Popularity Of Fur In Emerging Markets Offsets Plummeting Demand In Western Markets, Overcapacity Feared
Growth in demand for fur has been a godsend for many Canadian furriers. But will this demand last in the face of growing competition and luxury fatigue?
Canada’s Globe and Mail recently posted an interesting article about the fur trade in China, which, along with other emerging markets like Russia, has been a source of steady profits for Canadian fur producers over the past several years. Following decades of decline in the North American market due to changing fashion tastes and ethical concerns, and steadily dropping demand in formerly red-hot markets like Japan and South Korea, China has become a rare bright spot for fur producers and a critical market for Canadian furriers. However, the speed at which the Chinese market has grown has fueled fears that a bubble in the Chinese fur market is about to pop, with these same furriers becoming once again the victims of sudden economic, taste, and capacity shifts.
From the article:
Fears stem from a combination of increasing competition both from local and imported European producers, overcapacity, and even the early indications of “luxury fatigue” in major cities. However, as the article explains, Canadian fur producers are confident that growth in smaller cities should make up for any lessening of demand elsewhere: