Hong Kong giants are most grateful to sneaker booming. At the end of 2017 Yue Yuen’s revenues reached 9,12 billion dollars, thus increasing by 7,6% compared to 2016, though profits decreased by 2,9%, thus amounting to 519,2 million dollars in total. Throughout 2017 earnings coming from footwear manufacturing went up by 0,9%, while production volumes increased up to 324,6 million pairs of shoes. Mostly thanks to sneakers, which are now worth nearly 50% of production (actually 48,5%), while growing by 2,3%. In contrast, sales of other models have dropped by 3,1% for casual and outdoor shoes, and by 16% for sporty sandals. Lu Chin Chu, president of the group, is quite happy. He announced, “We shall invest in technology, process new engineering and additional improvements, aiming to enhance our skills and expertise and keep our expansion sustainable and steady”. Yue Yuen, together with their subsidiary, Pou Sheng, manufacture for Adidas, Nike, Reebok, Converse, Asics, Columbia, Rockport and Sperry Top-Sider. Sneakers have been also driving the business of Stella International, another giant headquartered in Hong Kong: at the very end of 2017, their revenues amounted to 1,57 billion dollars, thus increasing by 1,7% compared to the year before. The company announced that “sporty fashion shoes” have been primarily driving their business throughout 2017, as deliveries went up by 7%, thus reaching 56,6 million pairs of shoes in total. Stella International also expect demand for fashion articles to grow in the United States and Europe, two of their most important trade markets: for the records, fashion items, which are their biggest segment, are worth 38,6% of the overall turnover. Stella Group manufacture for Clarks, Deckers, Timberland, Cole Haan, Kenneth Cole, Tory Burch, Alexander Wang, Givenchy, Marc Jacobs and Prada. They also run three retail sale brands, namely Stella Luna, What For and JKJY by Stella.
Chinese Yue Yuen and Stella say many thanks to sneakers, as “sporty fashion” shoes drive the business
