Chinese, Russians Going Luxury,
Sable Prices Up as Much as 25%,
$9,100 Pelts Go to Russian,

THE INTERNATIONAL FUR TRADE IS GEARING UP FOR THE NEXT RETAIL SEASON WITH PRICES OF MINK, THE MOST POPULAR SPECIES OF ALL, AT HISTORICAL HIGHS AND SHOWING FEW SIGNS OF LEVELING OFF. How consumers will react to them is mainly a matter of conjecture at this time; only the season itself will prove whether any concerns are justified. The irony is that, while mink and other luxury furs have traditionally been confined mostly to people of means in Western capitalist countries – and whose demand largely determined the price – today’s high levels are the result of the growth of luxury markets in such countries as China and Russia, which now dominate the skin market.

IN THE OFFICIAL REPORT OF ITS RECENT SALE, KOPENHAGEN FUR NOTED THAT A NEW WORLD RECORD PRICE FOR MINK WAS SET AT DKK379, OR $72 U.S. In the report, issued too late for inclusion in last week’s issue, the company also described the sale of more than 5 million skins as realizing a historical high of more than DKK2 billion, or $380 million, an average increase of 3.4% in Danish kroner, or more than 10% in dollars due to a shift in currency values since the previous sale, which confirms our report. The sale attracted more than 600 customers, including 405 from Hong Kong/China. Greece, Russia and South Korea also were well represented. The company said its huge capacity was stretched to the limit and its kitchen served more than 13 tons of food. Also, it opened 42 new accounts.

SABLE PRICES ADVANCED AS MUCH AS 25% LAST WEEK AT SOJUZPUSHNINA, WHERE RUSSIANS AND CHINESE COMPETED ACTIVELY WITH TRADITIONAL BUYERS FROM ITALY, ENGLAND, THE U.S. AND GREECE. In fact, as another example of the Russians’ new spending power, a record price of $9,100 per pelt was paid for the top bundle of Barguzins by Elena Furs of Russia, presumably for a specific retail client. Frequently the target of hot competition, usually for local publicity value, the top sable bundles have occasionally brought over $2,000. Last year’s went for $1,450. The top bundle usually consists of about 20 skins – in this case, over $180,000 for the prospective garment’s raw material alone.


Regards, Redfox

Fairs Seen Ending on High Note
NAFFEM Vendors Optimistic
Kastoria Flying in Russians
Consumer Confidence Edges Up

THIS YEAR’S SERIES OF INTERNATIONAL FUR FAIRS WINDS UP THIS WEEK IN MONTREAL AND KASTORIA,WITH PROSPECTS FOR BOTH CONSIDERED BRIGHT IN VIEW OF THE SUCCESSES OF THE FAIRS ELSEWHERE. With the recent winter selling season having been more successful than retailers had anticipated – thanks largely to the sustained cold weather worldwide which trumped still-ailing economies – most stores wound up with healthier open-to-buy positions. While this year’s higher prices for articles of mink and most other furs means higher replacement costs – a matter of some concern – the same was true last year, but comfort-conscious consumers bought anyway.

A SAMPLING OF THE MONTREAL FAIR’S VENDORS LAST WEEK TURNED UP UNINHIBITED OPTIMISM, AS OPPOSED TO LAST YEAR’S ‘CAUTIOUS OPTIMISM’. There was some anxiety over the price issue, but the majority were not overly concerned about it. Considering retailers’ exposure to the higher prices at the preceding fairs, they felt there would be little, if any, sticker-shock as there was last year. They are aware that their accounts will not only be searching for fresh styles, but also items that fit into their best-selling price brackets. Resources with a reputation for innovation claim their accounts will not be disappointed.

THE 36TH ANNUAL KASTORIAN FAIR OPENS THURSDAY FOR ITS FOUR-DAY RUN, THE OPENING DAY TO BE HIGHLIGHTED BY AN EVENING FASHION GALA IN THE TOWN’S INDOOR STADIUM. Until a few years ago, this fair in its remote location in the mountains of northern Greece, was attended largely by the exhibitors’ employees and their families. More recently, it has benefitted from the booming Russian market, which not only has dominated the annual show, but also has kept Greek manufacturers – and thousands of workers – busy for most of the year. American Legend is this year’s grand sponsor, with North American Fur Auctions and Kopenhagen Fur also strong supporters.

Regards, Redfox

Mood Upbeat at Montreal Fair,
Event Draws ‘Serious’ Buyers,
Vendors with ‘Right’ Goods Do Well,
Economic Outlook Brightens

THE ATMOSPHERE WAS DECIDEDLY UPBEAT AT THE MONTREAL FAIR LAST WEEK, REFLECTING ANOTHER SUCCESSFUL WINTER SEASON THAT LEFT RETAILERS IN A GOOD OPEN-TO-BUY POSITION. Exhibitors were prepared with the fashions and other items they expected would be most interesting to their accounts and the fair’s organizers drew plaudits for the overall setup. In short, the scene was set for the North American Fur & Fashion Exposition to be as successful as this year’s fairs elsewhere. But it turned out that American retailers, despite having enjoyed two good seasons in a row, were still not ready to ignore further price increases and their still-ailing economy.

OVERALL BUYER ATTENDANCE AT THIS YEAR’S EVENT WAS SAID TO BE UP ABOUT 20%, BUT THIS MAY NOT HAVE BEEN APPARENT TO THE CASUAL OBSERVER. The reason, according to an official, is that many came for less than the three-day run – some for only one day – so that at any given time the traffic through the aisles may have appeared lighter. The opening-night fashion gala, which drew high praise for its content and organization, was attended by more than 400, a larger crowd than last year. The organizers also continued their policy of flying in Russian buyers, but this year only 12 arrived. Others opted for the same deal offered by the Kastoria fair, also held last week and much closer to home.


AT PRESSTIME, THE FOUR-DAY FAIR IN KASTORIA WAS APPROACHING ITS MID-POINT AND THE ACTIVITY WAS REPORTED TO BE GOOD. As had been expected, most of the foreign visitors were either Russians or from former Soviet-bloc countries. The fair’s organizers had arranged charter flights for 260 Russians, believed to be mostly established accounts of some of the exhibitors. Preliminary reports were that, as successful as the new fair in Athens may have been – which also catered mainly to Russians – it may not have detracted too much from Kastoria’s potential sales. That may not be known until the end of the year, after all the reorders are counted.

Regards, Redfox

Fairs End Successful Series,
Kastoria Provides Strong Windup,
Russians Again Main Buyers,
Hong Kong Manufacturers Busy


THE FINAL EVENT IN THE FUR-ORIENTED TOWN OF KASTORIA ATTRACTED ONE OF THE BIGGEST CROWDS IN ITS 36-YEAR HISTORY. It also was its largest presentation yet with 147 exhibitors, about a dozen more than last year, the majority local manufacturers and those from nearby towns. Russians were by far the largest number of buyers, which also included other Eastern Europeans and a sprinkling from elsewhere. The four-day fair attracted 1,200 commercial visitors, including 345 from Russia and its former affiliates.There were 42 from Turkey, 318 domestic buyers and 306 from other markets. This was in sharp contrast to earlier years when the thousands in attendance consisted almost entirely of the local fur trade, its workers and their families, the foreign visitors numbering only in the dozens. A major hurdle for many foreign buyers was Kastoria’s remote location in the northern mountains of Greece. Although attempts were made to relocate it to a more easily accessible venue, such proposals were voted down by the town’s elders. In recent years, the local airfield has been enlarged and extensive roadwork has eliminated the dangers in driving through the mountains.

MEANWHILE, HONG KONG MANUFACTURERS ARE DESCRIBED AS HAPPY WITH THE BUSINESS SO FAR, MUCH OF IT WITH RUSSIA, BUT ALSO NORTH AMERICA, EUROPE, KOREA AND ELSEWHERE. Although the Russian business is said to be developing nicely, especially from big accounts, producers reportedly are not accepting orders from smaller retailers unless they pay up front. They’re also not interested in orders for only four or five of a style, which contribute to less efficient production schedules. Their major domestic accounts, many of which are owned or controlled by manufacturers, don’t usually order as early as foreign buyers, but are assured of timely delivery because of the relationships. Wholesale prices, which have largely been adjusted in line with the skin price increases that have taken place at the auctions since their collections were introduced in February, are reported as stable at this time.

Regards, BGL

Orders at Fairs More Normal,
China, Russia Still Gearing Up,
Mink Seen Holding at Highs,
Wild Furs Move at Harvesters

THIS YEAR, ENCOURAGED BY THEIR EXPERIENCE IN THE PAST TWO SEASONS THAT DEMONSTRATED THIS BUSINESS IS STILL VERY VIABLE, THEY SHOWED LESS HESITANCE IN PLACING THEIR ORDERS – EVEN CONFIRMING SOME OF THEM A BIT EARLIER THAN USUAL.But unlike their colleagues in China, Russia and Eastern IN THIS ISSUE: Europe – many of them new and looking to grow – most retailers in North America and Western Europe in these difficult times would be content with profits from their existing operations. What they purchased at the various fairs mostly reflected a replenishment of inventories that were depleted as a result *China, Russia Still Gearing Up of the cold and harsh winter. That they may have spent more money this year was mainly due to the higher prices. If they wound up getting more units, it’s most likely because they took fewer long coats and more smaller items and inexpensive accessories.

VIRTUALLY THE REVERSE IS NOW TRUE IN CHINA, RUSSIA AND FORMER SOVIET-BLOC COUNTRIES WHERE CAPITALISM HAS BEEN REARING ITS APPARENTLY WELCOME (BY CONSUMERS) HEAD. With their personal income rising and giving many of them greater discretionary spending power, people who for generations could afford fur only in the form of hats or collars to combat the cold are now sporting full garments and the fur of choice increasingly has been mink. This explains why mink prices have been reaching new heights at the auctions and why they may go even higher, barring any unforeseen catastrophes such as the 2008 experience.


Regards, BGL

Mink Prices Reach New Plateau,
Wild Furs also Up at NAFA,
New Hikes at Wholesale Seen,
Luxury Markets to Grow

THOSE TWO MARKETS WERE THE MAIN PLAYERS AT NORTH AMERICAN FUR AUCTIONS’ FINAL SALE OF THE SEASON, PUSHING PRICES UP AS MUCH AS 15% OVER MOST RECENT LEVELS. But an indication of what may be expected at the remaining auctions – in Europe – appeared at the opening of the NAFA sale, when the IN THIS ISSUE: company offered its breeders and lowgrades. The room was filled with nearly 500 buyers and the bidding was described as vigorous throughout the day. “While it can be difficult to measure price levels for Section III and breeders,” the company reported, “price advances were clearly evident in all *New Hikes at Wholesale Seen categories.” Hong Kong/China dominated the buying of Section III (lowgrades) and was very active throughout the breeder sale with good support from Greece (mainly for Russian accounts) on the better black and mahogany breeders.

THIS NOT ONLY INDICATED THE DIRECTION THAT THE REGULAR-QUALITY NAFA GOODS WOULD TAKE, BUT ALSO WHAT WOULD LIKELY HAPPEN AT FINNISH FUR SALES THIS WEEK AND AT KOPENHAGEN FUR A WEEK LATER. The latest elevations at the skin level were also expected to be reflected in new advances in wholesale garment prices. Although Hong Kong/Chinese manufacturers have made some upward adjustments since their fair in February – even anticipating further skin hikes – the expectation is that the most recent advances, along with higher energy and labor costs, will bring higher prices for new orders as well as reorders.

Regards, BLG