Will Brexit give Aussie Shoppers Price Savings?

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Will Brexit give Aussie Shoppers Price Savings?

Postby AUbicycles » Fri Jun 24, 2016 4:34 pm

The news is out, the UK referendum results saw Britains vote to leave the the European Union. The UK was already somewhat isolated from the European Union both geographically and politically and the scare campaigns underpinning the Brexit movement are a catalyst for the UK to depart from the EU.

Already the Pound Sterling is continuing to fall (Brexit campaigners may not have anticipate this move would weaken the financial markets).

For Australian shoppers it may create a new opportunity - as the pound falls it gives Aussies better buying power and effectively would make UK online purchases cheaper. Wiggle, Chain Reaction Cycles and the other smaller UK online bike shops usually pegged their pricing on the currency exchange value so, depending on the trajectory of the Pound, UK online retailers may profit from increased trade. The flip side is that Australian online retailers may struggle to compete on price. Local online retailers such as Cell Bikes and Bike Bug have been increasingly price competitive with UK retailers and this could shift as a result.

Stock brokers... jump in with your predictions so Australian cyclists know what is happening and when to BUY, BUY, BUY!
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Re: Will Brexit give Aussie Shoppers Price Savings?

Postby silentC » Fri Jun 24, 2016 4:47 pm

I don't think so. The AUD has already tanked and $50 billion in shares gone. We'll probably be even worse off the way things are going :(
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Re: Will Brexit give Aussie Shoppers Price Savings?

Postby RonK » Fri Jun 24, 2016 5:13 pm

Yes, I have been thinking exactly that and started checking UK prices this afternoon.

I for one will be watching the fx closely, and might just click the button on a Nordisk tent if favourable rates emerge.

But you may have missed the boat if you planned on ordering from the US.
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Re: Will Brexit give Aussie Shoppers Price Savings?

Postby AUbicycles » Fri Jun 24, 2016 5:51 pm

I am seeing other markets dip - so if they stabilise again while the pound remains down, then there is a chance. So many questions - could just be a 'trend' for the British, they love their trends but this one will have lasting consequences and overall it will affect exports.

While Australia has a different trade relationship with the UK - the effect on pricing will be one to watch with curiosity.

An interesting one - if the Northern Irish and Scottish are fed-up and push to move out of the UK and align with the UK, this could further change. c r c were in Northern Ireland but now with Wiggle ownership - it could in fact give rise to a new serious of Northern Irish online retailers who could compete on price.

If pricing becomes a long-term detracting value for UK online retailers, mainland European retailers (who are traditionally non-English speakers) and Asia based retailers could take command. All speculation of course but there is a lot of potential for the market to change as the Brexit won't, in my view, make the UK stronger.
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Re: Will Brexit give Aussie Shoppers Price Savings?

Postby CKinnard » Fri Jun 24, 2016 5:53 pm

A loonngggg way to go back to 2012 advantage.

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Re: Will Brexit give Aussie Shoppers Price Savings?

Postby warthog1 » Fri Jun 24, 2016 6:33 pm

Have the Poms just committed economic suicide?
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Re: Will Brexit give Aussie Shoppers Price Savings?

Postby Xplora » Fri Jun 24, 2016 7:03 pm

warthog1 wrote:Have the Poms just committed economic suicide?
Don't worry, the world could use a little instability.

This is all wayyyy political, but I doubt this will hurt Brit's too much... They wanted to access global markets and with the pound collapse it makes it easier to do so.

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Re: Will Brexit give Aussie Shoppers Price Savings?

Postby Mulger bill » Fri Jun 24, 2016 7:05 pm

warthog1 wrote:Have the Poms just committed economic suicide?
More likely muder by media punditry and market forces. It's happened before.
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Re: Will Brexit give Aussie Shoppers Price Savings?

Postby AUbicycles » Fri Jun 24, 2016 8:17 pm

Aussie dollar has taken a hit as well, so there wont be an advantage yet.
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Re: Will Brexit give Aussie Shoppers Price Savings?

Postby trailgumby » Fri Jun 24, 2016 9:15 pm

There's so much about that troll Nigel Farage that rubs me the wrong way. He handles the truth very loosely, and seems to revel in being inflammatory. If he becomes any kind of leader, the UK's implosion is virtually assured.

And then we have Trump in the US in much the same mould.

It's going to be an interesting ride.

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Re: Will Brexit give Aussie Shoppers Price Savings?

Postby DavidS » Fri Jun 24, 2016 10:15 pm

I think they are mad to have voted for Brexit but there you go.

Have been thinking this might have a temporary impact on bike part prices and I'll be looking.

Next little amusement will be to see of Trump gets elected (amusing, actually not really, scary more like it). Now, I really don't think he will become POTUS but I never thought he would get the nomination. So now I'm wondering what the odds are on a Trump win and whether it is worth investing a few dollars in a purely speculative bet on Trump winning in November!

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Re: Will Brexit give Aussie Shoppers Price Savings?

Postby Mediocratus » Fri Jun 24, 2016 10:52 pm

Most of the bike parts are made in the far east or in continental Europe. If the British pound stays down then the Uk shops will be paying more to import them and that will get passed on. So I wouldn't expect to see any long term price advantages.

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Re: Will Brexit give Aussie Shoppers Price Savings?

Postby Ivanerrol » Fri Jun 24, 2016 11:00 pm

The electorate have only voted to leave the E.U.
Before the actual relinquishment of membership. The U.K. government must give notice to the E.U. Bureaucracy of the intention to quit. This notice is debated and then Authorization given.
End of membership will be two years later.
If you have ever read any of the conditions of the Treaty of Lisbon you would be horrified to be a bound to the E.U. and want out.
The economic difficulties of this latest vote will settle down.
If the negotiations between the U.K and Europe concerning the ongoing condition of the split and future relationships go sour then you may expect to see some real economic fireworks.

But then again, depends if the E.U. doesn't fall apart before the U.K.'s official two year departure arrives.

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Re: Will Brexit give Aussie Shoppers Price Savings?

Postby MichaelB » Sat Jun 25, 2016 7:40 am

Whatever the GBP exchange rate does, the Brexit vote has made the Au/Eu exchange rate a bit more favorable for my trip :mrgreen:
Every little bit helps !!!

Last week, the bank rate was 0.6209, now it's 0.6344 and will probably go up a bit more :D

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Re: Will Brexit give Aussie Shoppers Price Savings?

Postby metalrideroz » Sun Jun 26, 2016 1:00 pm

Merlin Cycles and Evans seem to have passed on at least some exchange rate savings. The items in my c r c/Wiggle shopping baskets are still the same price they were before.

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Re: Will Brexit give Aussie Shoppers Price Savings?

Postby Cycleops70 » Mon Jun 27, 2016 2:12 pm

trailgumby wrote:There's so much about that troll Nigel Farage that rubs me the wrong way. He handles the truth very loosely, and seems to revel in being inflammatory. If he becomes any kind of leader, the UK's implosion is virtually assured.

And then we have Trump in the US in much the same mould.

It's going to be an interesting ride.
If Nigel Farage gets a position of authority & Trump is president, then I predict;
Idiocracy (the film) will move from the 'comedy' shelf to the 'documentary' shelf.

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Re: Will Brexit give Aussie Shoppers Price Savings?

Postby Calvin27 » Mon Jun 27, 2016 3:42 pm

What about the Euro fluctuations. Makes bike24 a much nicer preposition.
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Re: Will Brexit give Aussie Shoppers Price Savings?

Postby il padrone » Mon Jun 27, 2016 3:50 pm

I have no idea about the troll Farage - he seems to be a xenophobe par-excellence. Very, VERY disturbing for the British.

Trump on the other hand reads like a Democrat stooge that has had the Republicans completely convinced, and now will go to pieces to assure Hilary of a victory.
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Re: Will Brexit give Aussie Shoppers Price Savings?

Postby RonK » Mon Jun 27, 2016 3:55 pm

il padrone wrote:Trump on the other hand reads like a Democrat stooge that has had the Republicans completely convinced, and now will go to pieces to assure Hilary of a victory.
So - much in the way the current Australian PM played the Monarchist stooge that had the republicans completely convinced and sabotaged the republican referendum.
Last edited by RonK on Mon Jun 27, 2016 6:32 pm, edited 2 times in total.
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Re: Will Brexit give Aussie Shoppers Price Savings?

Postby biker jk » Mon Jun 27, 2016 4:01 pm

My, my. The leftists heads are exploding with the "shock" Brexit vote. Imagine the left's apoplexy when Trump wins. :lol:

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Re: Will Brexit give Aussie Shoppers Price Savings?

Postby AUbicycles » Mon Jun 27, 2016 7:32 pm

Cam Whiting delves into the Brexit looking at the cycling market in the UK and also potential effects on cycling and pro cycling: BIKES AND BREXIT: WHAT DOES THE UK’S DEPARTURE FROM THE EU MEAN FOR CYCLING?
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Re: Will Brexit give Aussie Shoppers Price Savings?

Postby DavidS » Mon Jun 27, 2016 9:35 pm

Haven't seen any savings yet.

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Re: Will Brexit give Aussie Shoppers Price Savings?

Postby rodneycc » Mon Jun 27, 2016 11:10 pm

Yeah not the massive windfall I thought it was going to be. Typically only about a couple of dollars on a hundred dollar order so far that I can see.
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Re: Will Brexit give Aussie Shoppers Price Savings?

Postby il padrone » Mon Jun 27, 2016 11:46 pm

I predict that in the next 2-4 years I will STILL be buying more cycling gear from the EU than I am from the UK.
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Re: Will Brexit give Aussie Shoppers Price Savings?

Postby jasonc » Tue Jun 28, 2016 9:51 am

Cycleops70 wrote:
trailgumby wrote:There's so much about that troll Nigel Farage that rubs me the wrong way. He handles the truth very loosely, and seems to revel in being inflammatory. If he becomes any kind of leader, the UK's implosion is virtually assured.

And then we have Trump in the US in much the same mould.

It's going to be an interesting ride.
If Nigel Farage gets a position of authority & Trump is president, then I predict;
Idiocracy (the film) will move from the 'comedy' shelf to the 'documentary' shelf.
I thought idiocracy was already a documentary of the future

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