Yeah, but consistent with time tested strategies for this Group, the decision will warm the pocket books of FLKI shareholders.
To say that purveyor’s of Falken Industries’s (OTC : FLKI) product concepts are notable for their ability to distinguish themselves from the mass is an understatement – you’ll find them with FLKI support rushing in where other’s dare not dwell. “Iceland's economy is set for a nascent recovery early next year but much remains to be done before the country can lift itself out of its deepest recession in decades” Manuel Garcia, Communication Officer said.
The Product Group’s Global marketing unit said Iceland's economic contraction, projected at around 7% this year, will be deeper than in most other OECD countries, but the nation should "begin a gradual recovery in 2010 assuming that large energy-related investments get underway as planned – “all of this provides an extraordinary opportunity for the expansion of Clean Plus® product lines already well known in the country, an opportunity to seize a dominant market share that the Group fully intends to exploit." Added Garcia.
Iceland fell into the worse recession in several decades, after falling prey to a financial ordeal and the loss of purchasing ability resulting in a severe impact on demand domestically. On the positive side says the Group’s New Business Development Committee, the Island nation has become devoid of any significant competition for FLKI product conceptions and notably those distributed by the Clean Plus® Product Group.
The island of 320,000 people nearly suffered a meltdown as its three biggest banks -- representing 85% of the banking sector -- were toppled by $80 billion of debt, several times the country's GDP.
Kaupthing Hf, Landsbanki Hf and Glitnir Hf were nationalized in rapid succession, capital markets froze up and financial relations with foreign nations collapsed, culminating in a callous commando misuse by the British of distorted interpretations of legislative dispositions to justify the squeeze on Iceland by blocking Icelandic bank assets located in the UK.
As seen by the Group’s strategic development unit, Iceland was simply a fall guy, victimized by the crisis internationally; this is being quickly rectified by credible measures which are fueling growth in their deployment against the crisis.
Distribution of Clean Plus® products was seriously perturbed by restrictions on capital flows implemented to prevent a domestic run on the currency and stabilize the exchange rate -- which plummeted this autumn, causing inflation to soar. The Group’s distributor marketing and sales support unit provided the help for its distribution’s difficult cash flows, extended payment terms, froze the exchange rate for the Icelandic Kroner to a pre-crisis rate, and provided resources and counsel to assist distributors through the times – “allowing our distribution in Iceland to weather the storm better than others and notably in light of their competitors whose market share has dwindled in favor of FLKI product conceptions in a significant way” Added Garcia.
The Group is also betting on the very real possibility that Iceland will seek euro-zone entry as soon as possible if it is allowed to become a member of the European Union. It applied for membership in July. This would facilitate Purchasing Power adjustments in the pricing policies of the Group, lowering prices still more - making the market a virtual exclusivity for FLKI product conceptions. The Clean Plus® has not raised prices since 2001, because of strategic hedges, economies of scale and purchasing and procurement operations recently formalized by World Trading.
The Product Group has had a growing presence in Iceland for several years, and with two Super Distribution Platforms there, is uniquely positioned to take advantage of the current situation. “We love Iceland, and sales there are up 18% so far this year and growing even as we speak” concluded Garcia.
I’m bullish on this company and it’s methods, I’ve followed them since 1997 – and never a disappointment – non-conforming, yes, but lavish with a coat of unprecedented success for this industry.
