China Leather Association: The Market Demand Of Domestic Fur Industry Is Rising

China Leatherwear Zhu Renyong, honorary chairman of the Association's fur professional committee, introduced the development experience of foreign fur animal breeding industry. He first summarized the overall situation of the global fur production outside China, and introduced that the developed countries in Europe and the United States have promoted the benign development of the industry and brought good benefits to the local fur industry by establishing advanced management and sales models. At the same time, he especially mentioned the serious concern about the extensive development of China's fur animal breeding industry, which led to a significant decline in the quality of the leather produced in China for the sake of temporary economic losses, further widening the gap between Europe and the United States.

China's fur animal breeding industry is in the stage of blind extensive development, which is not only poor in quality, but also insufficient in the number of high-grade products. The raw materials of wool in China are divided into coarse fur and fine mixed fur. Due to the market pull, the fine mixed fur has developed rapidly, especially the mink, fox, raccoon dog and otter rabbit. However, they still cannot meet the demand of the domestic market. At present, the domestic mink, fox and raccoon dog can only meet 60% of the market demand, while the high-end brand raw material skins are very few and still need to be imported from abroad every year.

In recent years, the frequent activities of international extreme animal authoritarianism organizations have also had an impact on the development of China's fur industry. With the transfer of the processing center and consumption center of the world fur industry to China, extreme international animal rights organizations hype the practice of individual non-standard skin taking in remote villages and towns in China, taking a partial view and exaggerating the facts, which not only damages the image of our ancient civilization, but also greatly affects the expansion of our domestic and foreign markets.

The auction system has been formed in the western fur developed countries for a hundred years, while the fur trading mode in China is relatively slow, and the fur trading is still relatively primitive, still in a decentralized free trading mode. Due to the long-term information asymmetry between the breeding industry and the downstream fur processing industry, everyone follows their feelings. If the market is good, it will go up greatly, and if the market is bad, it will go down quickly, causing great fluctuations in the price of the leather market, frustrating both farmers and fur processing enterprises, and seriously affecting the sustainable development of the industry.

The high import tariff of fur raw materials affects the fair competition of enterprises. The raw material leather resources of mink, fox and raccoon dog in China are mostly middle and low grade products, and the number is insufficient. Enterprises will import some high-grade raw materials from abroad every year for transformation and upgrading. However, since China's fur import tariff was formulated in the era of planned economy, it is still high, although it has been adjusted after joining the WTO, Raw water 15%, raw fox skin 20% and raccoon dog skin 20%. At present, the main fur producing countries in the world, considering that fur is a fashion product with high added value, mostly adopt low tariff or zero tariff for raw leather import, so Chinese enterprises are significantly higher than foreign enterprises in the cost of raw leather import, which has led to the unequal competition of Chinese fur enterprises in the international market, Exports fell sharply. In addition, high tariffs have bred some incidental phenomena, and non-standard import trade has sprouted. Not only the reputation of the industry is damaged, but also the national interests.

The environmental protection awareness of the industry is not strong, which affects the sustainable development of the industry. The whole industry has responsibilities in the upstream, midstream and downstream, such as feces from the breeding industry, sewage discharge from nitrate dyeing, chemicals contained in fur products, etc. Of course, relatively speaking, the pollution in the process of nitrate dyeing is more prominent. In recent years, we have constantly received complaints from foreign traders. Although the industry has made a lot of efforts in environmental protection, it is still far from the requirements of the domestic and foreign markets that are constantly improving. The environmental awareness and action of the fur industry are worse than those of the leather industry, and we must take precautions.

The scale of the enterprise is small, the fur products are repeated at a low level, and the middle and high-grade products are scarce. At present, there are more than 4000 fur dyeing and product processing enterprises in China, and only 600 enterprises above the designated size, most of which are small enterprises. Most of the export products are OEM products. Most of the domestic products are low-level repetitive. The fashionable and precious raw materials are used for the production of low-grade products. The market is only supported by consumers' favor and curiosity for precious fur, but this will not last long. At present, fur products have begun to move towards the stage of low price competition, and the enterprise brand awareness is weak. There is no recognized well-known brand in the industry clothing The development experience and lessons in the last two decades of the last century, when products enter the stage of low price competition, if the product structure is not adjusted in time, the industry will decline significantly, and it is difficult to continue to develop. Therefore, fur enterprises must transform and upgrade in terms of enterprise management, brand building and market operation, and seek new development modes.

Market information at home and abroad is not smooth, and the industry develops blindly. Since China's fur exports are mainly OEM, we can only understand the information of foreign markets indirectly, and it is very difficult to expand the market. At present, the domestic market is the main market, accounting for more than 80% of the total market. The main forms of the domestic market are production bases and furs, urban wholesale markets, specialty stores and department stores of different levels. All kinds of sales forms are not connected with each other, follow the feeling, compete with each other and develop blindly. It is also easy to mislead the blind development of upstream and fur processing, which seriously affects the strategic goal of sustainable development of the industry.

At the meeting, the representatives at the meeting passed the Regulations on the Working Group of the Fur Professional Committee of the China Leather Association, and held a heated discussion on the relevant standards, the statistics of the number of fur animals raised in China, the upstream and downstream docking mode of the fur industry, the key points of raw hides preservation and other hot issues in the industry.