Cheaper Reps with Chinese Devaluation?

[submarinerblue 8]

So, now that China has devalued its currency to make its exports cheaper are we going to see a reduction in rep prices? The dollar and the euro are now worth more in Chinese currency.

[Moondustesp 136]

Lets hope so but doubt it

[Not Quite Dead 9]

I would not hold your breath

[Left Coast Guy 24]

I'd venture to guess the dealers keep their prices where they're at....

[Robin195959 2]

I suspect the transactions are done in Dollars so no relevance if so unfortunately.

[Venomous 0]

I doubt it.

 

If anything, the factories are probably rubbing their hands together as they'll get more per watch due to exchange rate.

 

V

[onzenuub 305]

Nope, prices wil go up because of that.

[Realism 72]

Rofl... costs more to buy that new ferrari now... so you'd have to pay more too

[GoW13 19]

Have you ever heard of a company, that reduces their prices in favor for the clients?? Maybe there are some, but definitely no rep factory will do so^^

[NFleischer 4,355]

They already have- didn't you see the TT Sub with Asian movement for $600+??!!

[JazzV3 1]

Disclaimer: I am not an economics major.

 

That said, I see it this way.

Due to the fact the TD's price in dollars and if we pay in dollars, they would be the beneficiary of the transaction because they can convert those dollars into slightly more yuan than prior to the currency devaluation.

 

If the yuan value continues to fall, the factories may consider raising prices to realize a similar value for their wares. The dealer would have to pay the factory more for the watch and might be forced to pass along the price increase. Since the dealers are typically being paid in dollars, they may not have to pass along a price increase unless it were more substantial.

 

If the watches were priced in yuan and we were paying in yuan, we would realize the benefit of the stronger dollar since the price in dollars would then be lower for us.

 

Sound right..? :timmytwitch: