Fur Industry: Cold Memories In Warm Winter

Due to the impact of the warm winter weather since last year, the low export tax rebate rate, the low price of fur market in foreign auction markets, the low demand for Moscow fur wholesale market, and the blind expansion of domestic farms in 50%~60% fur sales, a large number of fur products are being backlog seriously, and the fur industry is facing an unprecedented challenge. According to the insiders, taking quality strategy, quality awareness, developing new markets and developing new channels will be a weapon for enterprises to resist risks. "If you want to buy fur coats, this year is the most cost-effective year in recent years. A coat of more than ten thousand has been bought for four thousand or five thousand yuan this year. " A friend who has been engaged in fur trade for many years has recently revealed to reporters the "insider information". Inadvertently, he told an open secret in the industry. "This year, fur production and processing enterprises and fur animal breeding enterprises have suffered a lot." In from December 17th to 19th, at the scene of the national fur trade fair in Zhaoyuan, Daqing, in 2007, a reporter visited several dozen enterprises that came to the conference. The representatives of the enterprises have no regrets. The warm winter in recent two years has made them "cold heart", and the price of fur purchase has fallen sharply, falling to the lowest level in more than 10 years. Zhang Mingqi, manager of Daqing Black Leather economic and Trade Co., Ltd., told reporters that in the past year, 500~600 yuan / article of snow fox sold only 300 yuan / piece of the price this year, while the number of customers who expressed willingness to purchase was still very few. Last year, 50 yuan / Rex rabbit fur sold for 30 yuan per year this year. Last year, 400~500 yuan / dog raccoon skin has fallen to 180~200 yuan / year. The reporter's friends in the industry told reporters more excitedly that, "hundreds of yuan in previous years, a good mink cooked leather can be bought tens of dollars this year", although this friend is intended to introduce the market to reporters, but reporters did not because the fur products prices into the "bear market" and excited, but for the fur industry how to spend such a bleak winter warm a sweat. Warm winter + weak market = price plummeting, Zhang Bin, director of China fur trading network, said in a recent interview with reporters that due to the impact of warm winter weather, export tax rebate rate reduction, foreign auction market fur prices lower, the world fur 50%~60% sales of Moss's fur wholesale market demand decreasing and domestic breeding enterprises blind expansion, many fur products are now overloaded, and fur industry is facing an unprecedented challenge. A series of factors will exert force until the profit margins of fur processing enterprises and fur animal breeding enterprises are "squashed". Zhang Bin explained to reporters that last year's warm winter weather caused a large backlog of domestic fur products such as mink coats, fur accessories and down garments. According to insiders, nearly 50%~60% of last year's goods were on sale. This winter continued the warm winter weather, and the purchasing power of the fur market continued to be weak. The reduction of export tax rebate rate is even more important for fur production and deep processing enterprises. Since the beginning of this year, the export tax rebate rate of fur commodities has dropped from 17% to 13% in the past year, and then dropped to 5%. The export enthusiasm of the deep-processing enterprises has been frustrated, and the pressure on the domestic fur market has been increased again. According to rumours, no Chinese have been running fur business in the Far East, and many domestic enterprises have lost a lot of orders. In addition, affected by the low price of fur in foreign auction markets, China's fur animal breeding industry has also fluctuated. Now, between August 30th and September 20th, the prices of blue fox and mink in Finland and Danish fur auctions have dropped continuously by about 10%, so the price of high-quality Blue Fox and mink has dropped, which has increased pressure on domestic fur prices. In the two years from 2005 to 2006, the price of fur remained high, and the domestic breeding enterprises blindly expanded and the industry self-discipline ability was poor. Then coincided with the warm winter weather, as "the enemy's narrow road", the domestic fur animal breeding industry, fur accessories, fur products industry chain interrupted, the situation is far more than the demand. The boutique line has become an enterprise rescue journalist, and has learned from the interview that for many years, the main consumer groups in China's fur industry are facing the international market. Russia, the Middle East and West Asia are the main markets of fur products in China. Due to the weakness of foreign markets, domestic fur and leather products processing enterprises had to fight for domestic sales. Unfortunately, the domestic sales situation was not optimistic. Jin Enshan, manager of Heilongjiang Huafeng fur Co. Ltd., told reporters that in previous years, the company exported 200 thousand fur products annually, and so far this year only exported 70 thousand pieces. In addition, because of the same warm winter weather, the narrow market has further shrunk. "In the past year, 90 thousand fur products could be digested in the country, but this year the company has only sold 20 thousand copies." Zhang Bin said that optimizing the quality of products, adjusting the aquaculture structure, market oriented, reducing feed costs, changing the negative trend of blind expansion, reducing crowd psychology and avoiding negative selling should be the homework of the vast majority of farming enterprises. In addition, "according to the market demand every year, the best seasonal sales point can be determined, and the loss of enterprises can also be reduced as much as possible." At the same time, at the same time, the price of the Finland and Denmark auctions has just ended in September, and the price of the deep processing enterprises has been foregone conclusion. The third selling points in the month of 10~11, the new leather has not been knocked down, and the sales of leather products have been sold out in the past years. At the same time, it is a good season for the domestic trade. Therefore, the price of the glucocorticoid has been replenish the market blank. The fourth selling point is the new year January, when the price of fur is low, and the trade between the domestic and foreign trade is almost over. With the coming of Foreign Christmas and the coming of the Spring Festival, the domestic enterprises are in a state of concentrated skin picking, and the supply of goods is abundant in a short time. The trade of domestic foxes, raccoons and Martens is almost at a standstill, and the market transaction is dull. In his view, it can be divided into 4 selling points each year, the first selling point is 6~7 months per year, foreign trade starts to start, the market is better; the second selling point is that after September, domestic trade starts to start. "If fur traders did not hoard goods last year, this year will be better, but fur deep processing enterprises and fur animal breeding enterprises need to take a lot of risks. A company with millions of output value in Hebei has collapsed because it can not withstand the attack." The reporter's friend said. "Taking quality strategy, quality awareness, developing new markets and developing new channels is a magic weapon for enterprises to resist risks." Beijing Wanshan Rabbit Industry Co., Ltd., the representative said. She said that the current heavy fur clothing market is clogged, but some fashionable and lightweight fur accessories are still popular. "Scarves, gloves and other market prospects are still broad, and enterprises need flexibility."