Why the Sapphire pastel and mutation foxes are so hot?

Auctions in March

Auctions with certain types of fur coats have been highly successful, with some types experiencing a surge in sales. Recent data shows that the sales rate in Denmark was 100% and in Finland it was 88%. Remarkable increases were seen in the sales of niche furs such as sapphire, pastel, and colored foxes. Upon closer examination, apart from the well-known factor of reduced production in European and American farms, the changing preferences of Chinese fur apparel consumers have indirectly manifested in this auction.

Fragmented Market is Calling

• l  Fur coat buyers, especially younger buyers, have increasingly fragmented demands for fur coat styles and types. They prefer to shop online. Modern online sales algorithms can quickly assist these customers and connect them with clothing manufacturers capable of meeting their fragmented demands and conducting online sales. Manufacturers catering to these fragmented demands can maintain good profit margins, while many manufacturers of mass-market conventional styles still rely on offline customers and struggle to profit in the homogenous competitive market.
• l  Meeting the fragmented demands of clothing buyers requires clothing products to possess unique styles, which in turn drives the demand for scarce raw materials. This will bring positive factors for the development of niche and scarce furs.
• l  Fragmented demands also place higher requirements on raw material suppliers to respond with greater flexibility to the production plans and designs of clothing manufacturers. They need to provide exclusive and flexible supply, and even engage in joint planning and development of the coats. This will lead to a deep integration between raw material suppliers and clothing manufacturers, and produce  greater value for both the raw materials and the clothing makers
• l  Currently, the sales prices of popular fur types such as Brown, black, and mahogany still do not fully cover the breeding costs, which will continue to result in a reduction in the supply of such raw materials. In anticipation of this, farms will generally sell their products at higher prices, which will make it difficult for manufacturers producing traditional styles. On one hand, they will face high fur material costs, and on the other hand, their products will lack price competitiveness and fail to generate profits. In the long run, these manufacturers will gradually be forced out of the market, leaving space for manufacturers focusing on branding, flexibility to fragmented demanding, and the high-end fashion.
• l  From the perspective of farms, it is important to dynamically understand the demand of the Chinese market, allocate raw material production capacity for different categories of fur coats, ensure limited production scale for each fur material category, and fully develop the raw materials together with fur coats brands. This ensures profit margins for fur coats producers and establishes an essential mechanism for the healthy development of fur farms, clothing manufacturers, and the entire fur industry.