In China, it is customary during weddings to purchase the “three golds,” which not only serve as jewelry but also function as a store of value. In some regions, wearing gold is even seen as a symbol of social status, underscoring the high regard in which gold is held by the Chinese people.

As early as a few years ago, a product dubbed “soft gold” enjoyed a brief but widespread craze. Highly expensive and imbued with symbolic connotations of status and prestige, it was none other than fur apparel. Moreover, at the time, the higher the price of a fur item, the more eagerly consumers were willing to pay for it, believing that such high‑priced furs best conveyed one’s social standing and identity—leading to frenzied demand.

Fur coats priced at over ten thousand yuan apiece were particularly popular with consumers, representing a burgeoning luxury category at the time. After all, most ordinary people could hardly afford such high‑priced items; even if they could, few were willing to spend that much on a single garment. For this very reason, owning a fur coat was itself a status symbol, a clear marker of one’s social standing.

Fur is crafted from animal pelts, and the raw materials themselves are quite expensive. The production process also demands a high level of craftsmanship. These elevated costs mean that fur garments simply cannot be priced very affordably—especially mink coats, where prices exceeding ten thousand yuan per piece are far from uncommon. However, for most consumers, fur remains relatively pricey: even the most basic pieces cost several thousand yuan, while higher‑quality items can easily top ten thousand, and some even run into the hundreds of thousands—a sum that amounts to an entire year’s salary for many people.

Fur is so expensive not only because of its high production costs, but also because, a few years ago, it was a status symbol. As the popular saying went at the time: “If you don’t own a fur coat, you’re almost embarrassed to step outside.” Driven by consumers’ blind enthusiasm, fur prices kept soaring, and the more expensive the fur, the more coveted it became. Data shows that during fur’s peak in 2016, annual sales exceeded RMB 95.726 billion.

However, the fur trend did not endure for long. Data show that in 2019 and 2020, both sales revenue and net profits in the fur industry declined. In 2020, the industry’s eight-month sales fell to less than 30% of the level recorded in 2016, while the number of consumers purchasing fur dropped by roughly 30%, signaling a marked downturn in the sector.

To boost sales, fur retailers have been forced to slash prices—going so far as to offer “buy one, get one free”—and cede substantial profit margins. Even with these measures, only a small fraction of consumers are still buying fur. The fur‑market complexes that once enjoyed immense popularity in Northeast China now see virtually no foot traffic, and demand for fur has all but vanished. With the industry in a deep slump, it may soon come to a standstill.

Once, fur coats—priced at over ten thousand yuan—never lacked buyers. Why, then, have they fallen out of favor? Every industry experiences a saturation phase, and the fur sector is no exception: the entire market has become overly saturated, with supply far exceeding demand. Moreover, in 2016, as fur fashion surged, many seized the opportunity to enter the breeding business; now, several years later, that once-booming industry has reached maturity.

The supply of fur raw materials has increased significantly compared with the past, driving down production costs. Most critically, the industry is experiencing a surplus, with mounting inventories of fur products. Meanwhile, the price point of fur—being a high-end luxury item—means that not everyone can afford to spend tens of thousands on it. Relying solely on the previous consumer base, it’s simply impossible to clear the existing stock.

Faced with this reality, the fur industry has resorted to bundled purchases and “price‑cut promotions” to clear its inventory, further squeezing profit margins. The sector also grapples with a persistent challenge: the size of its existing consumer base is shrinking, and overall market demand for fur is declining. Many countries are openly “boycotting” fur products, as public awareness of animal welfare has grown significantly compared with previous years. Moreover, fur no longer serves as a status symbol.

People’s interest in fur has waned, as fur is no longer considered a necessity, and many non-essential industries have been affected.