The Front Lines of a Recession

A friend of mine that runs a fairly high profile consumer goods company. Here is what he wrote about being on the front lines of currency devaluation, inflation, and the “R word”:

Well here is the news from the front lines regarding inflation at the micro level:

  • We have increased some prices, and now when setting prices are setting them higher than usual in anticipation of marginal pressure from retailers and a global slowdown.  We are also trying to decrease inventories, slowing down our purchasing.
  • We are extremely concerned about RMB appreciation, a driving force of the above.   This will cause tremendous, maybe unanticipated pressure on prices globally.
  • Quotes from our Chinese suppliers are only guaranteed for the smallest of windows.  90 days sometimes, when it used to be a year. 

There is a mini-panic in China right now in terms of the three-way, simultaneous impact of a US consumer spending slowdown, new expensive labor laws, and an appreciating RMB. 

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Adeo Ressi is Founding Member of TheFunded.com, an online community of 12,000 CEOs to research, rate, and review funding sources worldwide. Adeo also runs the Founder Institute, a mentoring program that helps entrepreneurs launch hundreds of world-class companies each year. The Institute is the eight start-up that Adeo has founded or built, four of which were acquired and three of which are still operating.
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