The Wig Report

The Wig Report

A customer of ours runs a retail costume business and they wanted to “cut out the middleman” in their wig department. The following questions came up:

Where are wigs being imported from? – Identifies suppliers of scale

Who are my competitors buying from? – Identifies suppliers that make quality product

In 2015 there were over 1,900 metric tons worth of wigs shipped to the US by sea. The top five importers (by country) of wigs are:

  1. Mexico – 68%
  2. US – 25%
  3. Chile – 4%
  4. Peru – 2%

In the US, there were many buyers, but the interesting ones for my client were:

  1. JBS Hair
  2. Dollar General
  3. Spencer Gifts
  4. Chade Fashions

We checked to see if any of the suppliers worked with all of the above customers

  1. JBS Hair
    1. Perlcoin (Hong Kong)
  1. Dollar General
    1. Beijing Kang Jie Kong International (China) – also supplies WalMart

This is an expediter used by many large corporations, they may not be suitable.

  1. Spencer Gifts
    1. APL Logistics China

This is an expediter used by many large corporations, they may not be suitable.

  1. Chade Fashions
    1. Sun Chang Indonesia
    2. Evergreen Products Factory (Bangladesh)
    3. PT Utama Yurim Indah (Indonesia)

With options to work with Chinese (mainland and Hong Kong), Bangladeshi, or Indonesian suppliers, the customer was provided contact information so they could order samples and start the relationship.

They asked for a deeper dive into the trade links of Evergreen Products Factory, since wigs were one of their top shipments. The following chart show Evergreen’s top five customers (blue dots), followed by the customer’s five top suppliers (yellow dots on right side).

Evergreen-Products-Factory-(Bd)-Ltd.

This report provided a base for the costume retailer to look into their own production for wigs, allowing them to “cut out the middleman.”

Are you looking for suppliers?  Let us know, we are running free searches in exchange for feedback.

 

 

 

Weekly Importer / Exporter Analysis 8-24-15

abandoned bridge

There are only so many bridges you can build to keep an economy running.

Mixed results as markets try to figure out if China is really in trouble or if their markets are just volatile.  Shots being fired in Korea also have markets on edge.

$30 a barrel for oil?  It appears to be a possibility and Russia is feeling the hurt.  Putin is becoming the lender of last resort as he taps a sovereign wealth fund to help ailing companies cut off from global finance.  How long can he last if China is really in a contraction and oil prices continue to fall?

Other US economic data for this week is here.

Who won the battle last week, between the USD and five currencies?  The perspective is strictly from America, so if against the Aussie Dollar, United States importers won, that also means Australian exporters won as well.  I am changing the sign convention: negative percentage changes mean that exporters have the advantage while positive numbers show the advantage for importers.

Currency Week Ending 8-21-15 Weeks in a Row Weekly Change YTD Change
Australian Dollar (AUD) Importers Win! 0 0.5% 10.33%
Canadian Dollar (CAD) Importers Win! 0 0.1% 11.15%
Euro (EUR) Exporters Win! 1 -0.6% 7.06%
British Pound Sterling (GBP) Exporters Win! 1 -0.5% -0.71%
Japanese Yen (JPY) Exporters Win! 1 -0.8% 2.98%

Thanks,

Damon

PS- Photos from our friends at Lobster or Unsplash

Weekly Importer / Exporter Analysis 8-17-15

13918264820_fe7d343d8d_o Pile of Yuan

I noticed your pile of cash is 4% less than last week.

Exporters sweep the week in a surprising change of pace.  The shakeup of an unexpected devaluation of Chinese yuan of 4% caused traders to think that the Federal Reserve might postpone a rate increase due is September.  After some encouraging remarks from the Chinese government, it looks like the markets are back to business as usual.

Oil prices continue to fall as OPEC members produce above quota and US refiners are adding rigs.  This one – two punch is really hurting Russia, Venezuela, and Nigeria as their taxes are oil dependent.  Experts expect the bottom to come this fall as someone will have to cut back to avoid losses.  In the mean time, enjoy the low gasoline prices.

Other US economic data for this week is here.

Who won the battle last week, between the USD and five currencies?  The perspective is strictly from America, so if against the Aussie Dollar, United States importers won, that also means Australian exporters won as well.  I am changing the sign convention: negative percentage changes mean that exporters have the advantage while positive numbers show the advantage for importers.

Currency Week Ending 8-14-15 Weeks in a Row Weekly Change YTD Change
Australian Dollar (AUD) Exporters Win! 1 -0.4% 9.88%
Canadian Dollar (CAD) Exporters Win! 0 -0.3% 11.07%
Euro (EUR) Exporters Win! 0 -2.0% 7.69%
British Pound Sterling (GBP) Exporters Win! 0 -0.6% -0.22%
Japanese Yen (JPY) Exporters Win! 0 -0.2% 3.75%

Thanks,

Damon

PS- Photos from our friends at Lobster or Unsplash

Weekly Importer / Exporter Analysis 8-10-15

10311286_846546912026523_989177911_n Ukraine

Our feelings as well

Importers win across most currencies.  Expect the trend to continue as markets price in an interest rate increase due in September.

Oil remains a driver for currency prices.  The price of oil continues to drop as US drillers deploy more rigs.  Long dated oil futures are also dropping in price, suggesting markets are pricing in a future of low oil prices.

Ukraine suggested that Eastern rebels used tanks in attacks last week.  Those attacks were rebuffed.  This conflict is looking to flare up like bad rash.

In Syria, the US has setup shop in Turkey, allowing for longer and more deadly flight plans.  This is increasing pressure on both ISIS and Assad.

The US jobs report came in with a healthy 215,000 new jobs in the economy.  Despite markets reacting to future increases in interest rates, this is a positive development in the US economy and will continue to help importers into the future.

Other US economic data for this week is here.

Who won the battle last week, between the USD and five currencies?  The perspective is strictly from America, so if against the Aussie Dollar, United States importers won, that also means Australian exporters won as well.  I am changing the sign convention: negative percentage changes mean that exporters have the advantage while positive numbers show the advantage for importers.

Currency Week Ending 8-7-15 Weeks in a Row Weekly Change YTD Change
Australian Dollar (AUD) Exporters Win! 0 -0.6% 10.24%
Canadian Dollar (CAD) Importers Win! 0 0.8% 11.42%
Euro (EUR) Importers Win! 1 0.2% 9.65%
British Pound Sterling (GBP) Importers Win! 0 0.5% 0.43%
Japanese Yen (JPY) Importers Win! 1 0.5% 3.98%

Thanks,

Damon

PS- Photos from our friends at Lobster or Unsplash

Weekly Importer / Exporter Analysis 8-3-15

Flower Calm

A calm week in the foreign exchange markets.

Last week was a bit of calm, with small moves across the board.

Oil is still dominating financial news as the price continues to drop.  This will continue to push the value of dollars up, helping importers.

The US has quietly increased its Syria exposure by providing air support to any enemy of US trained rebels.  That includes the forces of Assad, which can get messy very quickly.

The US jobs report is due on Friday, with the consensus looking for a greater than 200,000 job gain.

Other US economic data for this week is here.

Who won the battle last week, between the USD and five currencies?  The perspective is strictly from America, so if against the Aussie Dollar, United States importers won, that also means Australian exporters won as well.  I am changing the sign convention: negative percentage changes mean that exporters have the advantage while positive numbers show the advantage for importers.

Currency Week Ending 7-31-15 Weeks in a Row Weekly Change YTD Change
Australian Dollar (AUD) Importers Win! 5 0.7% 10.82%
Canadian Dollar (CAD) Exporters Win! 0 -0.1% 10.66%
Euro (EUR) Importers Win! 0 0.3% 9.49%
British Pound Sterling (GBP) Exporters Win! 0 -0.5% -0.16%
Japanese Yen (JPY) Importers Win! 0 0.2% 3.49%

Thanks,

Damon

PS- Photos from our friends at Lobster or Unsplash

Weekly Importer / Exporter Analysis 7-27-15

2730279467_0a5329de86_o (2) oil

Oil prices affecting a currency near you.

Prices have been choppy as the post-Greek bailout is being weighed by markets.  As US interest rates rise expect importers to benefit as other governments do not have the scope to match increases.

China released some economic data that has markets disturbed.  In China, stock markets tumbled 8% today on news that manufacturing is shrinking.  How does this affect currency? The cause and effect are contested, but, at least recently, the value of a dollar and the price of oil move inversely.   So when dollars increase in value, the price of oil goes down.  This makes sense intuitively, since oil is priced in dollars and foreign producers have costs in other currencies.  What happens when demand causes a decrease in the price of oil?  Some people expect that the dollar will strengthen, but not because of the price drop, but because it makes the US economy more competitive, and thus dollars more valuable.  The manufacturing news in China will put downward pressure on global oil prices, which reduces gasoline prices here, which puts more money in US consumers pockets, and spurs economic growth.  Or so the theory goes.  If correct, that is another factor that bodes well for US importers and ill for exporters.

Other US economic data for this week is here.

Who won the battle last week, between the USD and five currencies?  The perspective is strictly from America, so if against the Aussie Dollar, United States importers won, that also means Australian exporters won as well.  I am changing the sign convention: negative percentage changes mean that exporters have the advantage while positive numbers show the advantage for importers.

Currency Week Ending 7-24-15 Weeks in a Row Weekly Change YTD Change
Australian Dollar (AUD) Importers Win! 4 0.6% 10.06%
Canadian Dollar (CAD) Importers Win! 4 0.3% 10.78%
Euro (EUR) Exporters Win! 0 -0.8% 9.11%
British Pound Sterling (GBP) Importers Win! 0 0.5% 0.37%
Japanese Yen (JPY) Exporters Win! 0 -0.2% 3.33%

Thanks,

Damon

PS- Photos from our friends at Lobster or Unsplash

Weekly Importer / Exporter Analysis 7-20-15

Euro Sign 4737133918_4642d16113_o (2)

Not surprisingly, importers gained against most currencies last week.  Even though there was a Greek debt deal, future US interest rate increases will continue to benefit US importers and hinder US exporters.

The Greek debt crisis has been partially resolved.  Greek banks opened today to a relieved public.  The cost of the deal to Greece and Europe has yet to be fully accounted, but it is certain that if Greece had just maintained the previous program, they would have been way better off.  By waiting to the last minute for Germany to call their bluff, they did real damage to their banks.  These banks will continue to be hobbled for years, restricting lending to small businesses, and thus hurting growth.  Everyone knows that the crisis is not really over, there will be a debt haircut at some point in the future.  Hopefully Greece can get their act together and really implement changes, not to pay back European debts, but to actually grow a real economy for their people.

The Iranian nuclear deal looks like it will be implemented.  Economic interests are already lining up.  Germany sent their Economic Minister to Iran yesterday, a mere four days after the deal was agreed to.   The delegation seeks to reopen severed trade ties.  Germany gave up half (~$2 billion) of their Iranian trade to enforce sanctions and both economies can use the boost.  It is rumored that even McDonald’s has filed an application to setup shop in Tehran.  Hopefully renewed trade will keep Iranian nuclear ambitions in check.

Other US economic data for this week is here.

Who won the battle last week, between the USD and five currencies?  The perspective is strictly from America, so if against the Aussie Dollar, United States importers won, that also means Australian exporters won as well.  I am changing the sign convention: negative percentage changes mean that exporters have the advantage while positive numbers show the advantage for importers.

Currency Week Ending 7-17-15 Weeks in a Row Weekly Change YTD Change
Australian Dollar (AUD) Importers Win! 3 0.5% 9.35%
Canadian Dollar (CAD) Importers Win! 3 1.8% 10.42%
Euro (EUR) Importers Win! 3 1.4% 9.95%
British Pound Sterling (GBP) Exporters Win! 0 -1.5% -0.21%
Japanese Yen (JPY) Importers Win! 0 2.0% 3.56%

Thanks,

Damon

PS- Photos from our friends at Lobster or Unsplash