Consumption of fur products in South Korea has been on the steady rise over the last few years, mainly driven by a fall in international prices of raw fur amid a protracted global economic slowdown.

According to Lotte Department Store, the country’s leading department store operator, the sales volume of its fur products jumped 16 percent in the 11 months of this year compared to the same period of last year. The sales volume of its fur coats fell 18.5 percent in 2013 on year, but rebounded 10.5 percent and 22.3 percent in 2014 and 2015, respectively. Ironically, a surge in sales volume of fur coats, typical luxury item, has been driven by the economic downturn that has dragged down the global prices of raw fur, allowing more people to afford to buy fur products, market analysts said.

According to sources from the fur industry, the prices of wild fur have declined an average of 20 percent a year during three years from 2013. In the face of a prolonged economic slump, fur demand in China and Russia, where fur consumption is traditionally high, has fallen, leading to a decline in the price of raw fur.

Accordingly, the price of fur products has fallen 10 to 15 percent every year since 2013. Fur products that cost 5 million won ($4,272) in the past are now sold at 2 to 3 million won, according to department stores. To reduce inventories, stores have also rushed to offer special promotions on fur items since summer, helping to boost sales.

Despite a surge in sales volume, the fur industry is facing a serious downturn amid plummeting profits due to lower price tags. Lotte Department Store saw a 1.5 percent decline in revenue from fur sales from January to November this year after posting 15.7 percent, 9.7 percent and 7.1 percent decrease in 2013, 2014 and 2015, respectively.

By Choi Seung-jin

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