Highlights

In early 2025, amidst the usual industry lull, Taiwanese shoe manufacturers defied expectations with rising orders and optimism for a robust second quarter. As global sporting events like the Club Cup and World Cup kick-off, brands such as Adidas and ASICS are aggressively restocking inventories. Companies like Zhi Qiang-KY, Lai Yi-KY, and Yu Qi-KY are benefiting from this demand surge, forecasting record-breaking revenue for the second quarter.

Sentiment Analysis

• The overall sentiment of the article is positive.
• A dominant optimistic outlook is conveyed with anticipation of high revenue peaks for manufacturers.
• Anticipation of growth and successful inventory restocking is prevalent among international brands and local manufacturers.
• Global events and strategic restocking plans hint at sustained demand and profitability.

Article Text

The first quarter of 2025, typically a slower period for the textile and footwear industries, has seen unanticipated performance results from Taiwanese shoe manufacturers. With increasing orders, the industry braces for a second-quarter peak. This surge aligns with the commencement of major global football events such as the Club Cup and the World Cup, where Pai Ho and other manufacturers began supplying goods back in July and August.

Zhi Qiang-KY is forecasted to experience three spikes in annual revenue, benefiting from a strong market for outdoor and sports brands. Companies like Adidas, ASICS, and On are particularly proactive in restocking their products, propelling orders for Lai Yi-KY and Yu Qi-KY, thereby setting the stage for a potential historical high in second-quarter revenue.

International brands like Adidas concluded 2024 with a significant rebound, performing above expectations in the fourth quarter with a fourfold increase in annual operating profit. The robust demand for high-margin and high-priced products gives Taiwanese manufacturers like Zhi Qiang-KY and Lai Yi-KY a significant boost, predicted to manifest in double-digit revenue growth, especially as brands handpick production starting in the second quarter.

On is rapidly expanding in the running shoe market, observing a 31% increase in revenue in the first three quarters and an anticipated annual revenue growth of 35%. With Yu Qi-KY as a key Offshoring partner, not just for running shoes but also for outdoor hiking footwear, this presents a unique opportunity for elevated second-quarter performance.

The textile sector, particularly companies like Ruentex and Makalu, showcases robust spring and summer shipping momentum in 2025, marked by middle to high-digit annual order growth prompted by sports brand demands. Taiwanese suppliers are strategically positioned for record-breaking revenue and profit due to brand restocking, order migration, and advantageous ESG supply chain positions.

Despite optimism, businesses should remain vigilant of evolving consumer market changes, U.S.-China trade conditions, tariff policies, and geopolitical risks associated to regional concentration of manufacturing capacities.

Key Insights Table