The 23 June vote saw British citizens opting for the country to pull out of the EU and the decision saw the value of the pound immediately plummet: a shift that cross-border retail consumers were apparently quick to exploit.
Kiwis online
New Zealand’s internet consumers took to the web in huge numbers to cash in on the favorable exchange rate, with the NZ Dollar 24% stronger against the pound than it had been at the end of June last year.
Spending by New Zealanders on UK sites shot up by 47% in the final week of June as compared to the same period in 2015, while for the rest of the world, it was up just 14%.
Beauty was one of the top categories attracting consumers from New Zealand, according to BNZ, along with clothing, computers, tech accessories and outdoor equipment. Together, these categories contributed two-thirds of the increased spending seen across all retail categories.
“Movements in the exchange rate played a key factor in Kiwis' spending,” note the report’s authors of the spending influx. “It will be interesting to see the extent to which the upsurge in UK purchases persists.”
Keeping calm
As the process for Britain’s withdrawal from the EU remains unconfirmed, industry bodies are urging calm in the face of Brexit market upheaval.
Indeed, CONSUBAT, a trade group that supports companies within the fine chemicals, cosmetics and toiletries industry, has encouraged industry players to “Keep calm in the eye of the Brexit storm”.
Speaking in a recent newsletter to members, the organisation stated: “In our analysis, for the foreseeable future, Brexit will have little impacts towards any change on these EU laws: Regulation (EC) 1907/2006 - EU REACH, Regulation (EC) 1223/2009 on Cosmetic Products marketed in the EU and Animal Test Ban: part of Regulation (EC) 1223/2009.”
The UK’s Cosmetics, Toiletries and Personal Care Association has voiced similar calls for calm, saying; “the CTPA would like to reassure its members, the cosmetics industry at large and of course our millions of consumers, that the UK decision to leave the EU does not alter the strict safety laws that govern our cosmetic products.”