The recent downward plunge of the stock markets in U.S., Japan and Western Europe has some fur traders concerned. Are we headed for another crash?
It has taken a long time to get where we are now. Today, our furs are being sought after by an entirely different consumer in a wholly different marketing environment. This is a direct result of costly and effective long-term promotion and marketing.
Our fur markets are more or less insulated from the economic woes of most developed nations. China’s consumer market is growing at an astonishing pace. Each year, hoards of workers are ascending the economic ladder. According to data released by the Chinese Leather Association, Chinese shoppers purchased 1.5 million fur products last year.
Russia is experiencing rapid growth as a result of economic expansion tied to oil exports. Revenues from oil might fall, but the effect will be short lived.
Wild furs are a real bargain and consumer demand is expanding each year. Many shoppers are just now discovering the uniqueness of our wild fur.
In the short term, the worldwide economic turmoil is expected to have a negative impact on early activity. Money will be more expensive. Those holding cash will be reluctant to let go of it until firm markets are established. Fear will rule. Those willing to invest in the fur trade will wait and assess consumer activity before making strong commitments. Don’t be surprised if this attitude flows downhill to your local buyer.
Our trade might be in for some uncertain weeks or months. This will be sorted out in less than a year.
In the long term, the future remains bright. Our markets will likely expand each year unless there is a total worldwide depression, which is unlikely.