The China Economic News Service reported that several major Taiwan-based footwear manufacturers are ramping up production in order to meet demand, which is expected to spike in conjunction with the 2008 Olympic Games in Beijing. Pou Chen Corp. has been cooperating with several brands including Converse, Hush Puppies, Asics, and Wolverine World Wide in their efforts to become established in the Chinese market before the Games begin. Feng Tay Enterprise Co. is increasing both its footwear and apparel production.
Yue Yuen and Pou Chen are linked to each other, with Yue Yuen acting as the Chinese subsidiary of the Taiwanese footwear manufacturer. Pou Chen is investing roughly $15-$20 million in an effort to increase the number of its Chinese market outlets by 80% to a total of 600 by the end of 2005 and over 1,000 by 2008. As a result, in the first year of this expansion Pou Chen is expecting to more than double its revenue to $150 million by the end of 2005.
Feng Tay, the company that supplies roughly one-sixth of Nikes shoes, is also ramping up its manufacturing in Vietnam, Indonesia and China, increasing the number of production lines from 101 to 146 by the end of 2006. The company expects its footwear production to increase from 42 million pairs to over 50 million pairs in the next two years.
