SYDNEY: Designers were advised that it is still essential to monitor currency exchange rates when manufacturing offshore, despite the easing of the global financial crisis in Australia.
At a Brand India Trade Fair industry seminar, Westpac bank foreign exchange expert Kevin Gallenhawk said caution was needed when exposing a business to foreign currency instability. The increase in offshore manufacturing and importing meant this issue was particularly prevalent to Australian designers.
"You need to realise you are exposed to any currency movements that take place," he said.
"Say a move of ten per cent happens on those currencies - that could wipe out total profit on that shipment."
He advised that inexperienced importers should seek professional guidance to limit risk.
The Brand India Trade Show was held in Melbourne last week and in Sydney this week. The event featured a number of Indian manufacturers across fashion, textiles and home furnishing products.
For a full report pick up the December 4 issue of Ragtrader.