German shop owners, e-commerce pros, mail-order retailers: if you are not yet active in the Swiss market, now is the time to get in. Your chances of grabbing a slice of the Swiss e-commerce pie have never been better. And if you want an experienced consultant and advertising partner at your side, you have come to the right place.
Sorry to get straight to the point, but this message is too important to hide at the end of the article. If you are interested in the full story, read on.
What happened?
Early last Thursday (15 January 2015), the Swiss National Bank (SNB) announced it was abandoning the minimum exchange rate of the Swiss franc against the euro. With that, the SNB ended the strategy it had followed for three years of not letting the exchange rate fall below 1.20 francs to the euro. The SNB decided to decouple because it had simply become too expensive to support the European Central Bank’s devaluation policy, and with the currency peg in place there was no alternative to doing so. Now the Swiss have regained sovereignty over their currency.
The news had barely crossed the wires when the markets reacted with something close to panic. For a short time, the euro fell by almost 30 percent, dropping below parity with the franc. Some brokers and hedge funds are staring bankruptcy in the face because the SNB’s surprise move wiped out their bets on the franc. Bargain-hunting Swiss quickly “raided” the euro reserves of bank branches near the border and went shopping in Germany with the cheap money. Which brings us to the crucial point.
Consequences for shop owners
The Swiss franc is gaining value against the euro. That makes shopping in Germany more attractive for the Swiss.
Retailers who bring their offer to the Swiss market now have a big price advantage over Swiss competitors. What is more, prices in Switzerland have traditionally been higher than in Germany. So retailers can achieve higher margins despite lower prices.
The umbrella association Handel Schweiz already senses what lies ahead for its members. Pressure from abroad is rising, while export opportunities are shrinking because of the strong franc. Its members now have to work twice as hard to hold on to their market share.
One person’s loss is another’s gain. The “other” here is the German shop owner. The opportunity is here now, and now is the time to seize it. The market will start moving anyway, whatever we think of the situation and whatever we advise. Swiss customers will make sure of that themselves. They will not only shop across the border but also look online for cheaper alternatives.
And now, a word from our sponsor
We made our offer loud and clear at the start, so we have no qualms about repeating it at the end: if you are looking for an initial potential analysis, a strategy and/or help with implementation, we are the right partner. We advise and support German retailers in reaching their target audiences and winning new customers in Switzerland. Our teams in Meerbusch near Düsseldorf and in Zurich have more than enough experience. Our reference list includes Swiss and German e-commerce businesses such as ALDI Suisse, BUCHER Reisen, FTI Travel, Hotelplan.ch, Les Ambassadeurs, Travel.ch, Weight Watchers and more.
We look forward to hearing from you.
