Bags / Shoes & Accessories

Recently, according to media reports, footwear giant Baocheng invested heavily in Indonesia's production expansion this year.

Baocheng has increased the capital of its subsidiary PT. Hardases abadi Indonesia by USD 65 million. It plans to make mid-to-long-term shoe production capacity layout in Central Java, Indonesia. It is currently in the preliminary preparation stage and plans to develop by stages. The first phase is scheduled to be put into production after 2023. To increase the momentum of future operational growth, the Indonesian factory will remain the largest shoe-making base of the Group.

Baocheng revealed that the group has established factories in Serang, Sukabumi and Cianjur in West Java, Indonesia for a long time, because it is optimistic about the relatively sufficient labor force in Indonesia and the effect of industrial settlement. Therefore, the Group continued to expand its production lines in Indonesia and cooperate with the overall operation plan.

In the first half of the year, Baocheng shipped more than 144 million pairs, an annual increase of 5.6%, and the average selling price was US$20.16, which was higher than US$18.37 in the same period last year.

In the first half of the year, the proportion of each shoe-making area in Baocheng was 10% in mainland China, 37% in Vietnam, 47% in Indonesia, and 6% in other areas (Cambodia, Bangladesh and Myanmar). Among them, the proportion of operations in Indonesia in the first half of the year increased to 47%, making it the largest shoe-making base of the group for the first time.

Baocheng said that in the future, after the completion of the expansion project in Central Java, Indonesia, the proportion of shoe-making in its Indonesian factory will increase. At present, the main customers of the Indonesian factory include many brand shoe manufacturers such as Nike and adidas.

Baocheng said that the group will start a new round of production expansion plan, gradually increase the production capacity of the existing factory area, and actively improve the operation efficiency and production flexibility, so as to prepare for the production capacity growth in the next few years.

In terms of footwear manufacturing business, Baocheng said that the Group will continue to adopt a global diversified layout, flexibly allocate production capacity in various regions to balance order demand, production schedule and labor supply, and continue to implement a number of digital transformation programs to cope with the rapidly changing environment. Market environment.

In terms of sports goods retailing and brand agency business, Baocheng said that in the first half of the year, Baosheng International had a total of 7,961 physical stores, including 4,455 directly-operated stores and 3,506 franchise stores, of which 753 were large stores with an area of more than 300 square meters. stores, accounting for 17% of the total number of directly-operated stores, and will continue to develop large-scale stores in the future.