The president of Argentine bags and markets, Claudio Zuchovickianalyzed the future panorama of the Argentine economy and stated that Argentine companies must be coupled to a paradigm shift. “The last years was the land of the financial market. And now comes the era of the real economy “he said.
Zuchovicki was present at Congress We are SMEs and said that before “a company’s finance manager was more important than marketing or sales.” On the other hand, he stressed that now “You have to work” and “sell quantity to absorb fixed costs.”
The analysis of Claudio Zuchivicki: from the fall of inflation to the search for competitiveness
The analysis of the president of Byma aimed mainly to the change of paradigm in the economy since the arrival of Javier Milei to the government. In detail, the analyst said that before, the inflationary pressure and the distortion of the exchange rate generated that the companies prioritize financial strategies to protect your capital rather than bet on production.
With a direct tone, Zuchovicki questioned the auditorium: “Now, you have to look at costs. Does anyone believe today who can move any rise in costs?” In that sense, he warned that the search for competitiveness will be central to sustain profitability.
“You have to change the chip of selling cheaper stock,” he said in his exhibition and justified: “Before, prices could cover my inefficiency, because nobody knew prices: Things were worth where there was a product, and selling two quantities paid the month. Now you have to work, sell quantity to absorb fixed costs, ”he said.
On the capital market, Zuchovicki stressed the importance of financing for the growth of companies and SMEs: “Credit begins to play in favor. It is a good word, But it depends on what you use the money: if you use it at party or you will steal it, you will generate crisis, But if I put it in a product that generates income, I am generating wealth. ”
Finally, he warned about the new financial scenario that opens with positive real rates. “The country had a negative real interest rate, because the rate was below inflation. The company should have stock and not silver, because the goods protected you more than money and we borrowed to buy goods,” he explained. But, with the turn towards positive real rates, he remarked that the scenario changed and that now the cost of maintaining the stock can melt the companies, “unless he uses the capital market as a tool to try to get a cheaper loan.”
Consumer habit change
Another of the axes that Zuchovicki highlighted is the change of consumer behavior. “Before, the king was the one who had a product, because there were no products. Now, we all owe ourselves to the consumer, who has the final word”He said.
The analyst explained that, in a scenario of lower inflation, the urgency disappears to detach from the weights: “Consumers have the expectation that prices can go down, which takes consumption or waiting promotions, and previously bought advanced and stocked.”
In this new stage, the look on costs becomes even more relevant. The President of Byma especially pointed to the weight of the tax burden within the call “Argentine cost”. In that sense, he explained that now the time is to “look at the fine detail of the numbers”, and said that even what is paid with gross income can “Make the difference.”
Source: Ambito
