China'S Fur Industry Needs To Break Through Extensive Development Mode.

After many years of rapid development, China's fur industry has entered a period of deep adjustment since 2013. Especially in the past two years, the deep callback of the market and the normalization of environmental protection and high pressure accelerated the process of industry shuffling.

Li Yuzhong, chairman of the China Leather Association, said recently that the shuffling of fur industry is a microcosm of industrial structure adjustment and pformation and upgrading, which is a good thing in the long run.

We should eliminate enterprises with excess capacity and inadequate pollution control capacity or small workshops, and those enterprises with pollution control capability, cleaner production and meticulous management will be able to gain greater market capacity and development space after shuffling.

Li Yuzhong believes that with the rise of quality consumption, China's fur industry is still facing great opportunities for development, but there are still many difficulties and bottlenecks in its development. We need to pform the extensive development pattern in the past.

China Leather Association's latest data show that in 2017 1~11 months, China has more than one scale.

A total of 625 enterprises completed sales revenue of 84 billion 722 million yuan, an increase of 1.41% over the previous year, and the growth rate accelerated by 1.36 percentage points, but the total profit was 5 billion 308 million yuan, down 6.96% compared to the same period last year. The profit margin was 6.27%, down 0.56% from the same period last year.

These data indicate that enterprises are facing more severe challenges in the actual operation, which are mainly manifested in environmental pressure, excessive import tariffs, electricity supplier impact, profit narrowing, weak brand strength, innovation and craftsman spirit.

As we all know, the pollution of fur industry is mainly reflected in the links of nitrification and dyeing, and the proportion of enterprises in Hebei area is very large.

In recent years, the heavy pollution in Beijing, Tianjin and Hebei has made it difficult for Hebei to carry out the production of nitrite dyes by family workshops.

From the perspective of fur culture, China's fur animal breeding industry is still relatively backward compared with developed countries in Europe and the United States.

Large scale breeding enterprises occupy relatively small proportion in China, and courtyard aquaculture occupies quite a number.

According to the survey, some courtyard aquaculture enterprises do not have the ability of feces and sewage treatment, while some breeding enterprises are close to the living water sources and residential areas, and have the risk of polluting the local living environment.

At present, all parts of the country are in the process of controlling and shutting down fur animal breeding enterprises which do not conform to the environmental protection policy. However, there is no proper compensation policy, and economic distress makes it even worse for the fur animal farmers in the market downturn.

At the same time, the development of China's fur industry's processing enterprises has also been constrained by factors such as rising labor costs, rising land costs and high comprehensive tax burden.

What is more striking is that most countries and regions in the world fur production mostly adopt the zero tariff policy or low tariff policy of fur pellet import. Some European Union and ASEAN countries have zero tariff, and some European countries have the highest import tariff of raw fur 3.6%.

The MFN rates of China's mink, raw fox fur and wild fur are 10%, 10% and 20%, respectively, which are significantly higher than those of other countries, and are not conducive to fair participation of Chinese enterprises in international competition.

In addition, the impact of e-commerce on traditional physical stores has been shown in various industries, especially the change of shopping habits of new generation consumers in China. The popularity and sales of traditional shopping malls and professional markets have declined sharply. Fur garments, as the high-end products in clothing, have also been greatly affected.

On the brand influence, at present, the brand of fur industry in China is regionalized, for example, there are KC fur and blue grass fur in the three provinces, but they are short of national famous brands due to the influence of sales channel and price system.

On the other hand, the brand stores built by brands are relatively dispersed, and it is difficult to form agglomeration effects.

Another major problem in the development of the fur industry in China is the lack of innovative spirit and craftsman spirit, imitating and plagiarism, which is related to too much innovation and high cost, and more related to the idea of the operators.

The above problems have attracted the attention of the industry and taken active measures to solve them.

Li Yuzhong said that in view of the environmental pressure faced by the industry, the China Leather Association has launched an environmental verification in the enterprise in recent years, and has jointly launched the international animal welfare (mink / Fox / raccoon) demonstration farm with the International Fur Association to guide and promote the whole industry to enhance the level of environmental protection, and advocate civilized breeding.

Among them, the Commonwealth international animal welfare (mink / Fox / raccoon) demonstration field sponsored by the Association last year and the International Fur Association jointly attracted the attention of the international fur industry and set up a platform for domestic enterprises to cope with international trade barriers and cooperate with international brands.

At present, 5 farms are honored.

In view of the brand building problem, in 2015, the China Leather Association publicized the Zhejiang Zhonghui fur Co., Ltd. and Beijing Shulan international through the selection of "China fur top clothing King".

Products and image of limited liability company, worth Cmi Holdings Ltd, Yinshan fur Co., Ltd. and Hebei SimMan Business Group Co., Ltd.

At present, these brands have developed steadily, and word of mouth and market share have been increasing.

He Sucheng, general manager of Limited by Share Ltd, said that the road of brand is tough, but perseverance will be rewarding.

At present, some fur enterprises are faced with common problems such as narrowing profits and so on.

He thinks that some enterprises have vicious competition for selling price war, which has greatly disrupted market order and is also an important reason for lowering profits.

He suggested that we should develop together, seek common ground while reserving differences, and create a good environment for business development.

Faced with the problem of insufficient industry innovation, China Leather Association has been making efforts to create an innovative environment by organizing design competitions.

Some enterprises have also begun positive actions in this regard.

"Our strategy is that we will not do anything we rush to do, we have to be a leader, we must lead the way, and we must make great efforts in designing and developing.

Over the past few years, our design team has grown stronger and stronger.

We have made great breakthroughs in rapid grasp and design innovation.

He Su Cheng, general manager of Limited by Share Ltd, said.

Turning to the impact of the electricity supplier, Huang Yanjie, director of the industry department of China Leather Association, believes that the amount of fur clothing sold by the Internet is not large at present. The main product category is to send out the overcoat, the sheep's sheared coat and the middle and low end fur clothing. In the long run, the proportion of the net sales will probably increase steadily, but the high-end fur clothing will still be dominated by the entity store, and the physical store has great development space in the aspects of customization and so on.

It is reported that, in order to guide the healthy development of fur industry, and this year and even for some time to come, the China Leather Association will continue to call on all sides to continuously reduce the import tariff of raw fur and help the industry create a more equitable living environment.

At the same time, we should integrate resources and actively build industrial development public service platforms, including the establishment of similar auction houses, and the construction of e-commerce platforms.

In 2017, the China Leather Association opened cooperation with Jingdong mall to help enterprises expand their market.