Consumer credit still tough; US fur imports plunge

SANDY PARKER REPORT, VOL. 32, ISSUE 33, OCTOBER 27, 2008
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
Consumer credit still tough; US fur imports plunge
FOR THE INTERNATIONAL FUR TRADE, THE CARDS FOR THIS YEAR’S GAME were already dealt before the financial markets crumbled, with the auction season having ended on a high note. Most American and Western European retailers have placed their orders based on pre-crisis considerations. Russian and Chinese retailers only recently started to buy and initial reports describe those orders as “normal.” How the game plays out now depends on how the merchandise moves at the retail level and to what extent consumer spending will be affected by such factors as higher food and fuel prices, reduced income and tighter credit.
What is not yet known is how extensively Chinese and Russian retailers will prepare for the season ahead. Fur sales in those countries have been growing by leaps and bounds in line with their booming economies and consumers’ increased disposable income. But both have been caught up in the current international financial mess, the Russians hit by plunging oil prices and the Chinese by a drop in their export trade and other problems. Since those two consume the bulk of the world’s fur supply, even a hiccup in their domestic sales could have serious implications.
AMERICAN RETAILERS’ CONSERVATISM SHOWED UP VIVIDLY in the August import figures released last week by the Commerce Dept., indicating the steepest monthly decline in more than a year. Imports of fur apparel from all sources dropped almost 37% in value from the same month last year – despite a sizable increase in average prices, which would indicate an even bigger drop in comparable units. The month’s total amounted to $15.6 million, which consisted of $5.8 million in mink apparel, down 44%, and $9.8 million in other furs, down 31%. This brought the eight-month aggregate to $68 million, a decline of 19% from last year’s period.
IN THIS ISSUE:
Consumer Credit Still Tough
Holiday Season Under a Cloud
Situation Seen World Wide
China, Russia Markets Key
August U.S. Imports Plunge
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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