UK retailers prepare for spend surge as LFW and Lunar New Year collide

As the start of London Fashion Week descends up the UK capital, retailers start to prepare for the anticipated influx of international shoppers, but according to Global Blue, retail tourism experts, the spend boost is predicted to be higher than ever as the week coincides with the Chinese New Year for the first time, running from February 19 to 24.

With China leading the way as the UK's top international spend market, representing 25 percent of the total tax free spend according to Global Blue, the Chinese New Year has been highlighted as the most popular travel period. UK retailers report a soar in spending from Chinese shoppers each February, with spend averaging 739 pounds per transaction on luxury fashion label, British designer brands, high-end jewellery and watched, which can cost up to 30 percent less in the UK due to high luxury taxes in effect in China. Global Blue predicts that this year, the additional appeal of London Fashion Week during the same period will push spend even higher and lure in shoppers not just from China, but across the globe as well.

"London Fashion Week is an international event that attracts over 5,000 trade guests including press, buyers, photographers and broadcasters from over 55 countries. Its consumer event Vodafone London Fashion Weekend provides access to consumers wanting a Fashion Week experience and is part of a city wide celebration that attracts consumers not just from all over the UK, but from all four corners of the globe who are keen to join the action and take home something special from the world’s creative capital," said Caroline Rush, CEO British Fashion Council.

UK retailers set to cash in on influx of globe shoppers

UK retailers are keen to capitalise on the opportunity the combination of events bring, with a number of them introducing tactical promotional strategies to attract and accommodate the influx of spenders. Global Blue has noted an increasing demand from the industries top brands to use its services for further insights on international shoppers needs to prepare their stores and staff to satisfy their every need.

"February is consistently one of the top months for spend, led primarily by Chinese shoppers over their New Year holiday, with February 2014 seeing Chinese spend growth of 23 percent year-on-year," explains Gordon Clark, UK Country Manager at Global Blue. "As London Fashion Week and Chinese New Year coincide for the first time, the opportunity for UK retailers has doubled this year and they need to make sure they are ready to maximise the potential. Tax Free services, UnionPay terminals, translated marketing materials and cultural training for staff, are all valuable services to entice globe shoppers and increase spend in store."

In addition to launching culturally aimed promotional strategies, a handful of luxury brands are increasing their international appeal by running events, launching limited edition collections, decorating their stores and introducing special promotions to mark the celebrations for the upcoming Year of the Sheep.

For example, British department store group Selfridges is set to launch exclusive Chinese New Year gift cards, handed out inside lucky red envelopes. They will also have an in-house calligrapher creating uniquely designed cards, complimentary with any purchase made in The Wonder Room. British heritage label Burberry has also taken on their own expert who will be personalising envelopes with traditional Chinese calligraphy, which will be complimentary with any Burberry purchase.

Jo Leslie, China - UK Business Development Manager at VisitBritain, added: "Shopping in Britain is seen around the world as a positive and welcoming experience, and one of the things VisitBritain promotes to encourage more Chinese visitors to visit our nations and regions. Although the majority might come here to purchase designer goods at Harrods, Selfridges or on the King’s Road, a huge number also make the trip to seek out bargains, whether it’s finding the best deals on designer goods at Bicester Village and the McArthurGlen Designer Outlets. China is now the world’s largest outbound market, with visitors to Britain already spending 500 million pounds. VisitBritain has ambitious plans to double the value of that market by 2020."