Fur Consumption Rising In China

Affected by the weak world economy, luxury goods have not been easy in recent years. But Prada, an international luxury retailer, recently announced a 30% year-on-year increase in net profit in the third quarter. The adverse growth was due to a 47% year-on-year increase in fur sales, and Chinese customers became the main consumer.

According to the securities times, for leather and fur Domestic consumers have always been enthusiastic, but in the face of such a big cake, China's listed companies, such as Huasi shares, which are involved in fur, seem to have raised their swords and forks for a long time, but do not know where to start.

　　 Rapid market growth

"Now, people's living standard has gradually increased with the increase of high-income fur class." Haining Leather City Securities Department told the securities times that mink is the most expensive fur, while rabbit and fox skin are relatively cheap. All kinds of furs are available from hundreds of thousands of yuan, tens of thousands of yuan and even thousands of yuan. Consumers have a wide choice. The market of fur consumption is also expanding, and the sales volume has been in a steady growth state in recent years.

With the upgrading and transformation of China's consumption, domestic fur consumption has begun to spread abroad from the previous undercurrent surge. According to Prada's third quarter data, fur sales accounted for 64% of the company's total sales, with sales in China up 33% year-on-year. Prada said European sales increased 54% year-on-year, mainly due to the strong growth of Chinese tourists' consumption in Europe.

According to statistics, fur consumption in China is on the rise Clothes & Accessories The compound growth rate of the market reached 22.4%. It is estimated that by 2015, the domestic fur consumption market capacity will reach 16.423 billion yuan. Of the 2.5 million fur pieces in 2010, China consumed 1.5 million pieces, more than half of them.

More interesting statistics show that as a representative of high-grade fur Mink skin 80% of minks sold by international fur auction houses were purchased by Chinese buyers.

　　 Insufficient concentration of industries

Although from the data point of view, China has become a big fur consumer, but it is not difficult to find that the concentration of fur industry is still very low.

As a leading domestic fur manufacturing company, Huasi's fur sales increased by 17% in the first three quarters, but accounted for less than 1% of the industry's total output value, which may be related to the immature domestic fur market. Obviously, there is a lot of room for industry concentration.

More than 90% of PIDA's authorized companies are engaged in the export of securities products, such as juxtaposition, which accounts for more than 90% of China's licensed products. The sales proportion of the company is very small in the domestic market with strong growth.

"This is not the company's deliberate neglect of the domestic market, there are special reasons, but we are adjusting our strategy to promote domestic sales." Xu Yaping said that compared with the mature European and American markets of fur industry, although domestic market demand has begun to rise, it is still in the initial stage, and fur consumption concept and value still need to be explored and cultivated. In the domestic market, all kinds of brands are mixed, and there is no decent Chinese fur brand. The middle and high-end fur consumption is basically occupied by foreign brands.

The problem in front of the domestic fur industry is that in order to expand the domestic market, it is necessary to establish sales channels to distribute goods, but this step is facing the problem of capital shortage.

It is estimated that if you open a 100 square meter fur store, only the cost of distribution will reach about 5 million yuan, which is much higher than the general consumer industry.

"The potential of domestic fur market is certainly great, but domestic enterprises still have a long way to go to reach the operation standards of mature markets in Europe and America." Yu Xuhui, an analyst in the textile and clothing industry of Ping An Securities, said that under the premise of ensuring the quality of fur products, increasing the number and scale of stores is the first step for enterprises, and advertising is also necessary. At present, there is no domestic famous brand of fur, which is also a good opportunity for fur enterprises to establish brand.