China's fur consumption into the "blowout" industry needs calm
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This year, the price of raw fur materials has more than doubled compared to last year. Despite this, Chinese buyers have been increasingly visible in major global auctions, placing large and generous orders. The reason behind this surge is that China’s fur consumption has entered a "blowout period." According to the China Leather Association, the world's annual fur output is approximately 2.5 million pieces, with 1.5 million of them purchased by Chinese consumers. The author believes that global fur production has reached a relatively stable phase, while China's fur consumption is on a rapid upward trajectory, which will further increase its share of the global market. It is estimated that currently, China has the capacity to provide three to four fur coats per hundred people, marking the beginning of a true "blowout period" in fur consumption.
Unlike the traditional "aristocracy" image associated with fur in the West, in China, fur has become a fashion trend among the general public. It is estimated that there are at least 340 million people in China who have the purchasing power to consume fur, making the market potential extremely promising. Looking at the performance of Haining Leather City, fur sales increased by over 30% in 2009 compared to the previous year. This year, more than 230 new fur markets have opened, and it is expected that fur consumption will see even greater growth. Additionally, from the perspective of overall leather industry trends, the popularity of fur this year is quite evident. Unlike short-lived fashion trends, the current fur boom is not just a passing fad—it is expected to last for 3 to 5 years or even longer.
Compared to other leather products, fur has a higher value and is often referred to as "soft gold." Fur raw materials and finished products tend to appreciate more easily than other commodities, which has fueled both industry enthusiasm and consumer interest. However, it should be noted that the fur industry involves multiple factors such as product quality, R&D, brand marketing, and environmental protection. These factors impose higher demands on a company’s financial strength, design capabilities, production management, and brand operations. This year, after visiting several major fur industrial bases in Haining, Liaoning, Hebei, and Hong Kong, I noticed a clear trend: successful companies are focusing on creating fashionable products that add value to fur, ensuring that this "soft gold" continues to retain and increase its value in the hands of consumers.
Moreover, although China has become a major consumer of fur, the pricing of raw materials is still dominated by a few auction houses in Northern Europe and North America. This situation is quite embarrassing—despite being the largest buyer, China lacks control over pricing. This phenomenon is not unique to the fur industry; similar issues exist in traditional textile, garment, electromechanical products, and even rare earths, where foreign entities hold significant pricing power. This highlights the importance of having stronger bargaining power when suppliers are aggressively competing for market share. As the center of fur consumption shifts toward China, the question remains: when will Chinese buyers gain a stronger voice in determining the price of raw fur materials? This issue is crucial for the long-term development of the fur industry in China and deserves serious consideration.