With Asian stock markets in free fall last week and the steady decline in value of Russia’s two main exchanges, luxury and fashion brands fear they might have to wave goodbye to any growth they were seeking from emerging markets.
But will they?
Despite the grim news from nearly all corners of the world, some analysts and industry principals said brands may not suffer that much from any downturn in areas such as Russia, China, India and the Far East.
“In the shorter term, we’re likely to see faster economic growth in Asia. Europe, the U.K. and the U.S. are already in recession, so the potential for growth is better in the East", reported by a WWD reporter on October 13, 2008.
If this reporter waited to research a little more, he wouldn't have written that. Asia is entering recession whether we like it or not but many choose to ignore or close an eye. It's reported that the Indonesians have been exchanging their hard cash for gold bullions or gold coins and they even closed their stock exchange for 3 days because they wanted to avoid any further slump in the stocks when US stocks came tumbling down last week.
Japan, too is hurting and in today's news it announces that Britian is reserving U$2 billion for 3 banks that's going under and one that I can recall is Lloyds Bank.
I think fundamentally what a business owner would have to do is to look at how the business can offer more value-added services or products with an attractive price to its existing customers. Suppliers of fashion items from fabric, zippers, buttons, embellishments, machines, scissors, threads and everything that is needed in making your clothes will also have to do some cut-backs to sustain their businesses.
If markets in the emerging region which technically are countries in the South East Asian region is predicted to be strong in times of the great world recession, then SEA must have done something right to give out that impression or else this plague will catch up real soon and before you know it, you're out!
Though oil prices have dropped to U$70 a barrel but that is not changing the cost of food and consumables or even lifestyle. In times like this I find myself adjusting to my spending, to cut back but somehow I keep going out to clubs for drinks with friends almost three to four times a month. An activity that I had cut-back for nearly two years but my conclusion is that I want to find an outlet to forget about what's happening out there, the recession, the slow-down in retail business and generally the gloom around. So the idea of clubbing with some friends at a upmarket club sounds too good to pass up right now.
Just recently I attended a weekend birthday outing, a high-socialite party and an auction party; the club or venue was packed with people that's probably share the same sentiments like me. In plain English, we want to drown out the gloom and want to stay happy any chance we can. Does that sound like we need a shrink to consult? Are we going bonkers? Or some would say lalaland!
No, it's a natural emotion to feel when every morning you pick up the newspaper and see negative news not in your own backyard but around the world. It's alarming especially I just read that Korea is predicting more suicides to happen when they hit steep recession.
So what do we do? The obvious is to tighten our belts, spend wisely, get out debt or at least minimize as much as possible, don't borrow till you know you can afford it and continuously think creatively how to survive this world gloom we face today, tomorrow and who knows when it will end.
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