In addition to a price increase, other options are also being evaluated, such as cutting expenses or reducing profit margins.
Importers are evaluating possible price increases under new measures that will come during the new term of the elected ,, a measure that, according to experts, could boost inflation. Many companies have already had to adopt strategies during the former president’s first term. In addition to a price increase, other measures are also being evaluated, such as cutting costs, reducing profit margins or diversifying suppliers so as not to depend solely on China “We considered all the levers we have at our disposal and, in 2019, the price was one of them,” said Elf Beauty CFO Mandy Fields.
According to Peter Quinter, a partner who advises companies on commercial issues at the law firm Gunster, companies will look to other countries for supply chains, such as Vietnam, South Korea, Malaysia and Indonesia. “Companies can try to reduce their costs by producing the same product manufactured in China,” he explains. Regarding the price increase, Sketchers USA CFO John Vandemore said it is possible that the tariffs will worsen the inflation problem. “We think, overall, that this would be a bad result for consumers,” he highlights.
Published by Luisa Cardoso
*With information from Estadão Conteúdo
