Fashion Business Context 1 | Page 24

Ted Baker & Brexit Brands are now moving away from the view that online and offline are two separate channels by offering new ways of delivering their brand experience. "Studies have shown that consumers are often disappointed by their favourite brands’ online offerings relative to what they provide in the real world. Studies have also shown that two-thirds of shoppers would use VR to shop." (Rossi, 2015) The virtual store gives Ted Baker a unique selling point (an element that adds value to the business), global consumers are able to experience the brand from wherever they are regardless of location. There is an increased chance that consumers who have interacted with Ted Baker’s online store are more likely to visit the physical location when possible. This combined with the devaluing of the British pound due to the recent Brexit Referendum means that visiting and spending in the UK has never been cheaper for tourists. An increased number of tourists visiting the UK directly correlates to an increase in spending. As a result of an increased influ x of cash the British economy will strengthen, therefore businesses will be in a more secure trading position for the future. Virtual stores attract many global shoppers. Two examples of this would be China and the US. However, WGSN reporter Petah Marian noted that if attacks on UK Muslims continue, it will have a strong impact on how safe Middle Eastern tourists feel in London and whether they want to visit the UK. This in turn will particularly effect British stores like Ted Baker as "Middle Eastern travellers accounted for 42% of total UK sales, growing 7% on last year, according to data from Global Blue. For instance, the Middle Eastern consumer accounts for 30% of non-EU spend at Westfield London and 23% of non-EU spend at Westfield’s luxury quarter, The Village." (Marian, 2016) If there is a decline in the number of middle eastern tourists visiting the UK, this will decrease the number of sales resulting in a lower revenue for businesses which will in turn directly negatively impact brands profit margins. 23