After a referendum campaign that highlighted deep social, geographic
and economic divisions in the UK and shook the world, UK businesses are in a state of uncertainty post-Brexit win, and it is important that clear guidance and encouragement are given to UK brands to
help them make plans for their businesses. As the
British Retail Consortium (BRC) has pointed out, without clarity,
retailers and other businesses and hence the economy will suffer from a prolonged
period of uncertainty and that the Government must move quickly to explain the
process of disengagement from the EU.
So it is welcomed news that
Walpole, an alliance of 170 of
Britain’s finest luxury brands, is planning to host a member workshop aimed at
discussing the implications of Brexit and identifying key issues to campaign
on. Prominent brands represented by
Walpole includes Burberry, Jimmy Choo, Farfetch, Selfridges, Harrods, Thomas
Pink and Temperly and McArthurGlen. The date and location of the workshop are yet to be
announced.
It remains vital to work together to ensure stability and
collaboration, so said the CEO of Walpole, Michelle Emmerson in a post-referendum
letter.
“I know you will be working to understand the potential
implications for your businesses. As we all know, we should find encouragement
in the fact that British luxury goods and services are sought by customers from
all around the world, whether they are bought here or as exported products.
Europe is a big market, but by no means the only one. What’s more, it does not
seem to be in anyone’s interests to abandon a single market in which goods move
freely,” she said.
“Therefore, it is vital that we retain open access to the
European market and throughout negotiations, we shall urge the government to
fight to promote and protect the interests of the luxury industry - worth over
£32 billion a year to the UK and employing 113,000 people across the UK.”
According to the British Retail Consortium (BRC) CEO, Helen
Dickinson, keeping the cost of goods down for consumers and providing certainty
for businesses must be at the heart of the Government's plans for life outside
of the EU.
“Without clarity, retailers, other businesses and hence the
economy will suffer from a prolonged period of uncertainty,” the BRC said in a
statement. “We are already seeing the commencement of a period of
considerable volatility as financial markets react to any emerging information
that might indicate how the new relationship to the EU might be shaped. Retailers should be prepared for the
possibility of significant swings, particularly in the exchange rate and
consumer confidence,” the BRC warned.
In its exit negotiations the Government should aim to ensure
that the trade benefits of the Single Market (i.e. the absence of customs
duties) are replicated in the UK's new relationship with the EU, the BRC said.
Meanwhile another trade body, the
Creative Industries Federation has pledged to play a positive role in safeguarding the future of
the UK’s arts, creative industries and cultural education and their significant
contribution to the economy in light of the decision to leave the European
Union.
John Kampfner, Chief Executive, said: “As the UK creates a
new identity and a new position on the world stage, our arts and creative
industries - the fastest growing sector in the economy - will play an important
role.
“It will be vital for all sides to work together to ensure
that the interests of our sector on issues including access to funding and
talent are safeguarded as the UK forges its new relationship with Europe. The
importance of British culture in representing our country to the world will be
greater than ever.”
The Federation, whose members' poll showed an overwhelming
vote in favour of remaining with the EU, plans to hold a series of events to
engage the creative community on charting a way ahead, it said in a statement.
While a weak British Pound may boost British fashion labels’ exports
to overseas market, a weaker British Pound means that British companies will
spend more on production costs in other countries, and will have to pass on
those expenses to the shoppers by raising prices; if it’s harder for other EU
citizens to visit England, it may also cut down on shopping by European
tourists. Not surprisingly, 90 per cent
of the members of the British Fashion Council wanted to stay in the EU.