Thousands of enterprises closed down and leading enterprises suffered serious losses. Why can't fur work?

Wen | Chinese businessmen are as quiet as Mount Tai

Under the epidemic, mink is not as good as Dior, and the market is not bad.

After 20 years of vigorous development, China has become the most important leather production base and retail market in the world. Known as "soft gold", fur was once the top luxury to attract consumers. But now, such a lively scene no longer exists, and now fur is as cheap as grass.

The outbreak of COVID-19 epidemic in 2020 brought the already unstable fur industry into a freezing point. According to statistics, as of August 10, more than 1000 fur enterprises have closed down in Chinese mainland, and the operating conditions of leading domestic fur enterprises are not optimistic.

Wholesalers with excessive fur stocks are in a difficult position.

Located in Suning County, Hebei Province, it is one of the seven fur markets in China, and has been designated as "China fur base" and "fur capital" by china leather Industry Association. Most furs from the main fur producing areas in northern China are transferred here.

However, under the influence of the epidemic, the once bustling market is now empty. There are more fur traders than buyers in the market.

The outbreak of novel coronavirus epidemic this year has made the fur industry suffer one disaster after another. Not only have orders in overseas markets decreased and lost, but also foreign trade orders have shrunk by at least 80% due to epidemic control, trade stagnation or slowdown, import and export and logistics and transportation difficulties.

The year of 20 12 was the year with the highest fur price, and mink was sold to 1500 yuan/Zhang. However, this did not last long, and the price of 20 13 fur began to fall. By the end of 20 13, the good fur price will be in 300 yuan. At that time, leather bought by many wholesalers at high prices became a hot potato. Each piece of leather should be at least lost to 400 yuan or 500 yuan, and some even exceed 1000 yuan.

Struggling farmers set up their own cold storage, waiting for the market to recover.

Shandong province has the largest number of 20 19 minks, accounting for 56.79% of the total number of minks in China. Among them, Weifang, Weihai, Yantai and Qingdao rank in the top ten.

In the same year, Shandong Province was also the province with the largest number of fox skins in China, accounting for 40.20% of the total fox skins in China, followed by Hebei Province and Heilongjiang Province.

From 20 14 to 20 15, a fox skin can be sold for more than 1000 yuan, but at 20 19, the best one is 400 yuan.

The breeding cycle of foxes is about 6 months, and the feed cost is about 300 yuan. In addition, due to the reduction of chicken and duck farming in rural areas, the main feed source of foxes has risen to 1.700 yuan/ton, and the price of corn has also risen to 1.3 yuan/kg, so the fur profit has been further compressed.

From 20 17, farmers have to set up their own cold storage to dry and seal fox skins every year, waiting for the market to pick up.

A few years later, the fur of "soft gold" became "grass"

Although affected by the epidemic, the imbalance between supply and demand in the domestic market may be the main reason. On the one hand, the foreign trade market demand or economic environment in a certain area is weakened; On the other hand, the changes in the consumer market and the different demands of new consumers for products have also changed the competitive environment. For example, there are too many similar products, resulting in a continuous decline in prices.

Around 20 15 years ago, when the market was still relatively good, a large number of farmers followed suit, resulting in a serious backlog of fur dealers' inventory, and the purchase price of fur naturally declined. China fur industry market prospect and investment planning report pointed out that the total profit of China fur industry reached the peak of 8.357 billion yuan in 2065438+2005, and then began to fluctuate. In 20 18, the total profit dropped to 6.996 billion yuan.

In the next few years, China fur industry is also in the downward stage. According to statistics, there were 2011690,000 mink skins, a year-on-year decrease of 436 1%, and fox skins14.43 million, a year-on-year decrease of 17.02%.

1772 fur enterprises closed down, and the leading enterprise Huasi shares lost 20 million yuan.

The plight of the upper and middle reaches of the fur industry chain is closely related to the downstream consumer market, which is also reflected in the industry companies.

As of August 10, there were 44,562 fur and related enterprises in China. Since the beginning of this year, 1772 companies have closed down. As the leader of fur industry and the only fur listed company in China, Huasi has also suffered from the decline of income growth and overall operating pressure in the past five years.

According to the data, the revenue of Huasi in the past five years was 567 million yuan, 502 million yuan, 634 million yuan, 50.65438+0 million yuan and 477 million yuan respectively.

Affected by the epidemic this year, a large number of overseas orders were cancelled, and the company had to take some promotional measures below the cost price, which made Huasi shares turn from profit to loss. The net profit loss attributable to the parent company in the first half of 2020 was1500-20 million yuan, compared with 12060300 yuan in the same period last year.

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