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Factors Affecting Fur Prices
Aug 19, 2018

Furs, like other fashions, have a large difference in market prices. The change of fur market, from peak to low, generally takes 3-5 years, a small fluctuation process in 3 years, and 5 years of great turmoil.

The relationship between supply and demand of price changes in the operation of commodity economy is the most important determinant

In the circulation of raw materials, it is generally necessary to go through the following links: farmers - middlemen - semi-finished products processing - garment processing plants - end consumers, where any price fluctuations in any part will cause the price of goods to change. The number of breeding is small, the middlemen are snapping up, the products are marketable, the consumers are actively buying, and the clothing processing factory is snapping up, the price of fur will rise, and vice versa. On the contrary, the amount of farming is very large, the middlemen have no funds to re-invest, the clothing manufacturers do not buy, and the price drops. The raw material of suede is the same as other ordinary commodities. Under normal circumstances, its price is ultimately determined by the relationship between supply and demand. The supply exceeds demand, the price rises, the supply exceeds demand, and the price drops.

However, the factors affecting the change in supply and demand are factors that affect the price of raw materials. According to the current situation, there are mainly the following aspects that affect the relationship between supply and demand:

1. The impact of the world economy

The impact of fashion trends and people's purchasing power. Obviously, as a high-end consumer goods, suede clothing can be afforded by wealthy people. In the recession of the world economy, the amount of money in the pockets of end consumers is less, the purchasing power is declining, and consumer demand is shrinking. On the contrary, the demand for consumption is increased. As a suede commodity of fashionable and elegant consumer goods, the quantity and price of sales must be affected.

2. The effect of the amount of culture on the price of fur

The food is rare, the Finnish fox and the Danish otter are of good quality, but the quantity is small, so the price is very high.

3. The influence of middlemen's hoarding and industry liquidity

Most of the fur circulation has to go through the middlemen. The middlemen play a decisive role in circulation, and sometimes the price of the skin will be affected to some extent.

4, Russia's demand for fur

Most parts of Russia lasted for six months in winter. In order to withstand the cold, Russians have always had the habit of wearing suede and leather goods. In the Russian market, the local people's favor and demand for suede and leather clothing is very high. Russia's annual consumption of molting reaches 10 million, and it has a huge consumer group of about 100 million people. It is very common to wear a variety of suede clothing in Russia. The low-income class also wears cheap Chinese suede. About 5 to 7 million pieces of fur are imported each year, and now Russians are less interested in low-quality suede, and instead demand higher-grade products. The demand for fur in the Russian market also determines the high price of fur.

5. The impact of fashion trends

       In recent years, suede clothing has changed from focusing on warmth to focusing on beauty and fashion. Fur clothing tends to be civilian, and the new winter clothing is no longer full-body fur, but more fur. Most of them appear on the cuffs, collars and pocket covers of the clothes, and the fluffy people feel a warmer fashion. Long-haired needles have become fashionable and the dosage has increased. This has an adverse impact on Arctic fox fur sales.

6. Other uncertain factors will indirectly affect the supply and demand of raw materials.

(1) Climate change

In addition to the symbol of decoration and status, the more important function of fur is to protect the cold. The sales of fur are directly related to the climate. At present, global warming has also affected the sales of fur to a certain extent.

(2) Impact of domestic and foreign policies

Since 2011, the EU intends to enforce the fur and leather labeling regulations. The US Official Regulations on Fur Labels came into force on March 18. In April, Norway banned the domestic fur industry. In 2007, China’s decision on the tax rebate for exporting garment export enterprises and the policy of re-taxing after the late financial crisis all affected the price of fur more or less.

(3) Pressure on RMB appreciation

If the renminbi appreciates, if the garment exporting enterprises can afford it, the impact of the fur market will not be too great. If the company can't afford it, it will cause the company to close down, and the demand of the company will be reduced, which can indirectly affect the sales and use of raw materials.

(4) The impact of anti-fur tissue

Anti-fur activities at home and abroad have become more and more intense. Animal protectionists expressed their protest against the use of animal fur garments in the fashion industry. In the long run, this will have an impact on the future market.

The fur processing industry is a highly polluting industry. Domestic pollution control and various pollution index standards affect the cost of processing. At the same time, the highly polluting industry has also attracted many voices of environmentalist opposition.

Company:Haining Yinqia Garments Co.,Ltd
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