04 December 2009 - Chinese fur manufacturers are in need of skins

There is reason for some optimism before the auction season kicks off. The Chinese economy has regained its strength and at the moment fur is strongly represented in Chinese fashion.

There is noticeable improvement in the Chinese economy that has already showed in the fur retail trade, which at the moment is 30-40 percent above last years level.

- All the retailers and manufacturers we have spoken to – and that was quite a lot – have told us that the fur trade is earning well at the moment. In several areas they talked about a distinct need of skins. The manufacturers can’t execute the orders they get, says Managing Director of Kopenhagen Fur Torben Nielsen, who just returned to Denmark following a longer journey in China with Sales Director Rikke Dalsgaard.

They fine start of the Chinese fur season is owed to both cold weather hitting minus 20 degrees Celsius in some areas, but also to the fact that the Chinese now have begun to use fur in new ways, for an example as trimmings on shoes and clothes. Furthermore Torben Nielsen noticed that fur has succeeded in men’s fashion.

- I have never seen so much fur in Chinese shops as is the case at the moment, says Torben Nielsen who doesn’t want to predict skin prices, but on the other hand believes that the situation in China makes a large sale possible with some price increases in the season to come.

In a record breaking time the Chinese economy has regained its strength. The growth is back at plus 10 percent after having spend a few quarters below 7 percent. The growth is partly due to a 6 billion USD aid package from the Chinese government and partly because liberal lending policies have been imposed on the Chinese banking sector.

- This means that there is plenty of liquidity in the system, large purchasing power and an unusual great appetite amongst the consumers to invest in expensive consumer goods, including fur, says Torben Nielsen. However, he points out the single issue disturbing the Chinese fur industry at the moment, which is a custom problem that delays the import of some skins to China.