Taiwanese Businessmen Are Moving The Production Base Of Sports Shoes And Abandoning The Mainland To India.

According to a report by the Nikkei Asia review, China has been influenced by factors such as rising labor costs, p Pacific Partnership (TPP) and trade tensions with the United States.

The attractiveness of the company's production base is weakening.

Taiwan's main sports shoes outsourcing manufacturer Fengtai group and Baocheng group continue to reduce production share in mainland China.

The Nikkei Asia commentaries said that ten years ago, the company had no longer increased its capacity in mainland China, and only 10% of its footwear products were produced in mainland China, mainly for Nike and Adidas.

Fengtai has increased in Southeast countries, and India has become an increasingly important production base.

Fengtai has opened two factories in India, and will continue to expand its production in India and plan to increase production efficiency in factories in Vietnam and Indonesia.

In 2017, Fengtai was in Vietnam.

The output accounts for 52%, 24% and 13% of the 124 million pairs, respectively. China accounts for 11%, and the proportion of China in 2018 dropped to 10%.

Feng Tai's footwear manufacturer, Baocheng, produced nearly 325 million pairs of brands last year, including Nike (Nike), Adidas (Adidas), Reebok (Reebok), Athers (Asics), Andemar (Under Armour), new New (Balance Balance) and Puma (Puma).

Its footwear products in mainland China dropped from 29% in 2014 to 17% last year.

In the first half of 2018, Baocheng produced 159 million pairs of footwear products, of which only 15% were processed in mainland China.

Production accounts for 46%.

However, both companies have indicated that they will continue to insist on production in China because the domestic consumer market is too large.