Many UK fashion businesses have  recently been looking to increase margins by switching to paying their Chinese suppliers in Yuan.

According to ChinaDaily.com, by making the switch Chinese suppliers have less of a need to build in a buffer in costs to guard against currency fluctuations – particularly in longer term contracts. This means suppliers are more likely to offer up discounted deals and a greater pool of suppliers may be willing to supply in turn increasing competition.

With a tough year ahead it may be worth relooking at the payment and currency provisions in your supply arrangements again to see what additional strategies like this can be applied.

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By: Elle Todd
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