What Led To The Price Bubble Burst In The Fur Market This Year?

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Xiaobian net to introduce to you is the price bubble of fur why break?

In the leather capital of Haining, in recent months, businesses have failed to keep up with the pressure of inventory.

Once known as "soft gold" fur, it has become a hot potato nowadays. For this reason, insiders admitted that the overheated fur prices in the past few years caused overproduction to be the main reason for their "Waterloo". The bubble industry is good news for consumers, because this year's start will be very cost-effective.

The consumers who love fur should not be hard to find that the price of fur has dropped sharply this year. "The imported mink coat with a price of twenty thousand or thirty thousand last year will be able to buy eighteen thousand yuan this year, and the homemade rare short marten fur that was hard to get before this year is also available, and the price dropped from more than 10000 to seven thousand or eight thousand."

A leather retail store owner in Haining leather city told reporters that the price of fur in leather city has dropped to varying degrees.

In addition, some

Accessories, such as mink fur collar, fell 100 yuan this year from the price of 180 yuan last year.

"The price of retail fur has probably dropped by 30%-50%, and some of the categories have even cut the price directly."

In the e-commerce platform, the once famous fur sellers are no longer in sight. "In the past few years, when the market is good, the Taobao group buying platform sells a fur price of twenty thousand, which can sell more than 100 items in three days, and the sellers can earn a lot of money."

Fur sales director of a clothing company in Hangzhou said that the number of fur sellers on the shelves of Taobao sellers has dropped significantly this year, with the fierce competition in the electronic business platform and profits are near the bottom. At the same time, some Haining and Hangzhou local clothing brands have cancelled the plan of new fur on Taobao in the winter season.

So, why did the "soft gold" become a hot potato? The industry believes that the main reason is that the fur price has gone up crazily in the past few years, resulting in the overproduction of fur in China for a long time.

Zhao Shuyuan, chairman of the Hongkong fur industry association, said in a media interview that the luxury market in mainland China developed rapidly several years ago, and the demand for fur products was large, and the price of raw materials rose.

But now the mainland market has been saturated.

In addition to this, Pierre Knudyson, chief auctioneer of Copenhagen fur, said at the auction in February this year that "warm winter" directly led to the stagnation of sales. Serious inventory phenomenon meant that the manufacturers did not need too much procurement behavior, which directly led to the sale of raw materials for each auction site at a lower price. However, the British Guardian believed that the Chinese government's anti-corruption accelerated the "piercing the fur bubble". In addition, the Ukraine crisis also blocked the fur trade.

In this regard, the vice chairman of the China Leather Association and the chairman of Limited by Share Ltd of China Leather City in Haining have held the view that there must be many objective reasons for the deep callback in the fur industry, but the fur industry itself needs to reflect on its relatively extensive growth mode.

China's fur industry has been able to enter the "upward path" which has lasted for more than 6 years because of the historic opportunity for upgrading clothing consumption in China.

In fact, China's fur industry "engine" continues to exert power, and consumption in Eastern Europe and Russia is also rising all the way, making fur industry more and more "Crazy".

Take mink as an example. Since 2010, the cost of mink raw materials has been rising. The price of domestic mink is rising at a rate of 15% per year. The price of imported mink is rising at a price of 20% per year.

According to the data from Haining Leather City, market demand has pushed the price increase of mink skin to two digits per year, up to 100% in the first half of 2013.

But after that, the "crazy mink" finally lowered its head. Information from the North American Fur Association, the legendary fur auction house of America, the Finland family fur auction house and the Russian fur auction house also showed that the price of mink has been cut down in less than half a year compared with the peak price of the auction in 2013.

"In the next few months, the price of fur will increase slightly, but not very much, and there will be a wide variety of fur, which will vary according to its inventory situation.

I think the current price has returned to a reasonable level. For consumers, it is the right time to start making fur. "

Insiders said.

The "retaliatory" drop of fur is actually symptomatic.

"When we went to Hongkong to participate in the auction at the beginning of the year, the leather material dropped very badly."

Haining Leather City, a high surname fur traders said.

As an important high-grade imported leather material gathering place in Hongkong, the annual auction has become the vane of domestic fur. After buying this professional leather material buyer, it revealed that the price of raw materials has dropped by 30% to 40% since December last year.

Previously, in the strong demand of Chinese market in recent years, the fur export of big mink Denmark accounted for 1/3 of the total import of Chinese fur.

The price of Copenhagen fur auctions also rose to a price of about 600 yuan per kilogram due to the arrival of Chinese buyers. From the auction season in February this year, the price of mink in Copenhagen auction fell to about 300 yuan each. Torben Nelson, President of Copenhagen fur auction house, said that the Chinese fur bubble began to break up this season.

In this regard, China

The vice chairman of the association and chairman of Haining leather city of China have said: "the price of the Copenhagen fur auction will drop. For some large inventory enterprises, the pressure will be very great. The value of clothes in the warehouse will shrink, and the small inventory enterprises will have a wave of opportunities."