Market tendencies at fur fairs
11 March 2014Auction
The lower price level and a general uncertainty concerning the markets were noticeable during Chinese and Italian fairs.
Hong Kong Fur Fair ended late last month and the Italian fair MIFUR ended last week - both fairs were held in the shadow of a market with declining prices. Therefore market observers have been watching from the sideline with great anticipation. According to the newsletter - Sandy Parker Reports - Hong Kong Fur Fair measured a modest loss of visitors and a drop in skin prices. They report a 28 percent drop in average prices compared to last year's fair in Hong Kong.
Ukraine crisis felt in China
Timothy Everest, director of Hong Kong Fur Fair, explained in a press release that it was regrettable, that the fair was held in the backdrop of the international crisis on the Crimean Peninsula.
The international crisis may have impacted the regional and economical exchange rate, and may have created uncertainty among the Russian buyers and influenced their desire to purchase skins. It is worth noting that the Russian buyers typically purchase the most during the fair. Also, the fair was held in the wake of one of the warmest winters ever registered, which has further dampened the demand for skins and fur products.
Waiting for auctions
Timothy Everest also pointed out, that the market for mink was very calm during the Hong Kong fair, but that other skins, such as fox, sable and chinchilla performed well. The director explained that the market for luxury items is saturated in China, which in turn meant that expectations had been lowered prior to the fair.
He also pointed out that it would be difficult to perform evaluations on the market solely based on the Hong Kong Fur Fair. He believes that the buyers' appetite will be clearer following Saga's auction this week and Kopenhagen Fur's auction in April.
Uncertainty in Italy
MIFUR was just recently completed and during this fair the arrangers also noted a modest drop in visitors. The Italian fair took place just as the Crimean crisis was at its highest, which meant that the Russian buyers were somewhat nervous due the uncertainty that existed at that time concerning the possibility of economic sanctions against Russia.
Number of visitors during the fairs
MIFUR registered 14,228 visitors during the four days the fair lasted. This was a 2,85 % decline.
Hong Kong Fur Fair had 7,259 visitors. This fair experienced a 9 % decline in visitors.
Hong Kong Fur Fair reports, that they received orders worth 150 million dollars. The Russian buyers accounted for 30 % of the purchases - followed by buyers from China, Eastern Europe, U.S.A, Turkey, Japan and Korea.
MIFUR has yet to report any concrete sales numbers.