Dear Customer, Dear Partner,

The word “Crisis” in Chinese is a combination of 2 signs “Danger and Opportunities”.
In the current economic situation, perceptions of risks and danger are dramatically higher than a year ago. The reality is more complex to capture, as companies defaults have increased by 15% during the last 12 months, with a strong acceleration during the last few months. At the same time, anticipation of default increase tensions in the market, and increase the risk of default. This has had a big impact on the credit insurance market. The textile and garment business is considered to be a high risk sector, whether we like or not, therefore the credit insurance coverage is shrinking rapidly to a very low point that we haven’t experienced for years. In most countries, 50% to 70% of the retailers are now no longer covered by the Credit Insurance companies, while they increase their annual fees by 30% to 40% on average. At the time, looking in sales number, the Pareto rules is there again, 80% of the revenue being done with 20% of the retailers for most of our customers.

Today, we have to contribute to your business in a more creative way to compensate for the guarantee coverage that is shrinking. Customer retention, quality customer selection, early warning on risk of default… Customer credit best practices are on top of our list in order to maintain our performance to serve your performance. In spite of the deterioration of the economy, we are working very hard to maintain our collection performance while accommodating with the situation of the retailers that are experiencing slower sales.

Dominique Chatelin,
FDI Logbox President & CEO