Fur Industry

Posted on by Chief Marketer Staff

WHILE THE FUR industry is changing to appeal to younger customers, another more subtle-and potentially farther reaching-trend is occurring: greater corporate involvement in this traditionally family run enterprise.

“More hats, scarves and accessories are being designed using fur as a medium, reflecting a greater diversity of product,” says Stephanie Kenyon, marketing director of the Fur Information Council of America.

Until recently, designers focused mostly on full-length fur coats. Today designers are expanding product lines. This includes using fur trim on suits, evening gowns and even handbags. One of the more unusual innovations created is the fur blouse, Kenyon says.

Although it has remained essentially a family operated business, with fathers passing on fur farms or fur salons to their sons, Kenyon has seen large corporations entering the market. Catalogers such as Neiman Marcus and Bloomingdale’s are doing more direct marketing to promote fur sales, she says.

The industry suffered downturns through the early ’90s, but that situation has reversed in recent years, with most analysts crediting the strong economy for improved sales. However, serious opposition from animal rights groups continues.

The number of designers using fur in their collections has quadrupled in the last decade. More than 160 designers now use fur, compared with only 42 in 1985, according to the Fur Information Council. Some of the major designers include Karl Lagerfeld, Oscar de la Renta, Marc Jacobs, Yves St. Laurent and Zandra Rhoades.

Fashion magazines like Vogue and Harper’s Bazaar are selling more ad pages promoting fur than they have in nearly a decade. Indeed, these magazines are the engines driving the fur industry. Publishers highlight trends for retailers, who in turn buy ad space in their magazines-as do designers.

The fur industry generates a total of some $4.4 billion annually. Furriers purchase a variety of raw materials and equipment, as well as insurance and transportation services, according to the Fur Commission USA.

* U.S. fur sales reached $1.2 billion in 1997, reflecting a continuing four-year growth trend. Mink is the overwhelming favorite, followed by sable, fox and beaver fur.

* America’s fur industry employs 50,000 people, including 1,400 retailers, 1,000 fur farms, 160 clothing designers and 100 manufacturers. That doesn’t include approximately 200,000 fur trappers.

* Wisconsin ranks first among the eight leading fur-producing states. Utah is second, followed by Minnesota, Oregon, Idaho, Washington, Iowa and South Dakota.

* American fur farmers produce primarily mink and fox, approximately 3.6 million pelts annually. U.S. farms provide 10% of the world’s mink supply.

* Furriers generally purchase furs at international fur auctions. The major North American auctions are held several times every year in New York, Seattle, Toronto and North Bay, Ontario.

* New York is the heart of the U.S. fur industry, but it’s second to Hong Kong, the world’s largest exporter of fur clothing. Worldwide, Americans, Italians, Russians and Chinese buy the most furs. New markets are emerging in Japan and South Korea.

* More people in New York buy furs than those in any other U.S. city, with Chicago a close second. The next biggest markets for furs are (in descending order) Philadelphia, Los Angeles, Washington, DC/Baltimore, Boston, Detroit, Cleveland, Dallas/Fort Worth, San Francisco, Milwaukee and Seattle.

* Warmth, not fashion, is the main reason for owning a fur coat. Among consumers surveyed, 69% say they wear furs for warmth, compared with 25% who cite fashion reasons.

Sources: Fur Information Council of America; Fur Commission USA; International Fur Trade Federation

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