World sales hurt by mild winter

SANDY PARKER REPORT, VOL. 30, ISSUE 47, FEB. 5, 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
World sales hurt by mild winter
ALTHOUGH MORE SEASONABLE WINTER WEATHER HAS FINALLY SET IN THROUGH MUCH OF THE NORTHERN HEMISPHERE and retail fur sales have assumed a more normal pace, much business has been lost during the recent mild spell. This has resulted in a case of merchandise indigestion of epidemic proportions, and is now expected to have an effect on the February round of skin auctions beginning this week in Copenhagen.
Supplies of uncut skins still in the hands of dealers and manufacturers would ordinarily be described as light but, considering the volume of unsold garment stocks that must be disposed of, they are being viewed as sufficient for the time being. There is no great concern being expressed about the current supply/demand imbalance, which is generally regarded as a temporary situation and likely to be relieved over the remaining winter months. The situation is regarded as far different from that of 20 years ago, when the stock market crash combined with a mild winter to send skin prices tumbling. Not only were consumers cautious about spending for luxuries, but many also were intimidated by strident animal rights campaigns. Today’s consumer has the money and fur is in demand – especially in China and Russia.
CHINA, RUSSIA AND KOREA, WHICH HAVE BEEN THE MAIN POWERS DRIVING UP SKIN PRICES FOR THE PAST THREE YEARS, all have experienced the same weather-driven sales problems since December as have the American and Western European markets. The difference is that those three countries now pretty much control the skin market and the direction that prices will go. Not a problem so long as furs continue to be important in the fashion picture worldwide and those markets remain active, but the heavy garment inventories on hand at this point in the season are expected to put a major damper on nearby buying plans.
IN THIS ISSUE:
World Sales Hurt by Mild Winter
Big China, Russia Markets Felt It
Mink Prices Seen Receding…
…but Sable Prices Climb Anew
U.S. Consumer Confidence Up
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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