Exclusive Interview With Fei Liyao, President Of Finland Family Fur Company

At the time of holding the fortieth China International a href= "http://www.91se91.com/news/index_c.asp" and the fur leather products trade fair < p >, the reporter interviewed Pertti Fallenius, President of Finland family fur company, asked him to comment on the reasons for the co operation of the three auction houses, and at the same time set forth her own views on the current market in China.

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< p > < strong > reporter: this year is the first auction of three fur auctions. This is the reason for the joint auction.

Why is the location of the auction chosen in Helsinki, Finland? How will the three auction be conducted separately? < /strong > < /p >

"P >" Fei Li Yao: "the three companies decided to jointly auction is a new attempt, this idea stems from the current people's attention to time and convenience.

This cooperation will provide an efficient one-stop auction service for the whole industry, thus bringing great convenience to the fur industry colleagues in various countries.

At the same time, three companies attach great importance to product quality. Cooperative auction will also create a unique opportunity for buyers of high quality fur materials to choose a variety of the best fur materials in the world.

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The mutual support and advantage sharing among auctioneers become the core value of P.

Because of saving a lot of time and money, the fur industry is very appreciating the way the auction will be concentrated in one place. Many buyers compare the auction to a department store, which can buy all kinds of products needed in one place.

At the same time, the auction will also provide fashion companies with resources to understand fur innovation and application skills.

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< p > choosing the "a href=" http://www.91se91.com/news/index_c.asp "href=" http://www.91se91.com/news/index_c.asp as the auction place is the consensus of the two parties.

The advantage here lies in attracting many types of main buyers: we have always had close ties with Chinese buyers; because in Europe, we have geopolitical advantages with Russia, Italy, Greece, Turkey and other major markets.

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< p > in the auction, three companies will separately classify, grade, make sales catalogues, and organize auctions on the auction sites of family fur in a reasonable order.

In time, the three auction companies are concentrated separately for a period of time, and they are not related to each other.

March 11th -12, 16, 18, -19 and 21 are the auctions of Saga fur, March 15th and 17 are the auction days of the US legend; March 13th -14 is the common auction day for the family fur and wild leather auction houses; March 20th is the joint auction day for the family fur and the American Legend.

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Reporter: at present, China's fur price "slump" phenomenon has attracted industry attention. How do you view this price decline? Does China's price decline have any impact on foreign markets? < /strong > /p > P strong.

< p > > a href= "http://www.91se91.com/pioneer/" > "Fei Li Yao < /a >: the ups and downs of this price appear to me for three reasons.

First, the previous price rises were too large to exceed the expectations of the industry.

At the beginning of 2013, the price of fur increased rapidly, causing some sellers to drive up prices, while the other sellers sold the goods and waited for higher prices.

This phenomenon continued to cause a retaliatory fall in prices at the beginning of this year, and it was "slump" in numbers.

Second, in the production process, China has excess fur production and market supply exceeds demand.

This phenomenon has been going on for a long time in China.

Because fur industry is really profitable, everyone rushing to the market to get a slice of the market, which can easily lead to overproduction, overstock, and a price drop at a specific time point.

Third, in the sales link, there are too many fur markets in China. For example, all kinds of leather cities springing up in the near future will have a big impact on the market as a whole, which will easily lead to price fluctuations and instability.

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< p > China's price decline has certain effect on the price of foreign market, and this effect has been reflected in the auction held in December 2013.

However, because the quality and quantity of foreign leather sheets have been relatively stable, this effect will not be great and will not last long.

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< p > < strong > reporter: at the beginning of this year, the tariff implementation plan for 2014 was officially promulgated.

In the new tariff scheme, two tax items of 43011000 mink skins and 43016000 whole Fox Skins were adjusted from the most favored nation rate 15% and 20% to the provisional rates 10% and 15% respectively.

The Chinese government has begun to make efforts to reduce the tariff rate of fur. How do you evaluate this effort? < /strong > < /p >

"P > Fei Li Yao: we are very pleased to see the efforts made by the Chinese government in the fur industry, and the various efforts made by the China Leather Association in the sustainable development of the industry.

This tax reduction has taken a very important first step, which is a good direction for development.

However, we also see that there is still a gap of 5% between the adjusted mink and Fox Skins, and the demand of Chinese buyers for raw materials is varied.

For raw materials, we believe that the gap should be reduced until the same tax rate is finally applied.

Of course, such efforts should be carried out step by step.

In addition, the international raw material tax rate is generally maintained at 0-5%, so China's current tax rate is still high.

We hope that in future work, your colleagues can continue to work hard and call for a gradual reduction in tax rates so that Chinese buyers can enjoy better world skin.

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P: < strong > reporter: the Western auction houses such as the family fur and so on have a history of 100 years, and they have rich experience in the operation of the auction houses.

In the current market situation, what suggestions do you have for establishing auction houses in China? < /strong > < /p >

P: I don't think China has the best time to establish auction houses.

The most important point is to establish trust with fur sellers.

At present, such trust in China is not enough.

To establish auction houses, it is necessary to co-ordinate and concentrate farmers' management on farms, divide the farms into different grades, and integrate the different ideas of farmers and balance their interests.

With the current situation in China, the effect of immediate selling of fur from farmers is immediate. As long as the money is sold, the money will come directly.

However, the establishment of the auction system must be guided by the guidelines of the auction house. After a series of complicated procedures, it is necessary to hand over the fur to the auction house, and finally wait until the auctioneer arranges the time for a unified sale. This sales mode is not immediately able to cash the cash.

Therefore, in order to turn our immediate interests into long-term interests, the establishment of China's auction house system still needs a way to explore and practice.

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< p > but we very much hope that China will have its own fur auction house some day. At present, we need to go all out step by step, and I believe this goal will come true soon.

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