The year of a RAT, a year of creativity, wealth generation and quick thinking with a determination to be successful. As we write this article over 78,000 people have been infected with the Coronavirus and almost 2500 deaths. Our thoughts go out to all those affected across the world. This virus is already more severe than the SARS virus back in 2003. The Chinese have certainly been amazing and quick thinking, building a number of hospitals in a matter of days and even though these were more of a prefab construction they filled an immediate need for more beds. We have worked with the Chinese for many years and their ability to think long term and their practical approach will work to their advantage as they work through this terrible time.
Record breaking migration
Did you know that Chinese New Year is the world’s largest human migration with nearly 400m Chinese moving from the cities to rural parts. That’s 8 times more than America who go home for thanksgiving. Workers return home to spend time with families, factories close and production grounds to a halt. Here in the UK we have always had to make allowances for this time of year and plan ahead in our businesses. This year due to the Coronavirus we are certainly starting to see delays in shipments, stock shortages and we are sure, promotions potentially missed.
What would we be doing now!
We would start by looking at all products sourced from china, review our stock levels, re-view promotional items and where necessary think about changing to locally sourced products for the time being. With our key products we would look at alternative sourcing options maybe even have a look at our advertising budgets and reduce these where necessary.
One thing for sure in a situation like this, we would not blindly stick with any plan that is in place right now. You have to be ready to move with the cheese! (ref: Who Moved my Cheese by Dr Spencer Johnson)
Whilst on the subject of sourcing products elsewhere, we cannot avoid the subject of Brexit. The exchange rate and the weak pound to the dollar that we have endured for the last 3 ½ years has not responded positively even with the fact that we are officially out of the EU. Therefore, there is little chance right now of a currency windfall in the short term that will reduce the cost of goods on our dollar related imports. All of your cost reduction activities need to continue.
We may find that it will take the next 10 months of negotiations and hopefully the clarity of the final deal in order for it to have a positive impact in our currency. This does bring with it an opportunity to benefit from your export business and growing this should be part of your business strategy right now, in fact we have several clients who are increasing their export businesses with much success.
To finish, lets remind ourselves that it is the Year of the Rat, a year of creativity, wealth generation and quick thinking with a determination to be successful.
Time to Make It Happen!.
Clive and Kerry
Daley Hub Limited