pricing adjustments in response to the sterling's depreciation becoming the "new normal" over time.

These concepts are essential for understanding the current state of the luxury market in the UK and the potential implications for consumers interested in purchasing designer items.

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