China Fur Market Review 2024/1/15
l Fur Coats Sales in China
This year, fur clothing sales in China show a big difference across various regions. In the Northeastern Market, exemplified by cities like Harbin and Jilin, the traditional fur coat market faces constraints due to a sluggish local economy and income uncertainties. Consumers in these areas are cautious spenders, highly price-sensitive, and reluctant to pay extra for fur coats, even amid severe blizzards. Fur coat sales in these regions fall significantly below retailer expectations, leading to a surplus in fur coat stock. But in the area of North closed to Beijing, Tianjin, Hebei, where the local economy performs better than the Northeastern region, boosted by the extreme weather, the fur coats sales was well, especially during the period before the new year.
l Fur Coats Production of this year.
Due to insufficient coat inventory, which was depleted during the winter of 2022, fur coat producers and retailers began the year with high optimism. Driven by orders from retailers, producers likely increased their production by 1.5 to 2 times compared to the previous year. However, they soon discovered that there were no additional orders due to lower-than-expected sales in the Northeastern market. Now, most of the producers have stopped producing, and waiting for the market movement, and hoping more sales before the spring festival.
l Skins prices.
The new fashion trend of “Miralud Color” drove the popularity of Brown and Mahogany skins this year, resulting in prices being pushed up by an additional 18% to 25% compared to the Saga Sep Price level. The velvet type was particularly well-received. On the other hand, White, Silver Blue, and Palomino skins saw an increase of around 10% in prices compared to Saga Sep price. This is because these types of skins were already elevated to a higher level in September, resulting in significantly higher garment prices compared to the brown type, making them less appealing to consumers.
l Expectation of the Skins market.
Both farmers and buyers are aware that there will be a shortage of skins in the upcoming years. As a result, farmers are more confident in holding onto skins for better prices. Buyers and fur coat producers are currently grappling with the challenge of both limited skin availability and constraints on consumer spending, potentially hindering the growth of garment prices.