Currency swings hit brands and suppliers
The Swiss National Bank’s decision to unpeg its franc from the euro in mid-January sent shockwaves through the business world, effectively making Swiss exports substantially more expensive than they had been.
A number of outdoor brands and suppliers are based in the country and have said they will have to revisit budgets to try to find a way to counter the move. Schoeller expressed to sportstextiles.com that the changes will have a "significant impact” but that it would find "collaborative solutions”.
The Swiss franc is not the only currency casuing headaches. The movement of the euro has also affected many global brands.
Mathias Basedow, communications manager for the European Outdoor Group, told us: "With many suppliers working in US dollars, a weak euro can have a considerable impact on costs for brands. There are mechanisms in place to handle small fluctuations, but there is obviously a limit on that, and many brands are concerned about the recent developments, particularly on the apparel side.”
See the March /April edition of WSA, available online and in print early next week, for a look at the ramifications.
Image: Swiss outdoor brand Odlo
