Brexit could hit British luxury segment hard. A no-deal split from the EU would have negative repercussions across the industry. The European Union buys 42 per cent of British luxury exports. Some brands are already feeling an impact from the chaos associated with Brexit. Additional tariffs, taxes and regulation differences between the UK and the EU may cause a fifth of British luxury business to be at risk.

Since 2013, the British luxury industry has grown 9.6 per cent per year, on an average, compared to the UK’s overall economic growth of four per cent. The leading export markets for British luxury goods are the EU, North America and China. British luxury goods encompass a wide breadth of categories, including apparel and accessories, watches and jewelry, fine wines and spirits and car manufacturing. Luxury car sales account for almost two-thirds of all luxury sales. More than a third of total sales from UK automakers are high-end vehicles. Apparel is the second most valuable luxury industry in Britain.

About 70 per cent of British luxury businesses manufacture at least part of their products domestically, benefiting the economy while emphasizing the brands’ appreciation of craftsmanship. Luxury businesses employ 1,56,000 people in the UK, both directly and indirectly. Many British luxury brands, including automakers, differentiate themselves by investing in apprenticeship programs for a highly skilled workforce.