South African wine exporters adversely affected by the strengthening of the Rand were advised to “bite the bullet” and not give up their foreign listings as they would find it extremely difficult to win them back again.
This is according to John Gainsford, international marketing consultant for DGB, at a marketing symposium near Stellenbosch today. The Rand, which crumbled to R19 to £1 in late 2001, has strengthened over the past eight months to R13 to £1, causing many smaller wineries and negociants hardship.
Gainsford, one of a handful of exporters operating out of the Cape in the late 1970s, also warned many of the newcomers to the export market that they should not look at quick fixes and tricks when marketing overseas, but to rely on doing the basics right.
He was sharing the podium with ABSA Bank’s chief strategist, Matthys Strauss, who underlined the fact that the South African Rand was a complex currency. It was neither a pure commodity currency, nor a pure emerging market currency nor a pure African currency. As a result people experienced complications when dealing in it.
Gainsford warned newcomers to ensure they understood what was required when tackling the export market, such as establishing where they wanted to be, how to approach that market, know what their aims were and establish what possible problems existed.
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