The current conditions around Britain’s trading relationship with the EU present a number of challenges. Increased logistical beaurocracy, tariffs and rules of origin all have made trade more difficult. In response, some brands have been forced to establish fulfilment centres in Europe, diverting investment and jobs away from the UK.
Luxury sector exports to the EU are up to 43% lower than they may have been without Brexit.
Beyond the policy landscape, there are several broader challenges that have hit the sector; delays, costs and paperwork have caused consumers to lose confidence, while inconsistent enforcement at the border has led to brands struggling with exporting even after agreements to smooth trade have been made.
Particular challenges around VAT, returns and shipping of samples have been raised as areas where progress could be made.
We recommend a series of measures that the UK government could take, in partnership with industry, to improve trading relations.
