[HUG ] Re: Dollar fall kills Hasselblad? (and Leica?)

It's no use blaming Leica or Hasselblad's poor performance on the decline in the US dollar. European companies have only themselves to blame for declining sales. Leica, Hasselblad,CZ should have switched their sales emphasis from the US and Western Europe to Asia and Russia where the growth is.
I am not sure if the list members are aware of the enormous economic change that is now occurring. For just one example see: 

http://online.wsj.com/public/article/SB118677584137994489.html
China, Russia, Brazil, India are areas where luxury goods makers need to focus their efforts if they are to do well.
----- Original Message ----- From: "Tom Just Olsen" <tjols@xxxxxxxxx> 
To: "V HASSELBLAD" <hasselblad@xxxxxxxxxxxxx>
Sent: Sunday, 27 April, 2008 5:21 PM
Subject: [HUG ] Dollar fall kills Hasselblad? (and Leica?)
Now the effect of the low US$ and weaker US consumer spending hits European industries. Once thriving European industries that has prospered from exports, first of all, to the US now see deep trouble ahead. Hasselblad is typical of the sort of businesses that just might die from the loss of the US market.
In my local currency, NOK (Norwegian Kroner) the US$ has almost halved it's value, from NOK 9,95/$ back in 2002 to now NOK 4,95/$ - practially the same relation in Swedish Kroner. Compared to the Euro, the dollar has fallen close to 60% in less than six years. Experts say that an even lower US$ must be expected.
Typically, the Hasselblad CFV (and Leica M8) - intended to be 'affordable' on the US market, now has turned out to be forbiddingly expensive - in dollars. Still they are within reach over here, but the European market is only half the customer base for these tiny producers. With the other half of the customers gone - the folks in USA, the producers must increase the price even further to stay afloat.
The recent dollar fall spells problems for most European exporters - From car producers to cruise ship operators. For some of them the Chinese market might offer an alternative, but not to all. Hasselblad and Leica is very typical of this category that can't expect to compensate a traditional & good US market with new-world-type-market like China.
Don't blame the managment of Hasselblad (and Leica). They are victims of events far outside their own control. Like most of us. 

Tom of Oslo




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