Buyers face dilemma in Hong Kong

SANDY PARKER REPORT, VOL. 31, ISSUE 2, FEB. 26, 2007
The following extract is reproduced with permission from Sandy Parker Reports, Weekly International Fur News. Sandy Parker has been covering the fur industry for more than four decades. For most of that time he has published a weekly newsletter, detailing results of international pelt auctions, wholesale price trends, business developments and movements in the trade, as well as economic and political activities that may impact on it.
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International Fur News
with Sandy Parker
Buyers face dilemma in Hong Kong
BUYERS HEADING TO HONG KONG FOR THE BIG FAIR THAT OPENED AT THE WEEKEND will be facing some of the most difficult decisions to confront them in several years. On one hand, wholesale garment prices are expected to be significantly lower than a year ago, an attraction which ordinarily might induce them to buy more. On the other, their heavier-than-normal inventories back home are signaling them that their open-to-buy positions are down and to curb their spending. Weighing in on the positive side is the confidence that the current season’s disappointing sales are simply a temporary phenomenon due to unfavorable weather conditions and that consumer demand for furs remains basically healthy.
As to the fair itself, this year’s is the biggest in its 25-year history, showcasing over 230 exhibitors in nearly 600 booths in three halls of the Hong Kong Convention & Exhibition Center. This represents a 10% increase over last year’s event, at which $437 million in orders were booked, up 42% from the previous year.
IMPORTS OF FUR APPAREL INTO THE UNITED STATES DECLINED AGAIN LAST YEAR despite sharp price increases over the previous year, which would indicate that the number of units imported was down even more. Following three months of minor increases, the downturn began in April, reflecting fewer purchases at the Hong Kong fair, and continued throughout the rest of the year. According to Commerce Dept. data just released, imports from all sources in 2006 declined 12.3%. This was the second year of decline following five years of increases. The reduced buying was attributed to heavy carryover inventories that resulted from over-optimistic preparations the previous year.
Total fur imports for the year amounted to $232.3 million, compared with nearly $265 million the previous year. This consisted of $119.8 million in mink apparel, off 6%, and $112.5 million in other furs, down 18%.
IN THIS ISSUE:
Dilemma Seen in Hong Kong
Prices Lower, but OTBs Are Down
Buying Expected to Be Cautious
Legend Mink Prices Follow Pattern
Wild Furs also Mostly Lower
For extracts from back issues of Sandy Parker Reports see News Index. Subscribers can access an archive of complete issues at www.sandyparker.com.
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