By: Ahmad Saed Alzein, CEO of House of Emirates®
London – UK
24 -5-2025
Few sectors have been so uniquely affected since the formal United Kingdom exit from the European Union as the luxury sector. Brexit has been a complex array of challenges and opportunities for British luxury companies—iconic for heritage, craftsmanship, and world dominance. Export controls and supply chain disruption to alterations in consumer pattern and new markets are just a minor subset of the broad and far-reaching ripple effects of Brexit.
Before Brexit, the EU single market was such that British luxury items—high-fashion and jewellery, heritage leather goods—could move freely across borders. That frictionless marketplace no longer exists. Post-Brexit, luxury businesses are dealing with customs forms, tariffs, and bureaucracy that have significantly increased the cost and hassle of trading across Europe. For big global brands, that might be a frustrating inconvenience. But for smaller labels that built their reputation on cross-border selling, it can be a threat to survival.
Customs delays are worst for the luxury sector, where timing and presentation are integral to the product’s allure. A consumer waiting two extra weeks for a tailored jacket from a British atelier, or a French boutique paying unexpected fees to bring in British perfume, can damage not only revenue, but reputation.
Luxury businesses have also needed to rethink their supply chains. A typical British-designed handbag might contain Italian-supplied leather, French hardware, and UK assembly. Every border crossing now requires detailed paperwork and compliance with new origin rules, which can bar products from tariff-free entry if the parts do not meet strict EU standards. It is now a priority for UK luxury businesses to maintain supply chain flexibility.
Alongside the physical settings, Brexit has reshaped the financial and administrative environment of luxury ecommerce. Previously, EU consumers were able to shop UK online retailers without worrying about customs fees or complicated VAT processes. Today, they are being charged more, with extended delivery periods, and in others, left stranded. This strain had a direct implication on Internet conversion rates and caused many British luxury brands to establish distribution facilities or even new legal units within the EU to retain customers’ confidence.
The second issue is talent. The luxury industry is based on creativity, and Britain has always attracted designers, craftsmen, stylists, and fashion managers across the EU. The introduction of the new points-based immigration system post-Brexit makes it harder and more expensive to hire international talent. Meanwhile, British fashion schools, many of which had attracted a high percentage of EU students, have been reporting declining EU enrolments, which could in turn contribute to a future lack of creative leadership and innovation.
But in all the turmoil, there is also transformation. Brexit has caused luxury companies to rethink their global strategies. While the EU market is significant, the majority of British brands are already growing their business in North America, Asia, and the Middle East. The “Made in Britain” brand retains vast prestige within these markets, particularly when combined with digital innovation, authenticity, and sustainability. Some of the more upmarket avant-garde fashion brands are also embracing the new technologies like blockchain to create assurance and provenance—especially relevant in a post-Brexit world where provenance and logistics are more than ever before. Others are creating brand affinity and scarcity using NFTs and Web3 platforms with younger, tech-savvy consumers.
Brexit has also seen the beginning of a shift towards domestic, sustainable manufacture.
While logistics and sourcing have become more complex, brands are now making investments in local skills and reduced supply chains, a reaction that aligns with the priorities of a new generation of green luxury consumers. In some way, this return to making things locally is forcing brands to revisit their cultural roots—an unexpected silver lining in an era of disruption.
Ultimately, the Brexit tale and luxury are not one of loss, but of transformation. British luxury brands, known for their resilience and resourcefulness, are riding out this new world with astute turns, digital savvy, and renewed attention to what sets them apart: quality, heritage, and long-term strength.
As the world adjusts to post-Brexit, the winners will be the brands that not only understand the problem sets of this new reality—but also the rare opportunities to reinvent, innovate, and lead.
