China’s largest online retailer plans to sell British goods to its 170 million customers and says Brexit will boost trade and exports because of a falling pound.
“I know there are some people who are not happy with the result [of the referendum] but we are optimistic. I think there will be a positive outcome for business in China,” said Tony Qiu, the head of JD Worldwide, at a news conference in Paris.
His website has this week launched a “British Mall” channel dedicated to selling to the Chinese market. “British Mall will be the shop window in China for the best of British products,” he added.
“UK brands and retailers have a massive opportunity to tap into this market, and with British Mall, we aim to give them the platform and tools they need to reach millions of Chinese consumers.”
Mr. Qiu explained that British brands were particularly popular with Chinese shoppers. “As disposable income is rising in China there is an increasing demand for quality and imported products, and goods from the UK are the most popular,” he said.
Adding: “From a business perspective there will be an immediate impact because the purchase price will be lower as the pound falls in price.”
“We will pass this on to the consumers and so as UK products because cheaper, they will have a competitive advantage in comparison to other countries,” he said.
During the referendum campaign, David Cameron seized on Nigel Farage remarking “so what?” on the prospect of a slump in the pound caused by Brexit.
Whilst a falling pound might be bad for the wealthy, who have many assets and holiday abroad frequently, it can be good for working people.
The UKIP leader was relaxed about a falling pound because he predicted that it would boost exports and revive UK industries – an analysis the Chinese retail mogul appears to agree with.