China's fur consumption into the "blowout" industry needs calm
lady's knitted sweater, winter sweater, cardigan ShaoXing Millson Apparel Co., Ltd. , https://www.zjmillson.com
This year, the price of raw fur materials has more than doubled compared to last year. Despite this, Chinese buyers have been consistently appearing at major global auctions, placing large and generous orders. The reason behind this surge is that China's fur consumption is currently in a "blowout period." According to the China Leather Association, the world produces approximately 2.5 million fur items annually, and about 1.5 million of them are purchased by Chinese consumers. The author believes that global fur production has entered a relatively stable phase, while China's fur consumption is on a rapid upward trajectory, with its share of the global market expected to grow further. It is estimated that China now has the capacity for every 100 people to own three to four pieces of fur clothing, marking the beginning of a true "blowout period" in fur consumption.
Unlike the traditional aristocratic association with fur in the West, in China, fur has become a fashion trend among the general public. With a population of over 340 million people who have the purchasing power to afford fur, the market potential is immense. Looking at the performance of Haining Leather City, fur sales increased by more than 30% in 2009 compared to the previous year. This year, over 230 new fur markets have opened, and it is expected that fur consumption will see even greater growth. From a broader consumer perspective, the popularity of fur this year is clearly evident. Unlike short-lived trends, the current fur boom is expected to last for several years—possibly 3 to 5 years or even longer.
Compared to leather, fur products carry higher value and are often referred to as "soft gold." Fur raw materials and finished products can be sold more easily than other commodities, which has fueled both industry enthusiasm and consumer interest. However, it should be noted that competition in the fur industry involves multiple factors such as product quality, R&D, brand marketing, and environmental protection. These factors require companies to have stronger financial resources, design capabilities, production management, and brand operations.
This year, visiting industrial bases in Haining, Liaoning, Tongliao, Xinji, and Hong Kong, I noticed a clear trend: successful companies are focusing on creating high-value, fashionable fur products. By adding value to fur, these companies ensure that the "soft gold" remains valuable in the hands of consumers. Additionally, although China has become a major consumer of fur, the pricing of raw materials is still dominated by major auction houses in Northern Europe and North America. This situation is somewhat embarrassing—despite being a major buyer, China lacks control over pricing, similar to other industries like textiles, machinery, and rare earths.
The shift in fur consumption is now centered in China. As the influential "Chinese buyer" in the global fur market, when will we gain more control over raw material pricing? This is a critical issue for the long-term development of the fur industry in China. It's a question worth serious consideration for the industry as it continues to grow and evolve.