The economic data from the UK can be unrelentingly bleak: At 8.7 percent, inflation is the highest in the G-7, a group of large, developed economies. Britain’s economy is still smaller than it was pre-pandemic, a distinction shared only by Germany in the G-7. The Bank of England last month raised interest rates to their highest level in 15 years.

Oh My Cream is choosing to focus on the positive. The clean beauty chain launched in France in 2013 and entered the UK in November with two stores in the affluent West London neighborhoods Notting Hill and Chelsea. They’re not the only ones with ambitious plans for Great Britain. In the past few weeks alone, luggage brands Nere and July, beauty labels Haus Labs and The Outset and fashion brands Hill House Home and Rouje have all entered the UK. In October 2022, beauty giant Sephora landed in the market with a website before opening its debut store in London this March.

Even if the UK economy is stuck in a rut, it retains an allure for international brands looking for their next market to conquer: It’s the biggest predominately English-speaking economy after the US, and it’s a sizeable market for fashion and beauty. Its wealthiest shoppers are concentrated in London, also a global tourism destination.

“In London, I can open 15 or 20 stores, whereas in Germany … if I want to do a dozen stores, it has to be in many different cities,” said Juliette Levy, Oh My Cream’s founder and chief executive.

The disconnect between the data and the mood on certain high streets also speaks to a global trend where consumers’ wallets have proven unexpectedly immune from the often dismal reality of the wider economy. In the US, a tight labour market and savings accrued during the pandemic have helped keep retail spending buoyant. In the UK, wage increases, high employment and an energy crisis that proved less punishing than expected have people feeling more secure, said Deutsche Bank analyst Adam Cochrane.

The question for consumers, and the brands chasing their business, is whether the good times can last. Higher interest rates and the return of colder weather, which are likely to send energy bills soaring again this winter, could yet bring the party to a crashing halt.

“At the moment people are feeling good,” Cochrane said. “There is an underlying willingness to get out and spend money — even if we know in six months’ time you might have to refinance your mortgage.”

Small Brands, Big Opportunity

Oh My Cream’s move into the UK wasn’t without its bumps.

Post-Brexit, shipping online orders from its French warehouse to British customers would be costly and take up to two weeks.

“The logistics is a bit more complicated because of Brexit, but there’s nothing impossible and [the UK] still has a lot of advantages,” Levy said.

Among those advantages: The UK remains one of the largest markets for fashion and beauty within Europe. Founders say that shoppers in London are open to trying new brands and keen to discover new products.

Nere, launched by Australian bag retailer Strand in 2022, introduced its UK e-commerce website last month and has plans to open up a store later in the year. Group CEO Felicity McGahan says the brand is already seeing “a lot of alignment with Australians” in terms of purchasing patterns and was surprised how receptive UK shoppers were to the brand’s more colourful assortments.

“That’s what all the brands launching there are looking for: The attention of people who have so many options, but who still have a very high purchasing power and are curious about new concepts,” Levy said.

Brits Are Rationalising, But Still Spending

Despite concerns around the cost of living, there are plenty of consumers still looking to splurge, for brands that know where to look. Skyrocketing rental prices are seeing some Gen-Zs choosing to live at home with parents for longer — leaving those who have jobs with more disposable income, for instance.

Since launching its British website in May, Hill House Home sales have “exceeded expectations,” thanks in part to clothes that can perform double duty in tough times, said CEO Nell Diamond. The brand sells its signature “nap” dresses off the premise that they can be dressed up for events or dressed down to lounge at home.

“If they’re going to spend money, they want to spend money on things that they’re actually going to wear and not just sit in their closet,” Diamond said.

In the case of Oh My Cream, customers have been all too ready to splurge on £200 ($257) Augustinus Bader creams and £130 Tata Harper serums, Levy said, adding that treatment rooms offering bespoke facials have been booked months in advance. The company is planning to open a third store in London’s Hampstead neighbourhood before the end of the year, followed by Marylebone and Islington in 2024.

That’s not to say the economic environment isn’t impacting shoppers. From transport costs to food shops, prices are rising visibly. If you look at volumes, shoppers are getting less for the money they’re spending, said Cochrane.

In a post-Covid world, hunger for experiences, travel and events is still sky high, said Nere’s McGahan. Even amid uncertainty, consumers will still find ways to make the most of a life without lockdowns.

“Everyone’s looking for a bit of joy and optimism,” McGahan said. “Travel and experience and getaway has never been more important ... I believe people will travel somewhere — I think they’ll right size the trip for their budget.”