The Cutting Room – grey skies of recession, storming export market


Media crunch

You can’t pick up a newspaper, turn on the telly or browse the web these days without being whacked square in the face by a bold headline or grim looking news presenter doling out the latest on the declining British economy.

The term ‘credit crunch’ is a cliché already. So what are we in the mobile industry to make of such impending economic disaster?

We already know mobile retailers have taken the opportunity to wave around jam-packed offers to woo budget conscious consumers, and reverse slowing footfall, whilst simultaneously restructuring staff pay.

There are redundancies all over the shop, too.

Stuck in the middle

But what of the industry’s middlemen?

Mobile traders who have taken it all on the chin and reported that the not-so-favourable market conditions were in fact ripe for European punters putting their orders in for UK stock – be it from distributors or notorious box breakers.

Those who only trade locally say they feel little effect – perhaps until they embark on their family holiday.

Seems like a stark change of subject, but it’s estimated a family taking £1,000 to a euro-nominated country will now receive more than €200 (or about £163) less than they would’ve a year ago.

Last November, with the euro worth 69p, £1,000 would buy €1,450. Today, it would only get you around €1,229.

The point is, as more and more people are deterred by the exchange rate from travelling to Europe, they’re bound to spend more money here at home, arguably giving the economy a boost in some fashion, along with the rise in products from the UK making their way across European borders.

One of the cheerful chaps in distribution shrugged off the doom and gloom headlines by suggesting, "you can talk yourself into a recession".

Maybe with all these good vibes floating around, we can talk ourselves out of one?