Following their footprints to China

From our archives, Compass Magazine, July 1999.

The Greater Taichung Area is one of the leading world centers for shoe-making technology. In the years since 1980, the area has become the world’s main supplier of footwear. Taiwan exported 0.8 billion pairs of shoes worth US$3.6 billion in 1986, the highest total in the history of the Taiwan industry, and earned the island the label of a “shoe-making kingdom.”
However, for the last 10 years, the quality and value of Taiwan shoe exports has declined. According to the Taiwan Footwear Manufacturer’s Association, Taiwan exported 62.17 million pairs of shoes, worth US$410.19 million in 1997. Rubber and plastic shoes remain the biggest items, accounting for 62.9 percent of total exports, followed by textile shoes at 20 percent. Although over 90 percent of Taiwan shoe-making exporters have moved their assembly lines offshore, owing to high labor costs, they maintain their R&D and management operations in the Greater Taichung Area.
Typically, they receive orders in Taiwan and manufacture them in China. About 80 percent of Taichung shoe-making exporters have concentrated their factories in China. There are, of course, other sites for production, including the Philippines, Thailand, Vietnam and various other Southeast Asian countries.
At the same time, many world-renowned brand name shoes, such as Nike, Reebok, Brook, Converse, Fila, Asics, Sketcher, Adidas, Payless and American Eagle, are designed by Taiwan enterprises. These foreign leaders take advantage of Taiwan’s shoe-design technicians, convenient transportation and excellent molding techniques. In fact, the counties of Taichung and Changhua have become key locations for shoe design.
In 1987 to 1988, when Taiwan shoe exports were at their peak, there were more than 2,000 shoe-making factories in the Greater Taichung Area exporting about 500 million pairs of shoes a year and employing 70,000 to 80,000 workers. Today, the quantity and value of shoe exports have dropped dramatically and the number of employees has fallen. Currently, some of the leading companies in the industry import shoes for sale in the Taichung market.
In a related area, about 60 companies in Taiwan have turned their production from traditional roller skates to in-line skates. These products have a yearly export value of US$290 million. The companies cooperate through strategic alliances with renowned US manufacturers of in-line skates, including Roller Blade, K2 and Bauer.
In terms of export performance, the top two shoe-making companies in Taiwan are all located in the Greater Taichung Area. They are Pou Chen Corporation, with exports of US$261.5 million and Bar Corp., with exports of US $185.1 million.
The United States remains the major market for Taiwan-made shoes, accounting for about 29 percent of the exports, followed by Japan, Hong Kong, the United Arab Emirates and Singapore.
The Taiwan Footwear Research Institute (TFRI) is also located in Taichung. The TFRI is an independent non-profit organization engaged in research and technical service in the shoe-making industry.
The institute cooperates with many professional organizations in R&D, including SATRA, BLC and CLARKS in England. TNO in Holland, ARS and the MAIN GROUP in Italy, INESCOP in Spain, ORISOL in Israel, J&V in the United States, KIFT in Korea and ESPRESNSA in Japan.