From the beginning of this year to September, thousands of fur companies in my country have closed down. The fur, which has always been called”soft gold”, cannot be sold this year. . What happened in the fur industry?
1 The price of Hebei fur has fallen year after year
Sell a fur at a loss of 80 yuan
Hebei’s Suning County is the country’s largest fur trading center, trading at most nearly half a million furs a day. However, due to the impact of the epidemic this year, both transaction volume and transaction value have fallen sharply, with only a few hundred thousand furs traded every day.
Shangcun Fur Trade Market, located in Suning County, Hebei Province, is one of the seven largest fur markets in my country. Since the epidemic this year, the entire market has looked a bit deserted. August and September have always been the traditional peak season for fur trade, but now only the few days of the monthly market are lively.
The wholesaler told reporters that since 2013, fur prices have plummeted. From 2015 to 2019, the price of fur rebounded slightly, but this year’s epidemic has brought the slightly improved industry back to the freezing point. As many shops import furs from abroad through auctions, the sales markets are mainly high-latitude countries, such as Russia, Norway, and Finland. The stagnation of foreign trade has greatly affected sales.
Mr. Lu, a wholesaler at the Jingnan International Fur Trade Market in Shangcun, Suning County, Hebei:This fox skin sells for 1,000 yuan. When the market is good in 2016, one piece sells for about 1,500 yuan. It was sold in September of the previous year. It’s a piece of 1080 yuan, pay a little at the current price.
The sale of fur is not an immediate buy-and-sell. Most wholesalers received the goods last year. Affected by the epidemic, this year’s fur prices are not ideal, but in order to recover funds, they have to sell at a loss. . Wholesalers usually use gestures to negotiate prices. Because of the difference in quality and size, the price of each fur is also different.
Industry insiders told reporters that although the demand for fur has gradually increased in the fall and winter, since export sales are almost stagnant, wholesalers can only rely on the domestic market, and fur overall is still oversupply.
Li Jing, general manager of Jingnan International Fur Trading Market, Shangcun, Suning County, Hebei:In the past, the raw leather trading market had an annual turnover of about 4 billion yuan, but it was affected by the epidemic this year. It is now a peak sales season, but this year’s peak sales season is relatively weak, because the number of orders has decreased, especially after the cancellation of orders for foreign sales, the number of domestic orders has not increased significantly.
2 Farmers lose 50 yuan when they sell a raccoon dog
Vicious cycle of breed improvement
Since 2013, the fur industry has gradually entered a cold winter. Although there has been a slight recovery in recent years, this year’s epidemic has completely disrupted the pace of industry recovery. For fur wholesalers, the purchase price is higher than the selling price, so many merchants have suspended the purchase of fur. What about the farmers?
Not far from the Fur Trade Center in Suning County, Hebei, is Zhang Tiecheng’s farm. In 2003, Zhang Tiecheng, a fur wholesaler in Dalian, took a fancy to the high benefits of fur farming and devoted himself to it.
Zhang Tiecheng told reporters that he currently has 5,000 foxes and raccoons in total. The fox can only sell for about 300 yuan each, while the price of a raccoon is only 200 yuan.
Zhang Tiecheng, a raccoon breeder in Suning County, Hebei:Excluding labor, the cost of raccoon is about 200 yuan, plus labor is about 250 yuan, and the cost of fox is about 300 yuan, and they are all at a loss now. A fox or raccoon loses about 50 yuan. Due to low profits, the scale of local farming has been decreasing year by year in recent years, and this situation does not only occur in Hebei. Data show that in 2019, the number of domestic mink skins was 11.69 million, a year-on-year decrease of 43.61%, and the number of fox skins was 14.43 million, a year-on-year decrease of 17.02%.
Zhang Tiecheng told reporters that when the market was good in the past few years, farmers would introduce high-quality breeds to breed foxes and raccoon dogs, but now the breeding is not profitable, and most farmers adopt self-reproduction and self-support methods. This method makes it difficult to improve the quality of fur. The quality of domestic fur is lower than that of imported fur, and it is more difficult for foxes to be sold at a good price.
Industry insiders told reporters that due to differences in quality, fur processing companies are more willing to buy foreign furs through auctions. Domestic farmer sales have further declined, causing a vicious circle. At present, there is no one in ten domestic retail farming.
3 The price of fur apparel dropped by 60%in 7 years
Future supply and demand may gradually balance
Fur, which is a luxury product, is in a dire situation today. What are the reasons behind the industry? What happens to finished fur garments when farmers and wholesalers are losing money?
The reporter learned in the interview that the decline in fur prices in recent years is mainly related to supply and demand. Due to the low threshold, a large number of farmers and wholesalers entered when the fur industry was more profitable in 2013 and 2015. Supply is far greater than demand, which causes prices to fall.
He Sucheng, vice chairman of Chinas Holdings:Originally, China was the world’s largest fur consumer market, and Russia was the second largest fur consumer market. As the Russian economic market declined, the entire fur consumer market declined. There are so many, it can be said that it was originally 100%, but now it has dropped to 20%. In a short period of time, the supply of raw materials worldwide has exceeded demand.
In Fur City, Suning County, Hebei, a merchant told reporters that although it has not yet entered the peak season for ready-to-wear sales, according to the current momentum, the situation this year will not be too bad.
Due to the drop in the price of raw materials, the price of finished clothing has also fallen sharply. At present, when the price of fur clothing is relatively high, the price reduction generally exceeds 60%. Merchants told reporters that after the price reduction, the sales volume increased significantly .
Wang Zhanjun, a merchant in Huasi International Fur City, Suning County, Hebei Province:Initially selling 300 pieces, 500 pieces in 2014, and now selling more than 1,000 pieces, more than 2,000 pieces, or more than 3,000 pieces, the price has dropped , Sales have gone up.
This piece is now about 7,000 yuan and 8,000 yuan, and in 2013 it cost more than 20,000 yuan.
Industry insiders told reporters that although it is now known as the low period of the fur industry, from the perspective of clothing sales, the domestic demand for fur apparel has not declined. With the reduction of fur inventories and the abandonment of fur breeders, fur supply decreases. In the next two years, fur supply and demand will gradually balance and prices will rise. The fur industry will also pick up significantly and usher in new development.