vendredi 16 janvier 2015

After SNB shock, 'Swiss Made' may mean more expensive

"Swiss Made" has traditionally stood for quality, precision and reliability. But after a shock move to scrap the cap on the franc, it could convey a less attractive message: Made more expensive.



The decision by the Swiss National Bank, after three years of holding down the franc's value, was met with indignation by many small-to-mid size companies which now face lower revenue from exports.



Unlike bigger multinationals based in the country, smaller companies tend to produce a higher proportion of their goods in Switzerland, meaning they lack the spread of costs in other currencies that could mitigate the franc's surge.



Many face the prospect of cost and price cuts to stay competitive.



"I trust you have a strong plan that will help all of us in the long run," Edouard Meylan, chief executive of watchmaker H. Moser & Cie wrote in a scathing open letter to the SNB President Thomas Jordan, saying he had already received calls from retailers cancelling orders.



Small and medium-sized companies were responsible for around a fifth of all Swiss exports in 2012, according to a survey by Credit Suisse. They emp




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After SNB shock, 'Swiss Made' may mean more expensive

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