The abandonment of the minimum exchange rate threatens an excessive appreciation of the Swiss franc. Switzerland will become more expensive for foreign visitors, and tourism and the export industry are likely to feel the effects of the Swiss franc exchange rate significantly.

Import more cheaply from the EU
Anyone importing products from the EU into Switzerland will pay less for them in future, currently around 20 percent. This will at least make imports cheaper - whether importers will pass on this price advantage is another matter.Inventories purchased at a higher euro exchange rate must also be taken into account. If the prices of these stocks are adjusted to the development of the Swiss franc/euro exchange rate, this currently corresponds to a write-down of around 20 percent.What happened in summer 2011?
The euro-franc parity is nothing new: due to the Swiss franc-euro parity in August 2011, several bike stores near the German border reported that the price gap between Switzerland and abroad was so wide that it was sometimes impossible to sell high-priced bikes. The price differences for bicycles between Switzerland and Germany were up to 70 percent.Since the situation affected well-known, well-established specialist bicycle retailers in the region, there was resistance from dealers in Eastern Switzerland. The group "Fairprice 2012" - consisting of specialist dealers from the regions of Winterthur, St. Gallen, Thurgau and the Engadine - reserved the right to take action against unfriendly and anti-competitive behavior on the part of internationally active bike manufacturers.

Subsequently, the suppliers' behavior varied: some suppliers adapted immediately and easily to the new currency situation and reduced their prices without delay. Some suppliers were stoic and reacted only hesitantly and wait-and-see before adjusting their prices.

Proving adaptability: Round two
The Swiss bicycle industry is therefore familiar with the challenges of currency fluctuations. During the trial of strength between specialist retailers and suppliers in the summer and fall of 2011, the market participants defined the first rules of the game for pricing. The fact that it is only January - and the start of the season is still a few weeks away - is probably to the benefit of the specialist bike trade. This means there is still time and hopefully a cool head to ideally prepare for the current situation and the upcoming season.How the dollar exchange rate is affecting the Swiss bike industry and exclusive statements from representatives of the Swiss bike industry will follow shortly on ride.ch