UK fashion has a long history of grabbing the global spotlight. Fashion businesses looking to expand operations and grow should 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 – but what all of these have in common is the currency cost involved.
Fluctuating currency exchange rates can make overseas trading challenging for businesses, as it hinders them in estimating overall costs – and could cost them funds that would be better spent on other aspects of running a business. Here are six top tips to help fashion businesses minimise currency costs, from Alex Bennett, Fashion Business Specialist at Smart Currency Business:
1. Know your budget rate.
2. Understand the consequences of currency fluctuations on your day-to-day business.
3. Ensure that you are not paying too much on each currency transfer through loose rates and additional charges.
4. Have a currency specialist keep you updated on market movements and provide you with the knowledge needed to benefit from these movements and build the right strategy.
5. Work with a currency provider that understands the fashion business cycle.
6. Be aware of the best solutions available for your business, such as forward contracts.
“Using these steps as starting points, fashion exporters should ideally be able to save time and money on their international money transfers,” says Bennett. “Something as practical as this will help ensure that UK fashion businesses remain key players on the global stage.”