The exchange rate drop has led to a fever of online purchasing of British goods in China. (Photo: Li Hao/GT)
The result of UK's historic referendum on whether to leave the EU was revealed on June 24 and the UK left. While the UK is involved in increasingly bigger problems such as the petition to vote again, Chinese consumers who have a passion for shopping and traveling overseas began to celebrate the dropping exchange rate.
By June 27, the exchange rate of pound to yuan is 1: 8.598, while only days earlier, on June 23, the rate was 1: 9.366, an employee from the Bank of China told Metropolitan.
Yu Yiran, 25, who lives in Beijing, has been overwhelmed by overseas purchasing sales the past two days. She is not the kind of person who cares about international politics, however, after she heard about the dropping exchange rate of the pound, she was rather excited. "I am going to buy a Louis Vuitton handbag as soon as possible in case the exchange rate changes again," said Yu.
The timing of the exchange drop coincides with the annual summer sale where some retailers in Britain offer discounts up to 50 percent. The lower prices will last until July. Paired with the new low exchange rate of the pound, this summer provides Chinese consumers with the perfect opportunity to shop overseas and save big.
On Sina Weibo and WeChat, many Chinese fashion buyers have posted links for Chinese consumers to buy British goods. Buyers can find deals directly on their phones. Girls can shop on Unineed.com, a British fashion and beauty retailer which offers cosmetics and skincare products. In addition, they can find clothing, make up and skincare from Givenchy. For babies and mothers, Mio Skincare.com provides baby and pregnancy skincare products. Pixie Market.com provides up to date fashion trends, including the latest styles for clothes, fashion accessories, and juniors clothing, according to the WeChat subscription account Dealmoon, an online shopping promotions account on June 25.
Chinese shoppers do not have to be trapped behind their computer screens to purchase goods since shopping trips to the UK are also becoming cheaper. Wei Qingfeng, a staff member at Ctrip, a leading Chinese traveling agency, said in a Qianjiang Evening Post report on June 25, that it is estimated the UK will see a small spike in Chinese tourists in the near future. "The falling exchange rate of pound to yuan will largely reduce Chinese customers' costs in UK, from shopping to accommodation," he said.
The exchange rate of the Australian dollar has fallen as well. Australia, being a part of the British commonwealth of nations, saw the exchange rate of the Australian dollar drop by 3.4 percent. An analyst said that the number of Chinese tourists would rise there as well, according to the Qianjiang Evening Post report.
Another popular way for Chinese people to purchase overseas goods is from overseas buyers. However in the future it might not be a good choice.
Ling Zi, an overseas buyer, said customers should be cautious because some of the overseas luxury buyers are selling fake products after the exchange rate drop. "They are using the low exchange rate to trick people into thinking the lower priced products are real and reliable," said Ling. "When it comes to overseas buying, people should keep an eye out no matter what they buy."
