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China'S Fur Products Have Little Say In The Russian Market.

2013/5/14 21:37:00 61

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As one of the 7 largest fur markets in China, the market of fur market in Beijing, mainly engaged in fur products, mink garments, mink fur and other products, exports to Russia accounted for about 90% of its gross fur trade. According to incomplete statistics, at present, there are about 500 shops that sell fur, according to the statistics of 2000 wholesale and retail sales per year, and the average price of each piece is 12 thousand yuan. The annual sales of fur can reach 12 billion yuan. At the same time, there are related data shows that in Beijing's fur trade to Russia, every $3 from Russia, there are 2 dollars into the pocket of the Po Po Road business. It is not only Russian businessmen, but also more than 6000 businessmen from Eastern Europe, Africa and Arabia who buy fur clothing every year. The average purchasing amount per person is more than 15 thousand US dollars. The total daily trading volume of the market is about $1 million.


However, in the face of such a booming market, the businesses of the company did not appear to be smiling as imaginative. In their view, though the market is huge, their profits are very small. In the event of the media and fur industry exchange conference held by the representative office of the International Fur Association of China, Ya Po Road business introduced the actual situation of fur clothing export through personal experience.


With the increasing price of fur raw materials, the lack of market initiative, and the transfer of consumer market, the business of Ya Po Road is eager to seek breakthroughs in the current situation. Not long ago, during the visit of President Xi Jinping to Russia, the leaders of the two countries raised new expectations for promoting economic and trade exchanges between China and Russia. Facing the future economic and trade cooperation between China and Russia will also have great potential. Businessmen also hope that China's products will gain more fruits in the European market.


   Profits at both ends of the industrial chain


Russia is a big consumer of fur clothing. Apart from the well-known climate factors, there is a big difference between our clothing habits and ours. The Russian nation had been wearing fur for a long time. Today, fur is not only used for warmth, but its expensive attributes and more fashionable and fashionable designs are almost necessary for Russian women to show their identity and taste. In Russia's demand market, 60%~70%'s fur clothing has been imported from China, and fur clothing in China has a large proportion in almost all cities. Even in the past few years, under the influence of the financial crisis and the European subprime mortgage crisis, the fur market in Russia has maintained an annual growth trend.


However, China's fur products have little say in the Russian market. Zhang Kaibiao, general manager of Maksim Garments Co., Ltd., who runs fur business for many years, said: "our fur merchants are actually" wage earners "of Russian businesses. Because of the limitations of the local market and the high investment risk, Chinese fur merchants can not land there. For a long time, China's fur business can only be in the production and wholesale links, even if it is not willing to, but can not control the market terminal, we have no pricing power, and can only get a marginal profit of about 10%.


Li Liang, general manager of Naxin Jiahe Garments Co., Ltd., Beijing, said: "it is precisely because the vast majority of shops on ya Po Road are the products of OEM and OEM produced by domestic enterprises for Russian brands. In order to become internationally renowned domestic brands, enterprises must seek additional value enhancement in terms of design and publicity." Li Liang, director of the owners' committee of the WAN Bang building in the wholesale market of the Albon Road, has been in possession for 8 consecutive years since 2004. Every year, the owners and merchants have organized the festival at the cost of the Alba Road, so as to enhance the popularity and fashion of the market.


On the other hand, the cost of raw materials such as feed and vaccine is directly related to the soaring price of raw materials. In view of the supply of raw materials for fur industry in China, because of the rapid development of aquaculture industry, the farmers' income has been good under the support of relevant policies, and the profit rate has been higher than that of fur clothing manufacturers. In this way, fur manufacturers in the middle of the industrial chain can be regarded as the least profitable part of the fur industry chain.


   Import tariffs need to be adjusted.


Moreover, the high import tariffs also restrict the fur manufacturers to seek higher profits to a certain extent. China is the largest country of fur animals in the world. By the end of 2011, statistics showed that China produced 16 million mink fur, 6 million fox fur and 12 million raccoon fur. Despite its rapid development, it can only meet the domestic demand of 60% fur production. Not only that, but because of the gap between varieties and technology, many manufacturers import high quality fur raw materials from abroad to meet production needs every year. According to statistics from the International Fur Association, China's gross imports of fur raw materials increased by more than 250% over the past 10 years. Import tariffs are at a higher level than other countries, which also limits the overall competitiveness of enterprises to a certain extent.


Regarding this, the Chinese food, animal and Animal Import and Export Chamber of commerce is responsible, the chamber of Commerce has actively communicated with the relevant departments of the state in this regard. It is hoped that through appropriate adjustment of import tariff, the price advantage of import production enterprises will be improved to a certain extent, so as to make the industrial chain structure more reasonable.


   The focus of the market is changing.


In recent years, although Russia is still in the leading position of fur clothing export market in China, the fur demand pattern is changing quietly. With the gradual growth of the market in Japan, Hongkong and other places in recent years, the share of Russian market demand is decreasing. The demand of Japan, Korea, Italy, France, Spain, the United States, Turkey, China and Hongkong is increasing. The proportion of fur clothing exported to Russia has fallen from 53% in 2006 to 32% of total exports.

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