Online Shoppers Buying British Products as Pound Dropped to a Three Decade Low
Chinese online shoppers are cashing in on the fall of the British pound and started to purchase expensive foreign luxury goods after UK voted to leave the European Union. The British pound dropped to a three decade low after the Britons voted last week to leave the European Union bloc, thus making the country’s good and services cheaper to overseas buyers. The pound dropped by 10 percent against the renminbi.
A white collar worker in Hangzhou was able to buy a handbag for 3,000 yuan from a British online shopping site and saved 300 yuan compared to the price a week ago. Although tariffs is still needed to be paid, the decision to buy the handbag after the pound weakened, since tariffs have been applied for a long time and is not often things like this happens. Since the pound fell, Chinese online shoppers bought goods on UK e-commerce sites and asked dai gou or over seas shopping agents to assist them with their purchases in brick and mortar stores and then ship the packages to China. According to ymatou.com a cross border e-commerce site that daily sales of European products doubled and mostly driven by the sale of British products.
Based in Shanghai the company said that shopping malls in Europe are holding their annual summer sales and combined with the fall of the pound, this is the best time to purchase British products. High end products with prices ranging from 4,000 to 6,000 yuan are the best sellers on the site, and 70 percent of the online buyers bought branded handbags such as Hermes Kelly that costs around 98,000 yuan.
Baidu Index gauges the changes in the popularity of search requests for UK dai gou increase by 175 percent from June 17 to 21 peaking on Friday when the referendum was announced. Analysts said that the short term fall of the pound attract more online shoppers to shift their attention from Korean and Japanese products and focuses on British Products.