The UK fashion industry has a long history of grabbing the global spotlight. Fashion businesses looking to expand operations and grow often look to exporting to take advantage of overseas markets for their products.
Although a fashion business involved in exports has the potential to increase its revenue dramatically, any increases in profit will depend on keeping costs to a minimum. Exporting expenses can traverse the spectrum from shipping to logistics to stock and, while all of these are different, they all have something in common: the potential currency costs involved.
Fluctuating currency exchange rates can make overseas trading challenging for businesses as it hinders them in estimating overall costs. This could have a knock-on effect of costing them funds that would be better spent on other aspects of running a business. It is therefore important that fashion business take steps to minimise currency costs. A fashion business should:
- Know its budget rate
- Understand the consequences of currency fluctuations
- Ensure that they are not paying too much on each currency transfer through loose rates and additional charges
- Have a currency specialist keep them updated on market movements and provide them with the knowledge needed to benefit from these movements
- Work with a currency provider that understands the fashion business cycle
- Be aware of the best solutions available for their business
By using these steps as starting points, fashion exporters should be able to save time and money on their international money transfers.
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