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SANDY PARKER REPORT, VOL. 33, ISSUE 25, AUGUST 24, 2009
The following are highlights from the Sandy Parker Reports, Weekly International Fur News, reproduced with permission. Sandy Parker has been covering the fur industry for over 43 years. For the last 33 years he has published a weekly newsletter, detailing the results of all the major international pelt auctions, wholesale price trends, business developments and movements within the trade, as well as economic and political activities that may impact on it.
To receive these reports either in print or electronically, subscribe to Sandy Parker Reports, 21219 Lago Circle, Boca Raton, FL 33433; Tel: (561) 477-3764; Fax: (561) 862-7052; SParker@SandyParker.com; www.sandyparker.com
International Fur News
with Sandy Parker
Economy posing major challenge for fur retailers
FUR RETAILERS, FACED WITH A CHALLENGING SEASON AHEAD, are searching for new marketing strategies that might loosen consumers' purse strings without undermining their own image. Unlike the automobile industry, which has benefitted from the U.S. government-sponsored "cash-for-clunkers" program, the fur trade does not rank among the top contributors to the country's economy and therefore must rely on its own creativity to stimulate business in a difficult economy.
Big discounts, say retailers, are not the answer, particularly for those looking to preserve their prestige image as well as their margins. What can loosen purse strings, some believe, are fashion pieces at lower price points. These might include well-made pieced mink and other section furs, but also the better grades of lower-priced species. Furriers are also stocking more smaller items, including boleros, accessories and accent pieces.
Furriers are also planning more special events to zero in on specific target groups. Among these are charity benefits and trunk shows held in private customers' homes as a way of drumming up extra revenue. In addition, fur specialists have been trying to dispel their strictly furrier image by diversifying into related products that consumers ordinarily would look for in department stores.
WHILE DIFFICULT ECONOMIC CONDITIONS HAVE CAST A CLOUD OVER RETAIL FUR PROSPECTS in much of the Western world, it appears that the huge Chinese market could still move forward, thus propping skin prices. Although that country also was initially hit by the financial crisis that enveloped the world, mainly because its big export business suffered when other countries canceled orders, it has been showing signs of a turnaround that indicate a faster recovery than elsewhere. According to government figures, China's industrial output in July rose 10.8% over last year and retail sales increased 15.2%.
IN THIS ISSUE:
Stores Seeking Fresh Solutions
Bigger Discounts Seen as Wrong Way
Special Events Being Weighed
China Expected to Prop Skin Prices
For back issues of Sandy Parker Reports see News Index.