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του Δρ. Λεωνίδου Πουλιόπουλου, Οικονομολόγου-Καθηγητή εφ. του ΤΕΙ Δυτ. Μακεδονίας
e-mail: pouliopoulos@kastoria.teikoz.gr
Δημοσιεύθηκε στo THE JOURNAL OF ECONOMIC SCIENCES: THEORY AND PRACTICE,
V.71, #1, 2014,
pp. 120-126
Pouliopoulos
Leonidas
PhD Lecturer, Technological Institute Western
Macedonia, Kozani, Greece
Pouliopoulos
Theofilos
MBA Ternopil
National Economic University, Ukraine
Received 10
January 2014; accepted 26 May 2014; published online 15 July 2014
Abstract
In this paper is
presented a brief report of the evolution of fur trade through the ages. We
mention the reasons that led to the creation of the legend for the fur makers
of Kastoria and Siatista. After the collapse of the Soviet Union and the emerge
of new markets for furs, we analyze the efforts western Macedonian furriers
made to implement new ways to dispose furs, similar with the auctions Denmark,
Finland, North America etc. In the conclusions part, we present our proposals
on how furriers can sell finished and semi-finished furs in the best and most
efficient way.
Keywords: Fur, system of codes, furrier,
Kastoria/Siatista, semi-finished product, final product JEL Classification
Codes: L67
The activity of crafts and fur industries
in Kastoria has a history of many centuries. There are historical reports since
the 16th century, although the cottage industry may be even older. The history
of fur trade in Europe is very old. The historian Tacitus states that the
Germans were influenced by the Romans and the noble Germans began using a wide
range of expensive furs [Larisch Paul, 1928, pp. 34-35]. From the 7th until the
13* century C.E the Hazards, the Scandinavian Vikings, Mongols and Russians
were supplying Constantinople with furs they bought from the Muslim traders
from Baghdad and they were exchanging them with spices, silk etc [Ballis
Theocharis, 1973, pp.10 -12]. In the Byzantine era, trade reached its highest
point and
Afterwards in the Ottoman
era, Constantinople (now Istanbul) remained the heart of fur trade, where furs
from Russia and other countries of northern Europe constantly were coming in
the city. In 18th and 19 century fur exhibitions starts to develop and Leipzig
becomes the largest exhibition center in central Europe where many western
Macedonians furriers from Kastoria and Siatista are there from the beginning
[Brass Emil, 1925, pp. 286-7]. After the Second World War the biggest
Exhibition Centre becomes Frankfurt. Apart from Frankfurt, significant fur
exhibition are being held in Milan, Italy and Kastoria, Greece. In the decades
of 1970 and 1980 the fur economy makes a major boom in both Europe and North America.
Traders and furriers of Kastoria and Siatista conquers the markets of Frankfurt
and New York mainly and also other countries such as Austria, France etc.
The furriers of Kastoria
and Siatista within two decades are becoming legendary for the following
reasons:
> First because they
were very skilled and fast working furriers. Mainly the so-called 'mechanics'
that were using
the sewing machine, they were gaining very high wages because
of their speed and accuracy in work.
> Were very
productive in all the stages of the manufacturing process and they wouldn't
accept to be paid by the time
but by the piece(piecework).
> Within a few years
became great businessmen although they started as simple workers without any
special educa- tion at an academic level.
> The technique of using the fur scraps (clipboard), as a specific
and innovative feature of manual processing, identi- fied the region of Kastoria
and Siatista.
>
In recent decades, the fur market in Frankfurt, failed to handle the bulk of
the fur trade and nowadays western
Macedonia is the only remaining fur
industrial center in the western world.
In the late 80's-early
90's the negative signs start to appear for the fur industry, mainly in Western
Europe. The International Fur Fair of Frankfurt with a history of 60 years
seizes to exist in 2006. On the other hand, the International Fur Fair of
Kastoria continues not only to grow but also to take place in modern and bigger
facilities. The Greek businesses find a way to markets of Eastern Europe after
the collapse of the Soviet Union. The Russian market is now the biggest
customer of fur production not only for the Greek products, but also for other
European [European fur clothing (ready fur coats) that comes to Greece and with
the appropriate processing covers the needs of the new markets] fur clothing.
Before the collapse of
the Soviet Union and the emerge of new markets in the Eastern Europe, fur
exports were mainly addressed to Germany and USA, but for many years now export
trade is focused to Russia. Russian consumers buy furs not only in Russia but
they are traveling to Greece and buy furs from Kastoria, Halkidiki Katerini,
Crete, Rhodes, etc. hi these places it has been created the so-called
"storefronts fur selling", mainly from furriers of Western Macedonia.
Over the past decades
with the opening of China's free market economy, the fur industry and economy
is growing rapidly in China. As a result, all the fur production centers in
Europe, USA and Canada have been diminished or disappeared while the production
center of Greece in Western Macedonia (Kastoria and Siatista) resists and
withstands the Chinese competition.
The Greek furriers
affected by Ihe allocation system of Scandinavian furriers have already decided
from the beginning of 1980's to establish an association[Grassroots company
that would operate with the form and statutes of a limited company]. This
official association would sell their goods, mostly the 'unfinished', the so
called 'bodies or pleter' [Furs shaped in scraps from rug,
The furriers convinced
the Greek state and through European programs established in Kastoria the Fur
Exhibition and Auction Center of Kastoria(from now EDIKA S.A), a venue that has
exhibition spaces and other storage area of 24.000 s.m. The responsible
governing body to operate this building is the cooperative union of Kastorian
furriers, which operates as a joint-stock (grassroots) company, called EDIKA
S.A.
The philosophy behind the
establishment of this joint venture company of Fur, as referred to the Article
3 para- graph 1 of the company's Statute, was among others the formation of a
common idea in the foreign buyer that will buy products from the original
trademark of Kastoria - Siatista and not from an individual producer [Statute
of EDIKA S.A. 2247/31 -5-1982].
The main dilemma of
company's administration was if the furs should be sold from the individual
furriers them- selves inside the exhibition or anonymously by employees of EDIKA
SA with the system of codes. Finally, an intermediate solution decided that
would allow producers to sell their products individually on branded kiosks
involving themselves in the management of their sales, along with the creation
of a smaller room, where they would be furs with the system of codes being sold
anonymously by employees of EDIKA.
Unfortunately, the system
of codes could not overcome the system of brands, with which furs were sold by
the producers themselves in the expedition center. But the system of branded
kiosks had too many negative aspects, so it was requested by the management of
EDIKA S.A to prepare a study to determine if there is an alternative mean of
disposal for the furs.
So, by using the results
of this study we mention the advantages - disadvantages of the system of
'codes' which are the followingfStudy for the operation of the Fur Exhibition
Center of Kastoria (2000), p. 16-17]:
Advantages:
1. Stop of the unfair
competition between the producers/furriers.
2. Common brand-respect
from customers.
3. Design depending on
market needs.
4. Reduction of sales
cost.
5. More free time for
the furriers since they will not sell the products themselves.
6. Minimizing the risk
for customer solicitation.
7. Reducing the time
spent by the buyer to choose the product he wants.
8. Enterprise Ability
for rational and economic space management in times of crisis.
9. Better and more
attractive presentation for all the exhibited products.
10. Convenient
environment for the client.
11. Configuring pricing
policy without internal competition.
12. Controlled policy of
funds.
13. Quality fur exhibits
because of the direct control.
14. Liquidity because of
the direct payment.
15. Best prices for
consumers because of the lower operating costs.
Disadvantages:
1. Risk creating
external competition between the furriers.
2. No option for
discount.
3. Danger for a small
collection of products in periods of high demand.
4. Danger of requirement
for high prices from the furriers because of the stock.
5. Stiffness in the
order intake.
6. Risk for non-equal
distribution of sales by the code exhibitor.
7. Low fur production
because of the not direct payment.
These are just some of
the elements from a study carried out many years before but never implied,
because nei- ther the exhibitors nor the executives of the EDIKA S.A really
wanted this. Today the system of brands is showing signs of decadence and there
is a danger of bankruptcy. From the one hand the uncontrolled solicitation from
the fur exhibitors in favor of their businesses and on the other hand the
inability of administration to support the whole system is threatening the
investment made thirty years ago to collapse.
We believe that the
system of 'codes' (the sale without the intervention of the furrier - producer)
would work per- fectly as it happens in the Scandinavian countries. Where there
is a possibility the furrier can be paid with a percentage of the exhibits,
which he will provide to the system of codes. Also, the administration and
operation of the company should be made by professional managers.
The auction houses of
Denmark, Finland and North America apart from having great amounts of capital
for finan- cing and paying the producers, have professional managers to operate
their businesses. But the truth is that the comparison of the two business
practices should be done with caution, since they are different products and
different conditions.
The product sold by fur
farmers through auctions is a raw material; the product sold by furriers in
Greece is a fi- nal product and is susceptible to changes according to fashion
and customer's desire. Of course the practice of disposal through auction or
codes would be easier with the semi-finished fur products (body from
fur-scraps), but this category of products is in decline since the raw material
of fur scraps is exported in China.
Conclusion
Sales of the
semi-finished fur products (boots and strings) in the production area could be
made either through auction or through the system of codes. Final fur products
could be sold in the production area through the EDIKA SA association with the
system of codes under stringent conditions. The fur has the element of
uniqueness and specificity as the customer himself and is very difficult to
adapt with the concept or semi-finished fur.
The retail and wholesale
of the final product (fur garment) have many in common, as the wholesale
customer has many similarities to the retail customer. The after sale service
has requirements that is very difficult to be fulfilled by the system of
auctions or the system of codes.
In conclusion, the
semi-finished products (body) could be auctioned or sold through codes system,
but the fur garment (final product) because of the peculiarities mentioned is
almost impossible to be auctioned and very difficult to be sold through codes
system, if not provided, payments in advance to the producers before the sale
and with the delivery to the showrooms of the company.
Bibliography
[1] Ballis T., Economic
and Organizational Investigation of Fur Enterprise', PhD thesis, Athens, 1973
(In Greek)
[2] Brass E., Aus dem
Reiche der Pelze Verlag, "Neue Pelzwaren-Zeitung und Kurschner-Zeitung', Berlin 1925.
(In German)
[3] Larisch P., Die Kurschner und ihre Zeichen, (Beitrage zur
Geschichte der Kiirschnerei),
Selbstverlag, Berlin,
1928. (In German)
[4] Pouliopoulos L., 'History of fur and the Role of
Kastoria', 'Kastoriani Estia', Kastoria, 1994. (In Greek)
[5] Pouliopoulos L., Das
Pelzgewerbe in Kastoria, Verlag Carl Bold, Berlin, 1978 (In German)
[6] Statute
of EDIKA
S.A. GG. 2247 / 05.31.1982. (In Greek)
[7] Study on the
operation of the permanent Fur Exhibition Center of Kastoria, the system of
codes, in January 2000
(In Greek)
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