Marketing uncertainty looms in terms of Brexit. The best way to ensure you conform to new practises is by continuously updateing yourself with new information until the dust settles.
Alternatively you can follow industry leaders that will keep you updated on any necessary changes.
The AA (Advertising Association) has released a series of Brexit readiness publications to ensure that advertisers are ready once Brexit is truly underway. As time draws nearer, advertisers everywhere are concerned over the ‘no deal’ which would leave advertisers and businesses in a no-win situation. CNBC reported that if Britain were to exit the EU without a deal, legitimate products pricing could go up by over 10% thanks to scarcity.
The Grey Market
The ability to undercut means there is the birth of a ‘grey’ market. It’s not a black market, where it’s illegitimate or illegal goods, but legitimate products which are sold through unauthorized resellers. A great example are people who buy bulk items for resale through Amazon or EBay or another third party, and the items may be branded by a brand which isn’t sold locally (in the purchaser’s country).
Price Matching = Price Gouging
The trouble with a grey market is that the public has no idea when searching for a product or service, that they’ve reached a grey market site, with matching pricing. When they take this into a store who price-matches online prices, it could stand to lose retailers a great deal of money having to markdown far less than the item’s value due to an explosion in the grey market. More on that here: Grey Market.
Brexit & Data
Brexit affects data in significant ways, but not as it involves the GDPR for any UK business which receives personal data from the EEA (European Economic Area) and also includes the Data Protection Act of 2018. The fact that the UK will become a third country after Brexit, means there is no way to stop the data interchange between two areas perfectly, or as Brexit intended. There will be a mechanism in place to prevent data exchanges which should not occur, but it won’t happen immediately.
EU Citizens Working in UK
Brexit also affects any marketers who are EU citizens, allowing them ways to stay in the country if they choose to live and work there – giving until June 30, 2021 to make it happen, but with no deal, it’s only December 31, 2020. Given the freedom to move back and forth between countries with the UK in the EU, many people have gone to work in the UK – giving no thought to a future free of the EU. They have set up a dedicated support line at 0300 123 7379 or via the web at www.gov.uk/brexit.
Brexit & Suppliers
The supply chain is also affected by Brexit as it means that border crossings become much more regulated, and potentially involve extra import and export taxing which may not have been considered prior due to having ‘unrestricted movement’ access. This means that marketers will need to consider even the smallest of items they sell for commercial use or temporary export which nobody even thinks about.
A small list which isn’t complete:
- Pamphlets and other materials used for publicity
- Samples or branded ‘free’ gifts like yo-yos or pen lights
- Work related equipment of all types
- Goods related to non-profit activities like for education or science
- *Possibly even personal items
There is much to prepare for and an air of uncertainty out there in terms of Brexit, and what that means in a lot of areas, giving everyone plenty of time to adjust and have their plans solid prior to the gaps when nobody is sure what will happen, and new plans are created & implemented in the UK.
Knowledge is power, so knowing what to do early – is a big win!