NORT H A MERIC A N F UR AUCT IONS
NAFA NEWS President's Message Ranchers in China
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Taking Studio NAFA to new destinations
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NAFA hosts a magical night in Beijing
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New 2011 signature garment images unveiled
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2011-2012 NAFA campaign
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2011 Leonard Werner Scholarship recipients
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Market Update
October 2011
2012 Profit Rebate of 3.5% Announced page 1 65 Skyway Ave. Toronto, ON M9W 6C7 Canada | tel: +1.416.675.9320 | fax: +1.416.675.6865 | www.nafa.ca
President's messa ge Dear Rancher, Another extraordinary auction year has come to a successful and record-setting close and all eyes are now sharply focused on next year’s market. In an effort to further reward our loyal shippers for an exceptional year, NAFA is increasing its guaranteed profit sharing dividend to 3.5 percent, up from 3 percent for the 2012 auction season. This is a 100 percent cash payment rebate back to our consignors that together with our normal volume rebates, makes the cost of selling with NAFA in 2012 at an all-time low. NAFA is extremely pleased and proud to be able to guarantee this unprecedented and un-matched level of cash rebates to all of our loyal shippers. For us, it is very important that our rebate programs are based upon a system of simple annual cash payments back to our consignors without any hold-backs, tax deductions or complicated A-B-C share structures. NAFA’s rebate programs are clear and defined – you get the cash in your pocket after each auction season when you can use it the most. We don’t believe in making vague commitments about when you might get prior years’ rebates paid out to you with multiple strings attached. It is still early in the season to be making solid predictions but there is optimism that the 2012 auction season could be another successful one. Economists continue to predict that China’s economy will grow this year, despite the ongoing uncertainty in global markets. In Korea, August 2011 sales figures exceeded last year’s month-to-month and that market continues to look positive. In Moscow, the retail season is just starting and there is concern about the new price levels; however our promotional activity has been very well received and we are excited about our position in that market. A full market report is included in this newsletter. NAFA has received a lot of accolades on our new website and especially since it became multilingual in July. Most articles and news stories are now in all of the languages of our target markets – Russian, Chinese and Korean. This new multilingual site will assist us in marketing our high quality furs with buyers in these key fur markets. Our marketing and promotions department has already had its first fall fashion shows in China and Russia, showing off our new campaign images for the 2011-12 season. Our Black NAFA Limited Edition label has received extensive editorial coverage in all major market fashion magazines and we are optimistic about the future potential of this program. NAFA’s agents have also started their buyer solicitation program in order to ensure that we have strong buyer support at our upcoming auction. Over the course of the summer, there’s been a beehive of activity at NAFA. Extensive renovations are taking place at our building at 65 Skyway Avenue. A fresh modern look is being given to the front lobby, existing office space and cafeteria. The upscale and contemporary new look for NAFA’s building reflects the fact that NAFA is the market leader in selling the highest quality and most diverse collection of furs in the world. I look forward to another exciting and profitable auction season with continued rewards for the ranchers who entrust their product to NAFA. Sincerely,
Michael Mengar, President & CEO
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Ranchers In Awe of China Market Nine days on a whirlwind tour of China left of NAFA’s rancher tour group speaking in superlatives. The words “biggest” and “best” were often heard along with “amazing, incredible and astonishing.” After touching down in Beijing on September 17th, the activities for the group were nonstop. To get a feel of the culture, tours to the Forbidden City and Tiananmen Square started the adventure. For a glimpse into the local fur industry, the group’s next day was spent visiting Ya Bao Lu, the well-known Russian wholesale fur market, as well as China Tuhsu, one of the largest manufacturers in the country. The intrepid travelers set off early on day three for the experience of a lifetime - a climb on the Great Wall of China. Without any rest, they returned to the hotel, did a quick change from rugged adventurer to chic trendsetter and were whisked away to NAFA’s annual media event. The media was impressed with their attendance and many ranchers found themselves on Fashion TV and in photos on blogs and in newspapers. There was no rest yet as Dragon Hu, NAFA’s China agent and acting tour guide, assembled the group the next morning for the flight to Shanghai. The contrast in cities was immediately apparent and set the stage for seeing much more of modern China. The following days offered excursions to Hai Ning and Yu Yao, two of China’s major fur manufacturing areas. These massive wholesale and retail markets left everyone in awe of the magnitude of the fur industry in China. The last stop on the tour was Hong Kong. After passing through Customs and Immigration, the voyagers stepped into yet another dimension of China. This special administration region was long considered “The Gateway to China” and still serves the fur trade as such. This financial powerhouse boasts a skyline beyond imagination, culinary delights and some of the world’s best shopping. A harbor cruise and dinner at a secluded island cove marked the end of the journey. The cloud cover and falling rain that marked the edge of a typhoon did nothing to dampen the spirits of “the NAFA family” that had evolved. To experience a culture over 5,000 years old and, at the same time, witness the future of our fur industry is an extraordinary opportunity and one NAFA was pleased to share with our ranchers.
market update The world’s economic markets have been on a jittery roller coaster ride in recent weeks but there are still some positive signs from economists and other experts on the upcoming auction season.
China: China, once again, has the largest growth potential of all of the world’s major fur markets.
Its economy has grown, on average, between nine and 10 percent a year in recent years. The outlook for 2012 remains equally positive, with experts predicting growth of eight percent or more. China is well positioned to weather the global economic turmoil on the financial markets – indicators point to the fact that factory activity picked up in September and inflationary pressures eased slightly. Buyers in China are expressing cautious optimism for the coming year – recent visits with pelt dealers by our agents indicate that stocks are low and there is a need for more high-quality North American mink. The only concern being expressed right now by buyers is the higher price levels – with a bit of concern whether this will have an impact at the retail level.
Greece/ Russia: There has been ongoing concern expressed over the higher prices of mink, including black male pelts, by some of the furriers. On a positive note, the enhanced Black NAFA label has taken a leadership role with most of the haute couture retailers in Russia. It is also important to note that 20 of the Top Lots in our February and May auctions were purchased by Russians – this indicates that the buyers in this important market do covet quality.
Economists are predicting growth for 2012 in Russia but predictions have been scaled back as a result of the on-going market jitters and the debt crisis involving Greece. The main question mark at this point in the year is how the debt situation in Greece will affect global markets overall. We are hoping that this ongoing economic crisis in Greece will not have too much of an adverse affect on furriers.
Korea: South Korea boasts a developed economy that is currently ranked as the 15th largest in the world. The 2010
growth rate was noted as 6.1 percent and the unemployment rate is a low 3.3 percent. August 2011 sales figures exceeded last year’s month-to-month figures.
Korea was one of the few countries able to withstand the 2008 global recession. Minor adjustments to the economy were experienced but no major setbacks in banking, property or production occurred. Korea has been a bright beacon for the fur trade for the last few years. Exceptional sales in 2010 gave the Koreans tremendous buying power at NAFA’s February and May auctions. Although buyers complained about high prices and had concerns about price resistance at the retail level, Koreans covet quality and luxury goods, which help NAFA’s agents market our renowned and high quality brands. Modern Korean women are extremely fashion and brand conscious and desirous of luxury goods. The fact that they recognize quality is advantageous for the NAFA label, particularly Black NAFA. The benchmark price for the finest quality mink is set by the Korean market.
Studio NAFA to New Destinations As the fourth year of summer sessions at Studio NAFA in Toronto come to a close, plans are underway to continue the seminars at outreach programs in major fur producing markets. China, where the first of the outreach programs were held during the past year, will again be a focal point in this fall’s tour. Beijing’s Central Academy of Fine Arts will be the first venue for the designer workshop. Fashion designers and designers from the fur trade will be invited for the creative workshop. New to the Studio Outreach program will be the countries of Greece and Turkey where seminars are planned for December and January. NAFA is working closely with the Hellenic Trade Association in Kastoria and the Federation of Fur & Leather Manufacturers in Istanbul on an expanded curriculum. Studio NAFA’s Outreach program will continue to grow and expand to meet the needs of our customers and the fur trade in all major markets. Page 3
NAFA Hosts a magical night in beijing The Jing Yuan Art Center in the trendy Image Base Complex in Beijing was the venue for NAFA’s annual media event held on September 20th. Invited guests to “Midnight Magic” were given the opportunity to experience the magic and mystery of the latest designer fur collections for 2011-2012. As the many media groups of fashion editors, television crews and newspaper photographers descended upon the show site, they stopped short of entering the building to capture the images and ambiance of this night that promised to be magical. Upon entering the hall, the wonderment of the evening began to unfold. A starlight effect captivated the crowd and there was a buzz about how fashionable fur was and NAFA’s leading position in China. Fashion TV was on the spot for interviews and paparazzi cameras flashed incessantly. Following the cocktail reception and sumptuous buffet, Diane Benedetti, NAFA’s VP of Advertising & Promotion, officially welcomed the many VIP guests including Gregg Dolinsky, Sr. VP of NAFA and a delegation of US and Canadian mink ranchers as well as Ms. Josiane Simon, Sr. Trade Commissioner from the Canadian Embassy. Also present were Zhang Zhi Feng and David Ubl who had highlights of their collections featured in the show. Twelve clock chimes marked the start of the show. The collection of David Ubl exploded on to the catwalk in combinations of NAFA Northern Raccoon, Beaver and Otter. Zac Posen showed oversize jackets and capes in dyed NAFA Mink and NAFA Fox whilst Bibhu Mohapatra crafted reptile print leathers with his choices of NAFA Northern wild furs. Guy Laroche also opted for trendy new looks in the same technique and went on to highlight very Parisian looks in natural shades of NAFA Mink. Michael Kors offered an intricately tailored collection in NAFA Mink and NAFA Northern Fisher in deep rich colors. The collection of Gianfranco Ferre featured chic designs in Black NAFA with accents of soft shades of NAFA Mink. The Cadano presentation highlighted natural, dyed and printed NAFA Mink in a range of silhouettes that captured a feeling of youthful femininity. Also captivating in shades of NAFA Mink were the glamorous fur coats that Dennis Basso is so very famous for. Equally alluring were the lace-trimmed designs of NE Tiger in Black NAFA Mink. The finale left everyone in awe as models paraded down the catwalk in haute couture designs in Black NAFA. The 2011-12 NAFA signature piece created by NE Tiger served as a fitting close for the show. The stunning embroidery adorning a floor-sweeping gown of Black NAFA depicted a fable in Chinese mythology bestowing a mystical touch. As guests departed, they expressed their admiration for the beauty of NAFA of furs and their enjoyment of what truly was a magical event.
N ew 2011 S ignat ure Ga rmen t
In the world of fashion, black has always held a place of distinction, be it Dior’s little black cocktail dress, Armani’s androgynous black boardroom suit or Chanel’s iconic black quilted handbag. In the world of fur, black mink is the most popular of all furs and Black NAFA reigns supreme as the most prestigious of all. Each year NAFA invites a designer to create a very unique garment in Black NAFA to serve as the signature piece of its international marketing campaign. This year, Zhang Zhifeng of China’s most exclusive fur design house, NE Tiger, was selected for this honor. Mr. Zhang enthusiastically accepted the request and noted, “Black NAFA has always been one of my favorite furs for design. The soft, silky touch and luxurious texture make it a designer’s dream fabric.” His floor-sweeping gown in Black NAFA is jewel encrusted and sensuously body hugging. The focal point, however, is a stunning silk embroidery that delicately relates a story of Chinese mythology. The beauty of Black NAFA Mink is timeless and universal. The expression of culture through fashion has added to the mystique of NAFA’s signature garment. Mr. Zhang has captured some of the wonderment of China and, without a word, shared a magical story.
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2011- 2 0 1 2 N AFA Campaig n Expressing the Natural Beauty of Fur If a picture is truly worth a thousand words, then the stories of this year’s NAFA campaign will be endless. After 15 days of photo shoots this past summer along with countless hours spent previewing and retouching the captured images, the final photographs began to emerge. The theme of the 2011-2012 campaign is night life adventures. Cody Bokshowan, NAFA’s Art Director, explained, “The retail customer for our NAFA products tends to be fashion forward. She knows quality for sure but she wants something new and trendy and she leads the lifestyle to warrant this.”
2011 LEONARD WERNER MEMORIAL SCHOLARSHIP RECIPIENTS This year we had many excellent applications for the 10 awards, making selection of the winners very difficult for our Scholarship Committee. We are pleased to announce the following recipients of the 2011 Leonard Werner Memorial Scholarship. Julia Flinton
daughter of Robert Flinton, a wild fur shipper from Williams Lake, B.C.
Megan Jergenson
daughter of Duane Jergenson, a mink rancher from Glenwood, MN
Bettina Mazereeuw
daughter of Pieter Mazereeuw, a mink rancher from Scotland, ON
Lindsay Hansen
daughter of Todd Hansen, a mink rancher from Franklin, ID
Danielle Boduk
granddaughter of Jim Bogus, a mink rancher from Carrolltown, PA
Brian Erickson
grandson of Harry Erickson, & son of Robert Erickson, mink ranchers from Wild Rose, WI
Kirsti Toivonen
daughter of Kelvin Toivonen, a wild fur shipper from Kaministiquia, ON
Hanna Allaman
daughter of Tim Allaman, a fox rancher from Oquawka, IL
Chantal Valiga
granddaughter of George Valiga, a mink rancher from Phillips, WI
Stephanie Vanderlaak daughter of Pete Vanderlaak, a mink rancher from Carrying Place, ON NAFA congratulates these 10 outstanding individuals and wishes them every success in their future academic and career endeavours.
NAFA'S 2012 Preliminary
Auction Schedule NAFA is pleased to announce our preliminary selling schedule for 2012. February 16 – 22, 2012 (on show Feb. 11) May 29 – June 4, 2012 (on show May 24) September, 2012 (to be determined)
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