Sports Shoes

China is the world's pre-eminent production center for sports shoes — manufacturing an astonishing 80% of global supply in 2003.
To help you source more efficiently from such an enormous supply market, this report provides in-depth profiles of 15 key producers from China's main supply centers.

Use this profile information on capabilities, prices, product developments and more to pre-qualify new manufacturers and to benchmark your current suppliers.

You'll also get a comprehensive industry overview, covering design innovations, competitive strategies and other factors that will impact your upcoming sourcing decisions.

What you'll get

Practical advice to help shortlist leading manufacturers who supply to globally recognized brands such as Reebok, Nike, Riddell, Wilson and Wal-Mart

A better understanding of how new uses for phylon, nanofiber, nylon mesh and other special materials are making China-produced designs lighter, stronger and more comfortable

Background information on which suppliers have strong QC departments and which use the latest automated methods to test flexibility, abrasion, weather resistance, discoloration and other properties

Advance knowledge of how an industry shakeout, brought on by oversupply, will make it difficult for many small companies to compete effectively over the next two years

How you'll benefit

Save time and money on your next sourcing trip by identifying in advance suppliers relevant to your needs

Discover which producers are using vulcanization, injection and cementing production techniques, and what these mean for the prices you are offered

Find out which manufacturers are best complying with environmental concerns in key export markets such as Europe

Get information on suppliers' company backgrounds and export capabilities, and full supplier contact details

Executive summary

China produces 80 percent of the world's sports shoes. With 1,500 exporters in the line, it offers large, midsize and small suppliers that manufacture a wide range of models. This report focuses on the main lines of casual sports shoes, cross-trainers, running shoes and tennis, basketball and football models, although featured companies also produce a variety of other types, including skateboarding, hiking, dancing, bowling, aerobics and roller shoes.
China's exports of sports shoes reached an estimated US$625 million in value in 2003, up from US$560 million a year earlier. Suppliers ship products to more than 100 countries.

This 45-page report examines the R&D, design, production and pricing issues driving China's sports shoe export industry and the challenges facing makers in the year ahead. In addition to providing an overview of the industry, we qualify 15 of China's leading export manufacturers of sports shoes through in-depth analysis of each company's capabilities. These featured suppliers, a mix of large and small makers, come from the country's main sports shoe supply centers of Guangdong, Fujian, Zhejiang, Shanghai and Shandong.

Although China's sports shoe prices are virtually unbeatable, they are increasing slightly due to the rising cost of raw materials. The cost of rubber, the dominant material for outsoles, has shot up over the past year.

Most suppliers conduct OEM work, with customer lists of makers featured in this report including such wellknown companies as Nike, Riddell, Wal-Mart, Wilson, Gap, K-Swiss and L.L.Bean. But while OEM orders constitute the core business, more China suppliers are investing in R&D and design technology in order to launch their own brands.

Companies are also expanding their capacity, with many constructing additional factories to meet demand. While there are many newcomers to the line, most sports shoe makers in China have at least 10 years of experience. Some are approaching 20 years in the line. The big exporters sell US$40 million worth of sports shoes to foreign buyers each year.

Industry overview

China is home to more than 3,000 sports shoe suppliers, half of which export, and accounts for 80 percent of world output in the line. Already the top producer, China is attracting more manufacturers from other countries and territories because of its cheap labor and export-oriented industrial centers with well-developed infrastructures. Most Taiwan sports shoe makers have relocated factories to mainland China, and many suppliers from Hong Kong and other areas are also investing in plants there.

In 2003, China's exports of sports shoes reached an estimated US$625 million, up from US$560 million a year earlier. Local suppliers ship products to more than 100 countries. North America accounts for 40 percent of exports, Europe 30 percent and Asia 20 percent. Countries in the Middle East and Africa are also significant markets for some makers.

China offers large, midsize and small suppliers, and produces a wide range of sports shoes. The main lines are casual sports shoes, cross-trainers, running shoes and tennis, basketball and football models, although makers also offer skateboarding, hiking, dancing, bowling, aerobics and roller shoes, as well as other types.

The country's main production hubs are Fujian, Guangdong, Zhejiang, Shanghai and Shandong. Fujian province is the biggest supply center, with more than 2,000 makers.

Most suppliers conduct OEM work. The client lists of China sports shoe makers include such well-known companies as Nike, Riddell, Wal-Mart, Wilson, Gap, K-Swiss and L.L.Bean. While OEM orders constitute the export industry's core business, more China makers are investing in R&D and design technology in order to promote their own brands.

When quotas are lifted in January 2005, demand for China's low-priced products will surge, especially in European markets. Many buyers who have been sourcing sports shoes in nonquota countries will switch orders to China.

Another reason for increased demand is the improved quality of China-made sports shoes over recent years. Low-end models continue to be a huge line, but local makers are also emphasizing value-added midrange and high-end designs. New releases boast environment-friendly features, enhanced comfort and greater durability. Design teams are also devoting more time to creating stylish models that suit the latest fashion trends in key markets such as Europe.

Competition in China's sports shoes export industry is keen. But this does not mean the trend of falling prices over recent years will continue in 2004. In fact, suppliers are predicting price increases of 2 percent to 10 percent in the year ahead. They feel increases are necessary in order to maintain reasonable profit margins in the face of rising material costs and the government's decision to reduce the tax reimbursement granted to exporters.

Samples of supplier profile

Best Dream Industrial Co. Ltd
Best Dream Industrial Co. Ltd, majority-owned by Ocean Footwear (H.K.), mainly produces in-line skates, which make up 80 percent of output. Casual sports shoes, skateboarding shoes and roller models account for 20 percent. Annual sales of all products are US$12 million.

The company currently operates two factories in China and has a third on the way. With headquarters, its sales office and the two existing factories located at a complex in Dongguan, Guangdong province, the company plans to open a new plant in Jiangsu province 98 kilometers from Shanghai by the end of 2004.

The company's financial transactions and shipping are conducted mainly via Hong Kong. Best Dream exports 70 percent of its sports shoes, mainly to the United States, Canada, Europe, South Korea and Japan. Major customers include Freddy of Italy and SP of Germany. The rest of output is marketed in China under the in-house Baodun brand.

Products made
Best Dream's product range includes in-line skates and skateboard shoes as well as casual sports shoes and roller models. But the company did not start producing midrange sports shoes for adults and children until three years ago. These come in casual styles designed for walking and hiking. FOB prices range from US$10 to US$13. In the January-October 2003 period, output of such models exceeded 100,000 pairs.

The company has an 80-person R&D and design team. Designers work closely with buyers to customize orders. The majority of Best Dream's production involves OEM orders and buyers provide most of the designs. In-house designs account for 20 percent of production. Best Dream has the capacity to launch up to 100 new models every quarter.

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