Fur garment price hikes looming

SANDY PARKER REPORT, VOL. 32, ISSUE 9, APR. 14, 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
Fur garment price hikes looming
FUR RETAILERS CAN EXPECT A NEW ROUND OF PRICE INCREASES at the wholesale level shortly – and not simply the usual consequence of rising skin prices. And not just American retailers, who will be paying more because of their weaker dollars, but retailers almost everywhere who handle fur, leather and other products manufactured in Hong Kong/China or in developing countries elsewhere. These areas are gradually losing their low-wage status that has made their products attractive in the Western world. And the main culprit is rising inflation, which has been pushing up the cost of living in these countries.
There are few places where inflation is more evident than in China, where consumer prices have risen nearly 10% in the past year, almost triple the rate of the previous year. That country’s booming economy and its consumers’ increased spending power have been accompanied by stiff advances in energy and fuel costs as well as well as higher commodity prices and increased labor costs. Those are all having a direct effect on prices of products not only consumed domestically, but also for export. And, despite the Chinese Government’s reluctance to let the yuan float freely against other currencies, its value has appreciated about 10% against the dollar in the past 12 months, adding that much more to the costs for buyers paying with dollars.
IMPORTS OF FUR APPAREL INTO THE U.S. resumed their downward course in February after a brief uptick the previous month. Imports have been sliding for more than a year, reflecting retailers’ more conservative planning. According to the latest Commerce Dept. data, February imports from all sources amounted to $2.8 million, a decline of 19% from the same month last year. The decline was entirely in the non-mink area, which fell 37% to $1.4 million, while mink rose 11% to $1.5 million.
IN THIS ISSUE:
Garment Price Hikes Looming
Skins Rose Since HK Fair…
…but China’s Inflation also Is Up
Mink Rises again in Copenhagen
U.S. Imports Resume Downtrend
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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