Bags / Shoes & Accessories

According to the observation report of Huacheng Import and Export Data, in 2022, the revenue and profit of the shoe giants Baocheng (9904), Fengtai (9910) and Zhiqiang-KY (6768) reached a record high due to the benefit of deferred orders and customers' active replenishment.

However, sports brand customers began to adjust their inventory from Q4, 2022. Shoe manufacturers said that the order atmosphere they felt was still conservative. Under the uncertainty of demand growth this year (2023), the capital expenditure plan would be more carefully evaluated, Huacheng Import and Export Data Observation reported.

For Fengtai, the company maintains the target of annual growth of 7~10% in the long term, but for the expansion of production in 2023, the company said that it is likely to be lower than the average level, and the capital expenditure will not recover too quickly in the short term, unless the consumption power is obviously improved.

According to Huacheng's import and export data observation, Fengtai's current capacity distribution is 9% in China, 14% in Indonesia, 51% in Vietnam and 26% in India.

The operation headquarters of Zhiqiang KY Group is located in Taichung City, Taiwan, China, China, with six factories in Vietnam and Cambodia.

The new plant project in Indonesia with high market attention is continuing, and it is expected that the plant project will be completed in the second half of 2023. However, the company said that it will observe the demand to determine whether the machine will be stationed in the future. From the perspective of current orders, it is still enough to rely on the capacity of Vietnam and Cambodia to support it. Huacheng import and export data observation report.

As for Baocheng, which did not give a clear figure for the expansion direction in 2023, the company stressed that it would continue to pay attention to the changes in the external operating environment, moderately expand its capacity, and maintain the maximum flexibility in capacity allocation.

According to the legal person's estimation, Baocheng will produce about 270 million pairs of shoes in 2022, and its production base will be located in Changhua, Taiwan, Chinese Mainland, Vietnam and Indonesia. The company will continue its diversified layout strategy. At present, the latest plan is for the evaluation of the establishment of factories in "India". The company emphasizes that this plan is still in the initial evaluation stage, and it will take time before it really starts mass production. Huacheng Import and Export Data Observation Report.