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    Italy Shoe Companies Speed Up Expansion Of Overseas Markets And Plan New Outlets

    2015/1/13 18:01:00 19

    ItalyShoe CompaniesOverseas Markets

    The euro continued to depreciate in recent months and hit a nine year low on Wednesday. For those exporting to or outside the euro zone, the benefits of the depreciation of the euro can completely offset the worries caused by low inflation. Favre Michel, chief financial officer of Faurecia SA, a French auto parts manufacturer, said the depreciation of the currency had benefited his company.

    In recent years, European auto sales continued to slump. In order to maintain competitiveness, the company had to reduce its selling price by about 1.5% per year. However, the low Euro rate and the fall in energy, plastic and metal prices will help the company expand its profit margins. He said the lower the inflation rate, the better, because that means that the cost increase is limited.

    De Cesar de Cesare, chief executive of French retailer Printemps, said that its flagship store in Paris barely managed to achieve 1-3% growth in 2014, thanks to the sluggish domestic consumer confidence. But he believes that the depreciation of the euro will improve the performance in 2015. He expects that the increase in consumption of foreign tourists will make up for the decline in consumer demand in France. The number of passengers is expected to increase in the future, and domestic consumption demand will surely shrink.

    But the easing effect of the euro may only be temporary, especially for companies that need to import raw materials or components from abroad, because the euro is priced as the euro falls. Raw material And parts are also more expensive. Tim Bendig, spokesman for Lenze SE, a German automation company and auto supplier, said that the positive effect of the euro weakness could be seen in the short term, but this positive effect will be offset by the increase in import costs by the end of the year.

    The sharp Euro depreciation At the same time, the strategic thinking of some companies has been challenged. Geox, a shoe and clothing company in Italy, is now trying to accelerate its expansion plan in the us with the current exchange rate conditions. At present, North American sales account for only 6% of the company's total revenue. In the short span of a few months, the world is very different, says Giorgio Presca, CEO of health. He said all the plans need to be discussed very carefully.

    Exchange rate fluctuations Russia The sharp decline in sales and the sluggish sales in Latin America have made it more urgent for the company to increase its income in the US. Presca said: Although our business in the US market is very small, the market can not be ignored now. The current US dollar exchange rate has definitely increased the attractiveness of the US market.


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