Asia Footwear Giants Cut Shipment Drop to Under 4 Percent in September

Shipment headwinds continue for Asia’s largest sneaker makers as trends stabilize from summer lows.

A Shifting Backdrop for Global Footwear

The global footwear industry in 2025 is a landscape defined by rapid change and constant adaptation. Despite macroeconomic headwinds and the lingering effects of COVID-era disruptions, consumers continue to demand newer, more sustainable, and comfortable footwear options, driving both opportunities and volatility for manufacturers.

China and Southeast Asia remain undisputed epicenters for mass production, benefiting from extensive industrial capacity and competitive labor advantages. However, even the region’s largest producers Feng Tay Enterprises and Yue Yuen Industrial have faced slowing growth, factory recalibration, and margin pressures.

Feng Tay Enterprises (Finding the Bottom of the Cycle)

Feng Tay Enterprises, a crucial supplier of Nike and one of the region’s largest athletic shoe manufacturers, reported a 0.9% year-over-year decrease in September 2025 manufacturing revenue (NT$6.72 billion). This reduction, while still negative, marks a notable improvement versus August’s 3.7% drop and the much steeper 8.8% plunge in July. The data reflects an encouraging moderation that hints at stabilization after a summer marked by steep declines.

Historical context shows September 2024 actually saw a 1.3% shipment value gain over August–September 2023, offering a tough comparison as post-pandemic consumer demand briefly surged. By contrast, in the first nine months of 2025, Feng Tay’s shipment revenues are down 4.3% to NT$62.8 billion, as global orders normalized and factory output returned to pre-COVID levels.

The results at Feng Tay exemplify how the world’s biggest footwear factories must continually adjust to shifting brand strategies, early or delayed shipments, and volatile consumer sentiment. As brands like Nike push for more sustainable, tech-driven, and customized shoes, manufacturers must balance efficiency with innovation.

Yue Yuen Manufacturing  (Sequential Improvement But Ongoing Pressures)

Yue Yuen Industrial (Holdings) Limited remains a linchpin in global sneaker supply, producing for leading U.S. and European brands. The company reported September shipment revenues dropped 3.8% year-over-year an improvement from August’s sharp 9.7% decline. Notably, this compares to September 2024’s dramatic 26.7% year-over-year increase, a period that amplified the impact of tough year-on-year comparisons in 2025.

Even with recent declines, Yue Yuen’s manufacturing business is up 2.3% for the 2025 year-to-date period through September, highlighting the resilience and flexibility embedded in large-scale Asian manufacturing.

Including its Pou Sheng retail business in China, Yue Yuen’s total consolidated operating revenue in August 2025 was down 4.1% year-over-year to $633 million. The Trump-era tariffs and continued retail weakness further pressured results, while Pou Sheng revenues declined by 4.8% in September after steeper drops in prior summer months.

Cumulatively, Yue Yuen’s net consolidated operating revenue for the first nine months of 2025 slipped 1.0% to $6.02 billion an indicator that while the recovery is uneven, the business remains vast and globally diversified.

Industry Context  (Innovation, Sustainability, and Future Outlook)

As segmentation in the market sharpens, companies like Feng Tay and Yue Yuen are experimenting with new production technologies to boost flexibility and efficiency. The rise of automation, 3D printing, and real-time data analytics is reshaping traditional labor models, helping large manufacturers to weather cycles and meet the demand for both mass-market and highly personalized shoes.

This transformation is also part of a larger shift toward sustainable sourcing a factor critical to retaining contracts with major global brands eager to meet consumer demand for greener products.

Industry data shows global consumer spending on footwear is projected to climb by 2.0% in 2025, with Asia–Pacific expected to lead the growth thanks to rising urbanization and fashion-conscious middle-class shoppers. However, with women’s footwear, athleisure, and sustainability gaining ground, manufacturers should expect continued volatility in order flows and pricing, especially as U.S. and European brands move to reposition for a slower but evolving retail market.

Looking Ahead,  Is a Turnaround Coming?

The moderation of shipment declines in September signals a potentially stabilizing environment for Asia’s largest footwear manufacturers after several quarters of turbulence. Both Feng Tay and Yue Yuen remain vital cogs for the world’s biggest sports and lifestyle brands. Their ability to adapt leveraging new technologies, enhancing sustainability practices, and serving diverse markets will determine the pace and magnitude of their eventual rebound.

With the holiday season and new product launches approaching, Q4 will be a critical test for demand normalization and the ability of these giants to defend and grow margins amid a complex, competitive, and ever-changing industry.