The Chinese manufacturers behind U.S. shoe brands

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As part of a series on Communist China's 70th anniversary, Marketplace's China correspondent Jennifer Pak and Shanghai bureau news assistant, Charles Zhang, spoke to people in the country's shoe industry ' the world's biggest ' about their achievements and challenges over the last few decades. You can read more stories from the China 70 series here.

Communist China had a lot to celebrate on Oct. 1, its 70th birthday. The country has gone from one of the poorest in the world to having the second-largest economy.

President Donald Trump has suggested that China achieved this by engaging in unfair trade practices and vowed last year that he would not allow America to be 'ripped off' by China any longer.

Trump has imposed tariffs on billions of dollars of Chinese goods, including certain types of shoes.

'Marketplace' spoke to shoe manufacturers in the southern Chinese city of Dongguan. Their answers have been edited for grammar, style and brevity.

Factory boss Jones Hsueh said young people in his native Taiwan lose interest in factory work. The same thing is now happening in mainland. (Shanghai 808 Studio)

Jones Hsueh

Title: Co-founder of Kaihong Shoe factory

Years in the shoe manufacturing industry: 30

Percentage of the business to the U.S. market: 85%

U.S. shoe brands the factory manufactures for: Steve Madden, Naturalizer, Dr. Scholl's, Sam Edelman, J.C. Penney

Employees: 2,800

Factory boss Wen Qinhua says he has charged his clients the same since , even though labor and material costs have shot up. (Shanghai 808 Studio)

Wen Qinhua

Title: Founder of Longho Shoe factory

Years in the shoe manufacturing industry: 20

Percentage of the business to the U.S. market: 60%

U.S. shoe brands the factory manufactures for: Hawx, Justin Boots

Employees: 200

Tony Tung (left) and his son Kevin run production bases in Southeast Asia because of rising labor costs in mainland China and the U.S. tariffs on shoe products. (Shanghai 808 Studio)

Tong Tung

Title: Founder of Changjian Shoe factory

Years in the shoe manufacturing industry: 30-plus

Percentage of the business to the U.S. market: 100%

U.S. shoe brands the factory manufactures for: Kenneth Cole, Caterpillar footwear, Hush Puppies

Employees: 600 workers in mainland China

Kevin Tung

Title: Assists his father, Tony, at the Changjian Shoe factory and helps Chinese clients find production facilities in Southeast Asia

Years in the shoe manufacturing industry: nine

One pair of shoes will pass through the hands of upwards of 100 workers at the Kaihong Shoe factory in Dongguan. (Shanghai 808 Studio)

How did you get your start in the industry?

Hsueh: I have a civil engineering degree from Taiwan. My uncle had been in the shoe industry for more than a decade and he wanted to start his trading company. I joined him and after about four years I didn't want to leave the industry. I found the job challenging and I never felt bored. In , I opened my own shoe factory in mainland China's central Henan province. We also keep a smaller plant in the southern city of Dongguan.

Wen: My university major in mainland China was in Chinese language and literature. I could have worked as a teacher, but back then the salary in southwestern China's Chongqing city, where I'm from, was only 300 yuan ($42) per month. A regular worker in southern Guangdong province made three times more. So I went to Guangdong province after I graduated in . The job hunt wasn't easy, but eventually I took a job as a management trainee at a Taiwanese shoe factory in Shenzhen city.

Tung: After I left the army in Taiwan, I was making shoe components, like soles. In , I established my own shoe factory in Taiwan with 100 workers and we produced for small American brands.

Shoe manufacturing shifted from Europe and the U.S., to Japan and Brazil, then to South Korea and Taiwan. How did it move to mainland China?

Hsueh: In the early s, shoe factories in Taiwan started to have labor problems. Young workers had less interest in factory jobs and wages increased. Meanwhile, mainland China started to open its economy and it became Taiwan's biggest competitor. One company moved its production to mainland China, at first, and more companies followed.

Tung: In , the average workers' salary in Taiwan was about $800 per month. The profit margin was very low, but it was hard for me to leave and find a new industry. Some friends suggested that I visit mainland China's Dongguan city, which only had a couple of shoe factories at that point. I arrived in Dongguan in . All I said was that I planned to open a factory. So many workers scrambled to get in that they nearly broke the door down. I started my Dongguan factory in , and the industry at the time was paying workers 200 yuan ($28) per month. Our monthly salary started slightly higher, at 300 yuan ($42).

Factory boss Jones Hsueh (left) said he has done a lot of upgrading in his factory to comply with China's stricter environmental regulations. (Shanghai 808 Studio)

Why are shoe factories shifting out of mainland China now?

Hsueh: In , China had a new labor law, which increased the cost to hire workers. At the same time, there was a labor shortage. Due to China's one-child policy [from to ], a lot of Chinese parents wanted their children to get more education. Young people with a bachelor's degree didn't want to work in factories. That's why the shoemaking industry started to shift to Southeast Asia, or to other cheaper areas within mainland China, which is what I did. In , I opened a shoe factory with a few friends in central Henan province, where the costs are still lower than along the Chinese east coast. We only maintain a small operation in expensive Dongguan. That is why we can survive.  

Tung: After the financial crisis in , the orders started to dry up. Some shoe manufacturers moved their businesses to other countries, like Indonesia, Bangladesh, Myanmar, Vietnam, Cambodia or India. I already have a shoe production line in Vietnam. I started it in at the request of my clients to diversify my production bases, but that operation remains small.

What are the biggest challenges to run a shoe factory?

Hsueh: To make a pair of shoes, start to finish, will require between 40 and 100-plus workers. It is hard to manage people and we must be very careful to prevent mistakes at every stage of production. Another big challenge we face is the requirement to abide by China's environmental policies. We cannot avoid using glue and chemicals in the shoe-making process, but the government has strict regulations on these now. We stayed in our previous factory for more than six years, but the building didn't meet some of the government's environmental protection standards, so we had to move to our current location.

Wen: Labor costs have increased rapidly. In , the average monthly salary was 3,500 yuan ($490), but now it has increased by 43% to more than 5,000 yuan ($699). Plus, we have too much competition. It is a buyers' market. I is hard for us to increase the price. In fact, the prices we charge haven't changed since because we know the end consumers, like in the U.S., won't pay more. There is also increased government checks on factories to make sure they are following environmental protection standards. Environmental protection is a good thing, but I wish the government would enforce the rules more gradually.

Tung: The biggest challenge for us is that we manufacture for other brands, so we can be easily replaced by manufacturers from other countries. I am also under a lot of pressure to keep prices low, so that we keep our factories and workers busy. Sometimes, the profit margins are lower than 5%.

Kevin Tung: The orders are getting smaller. Our customers are becoming very conservative. They don't want to stock large quantities of shoes. In the past, clients would buy 10,000 pairs in one style. Now, they might still order 10,000 pairs, but they split the order into five styles because they are not sure which ones will sell. I think this is the result of fast fashion.

Changjian Shoe factory used to take up this entire U-shaped complex, but it now shares the space with nine other factories as operations shift to cheaper places in Southeast Asia. (Shanghai 808 Studio)

What are your fixed costs and profit margins?

Hsueh: In terms of the cost to manufacture a pair of shoes, workers salaries, social insurance contributions, plus room and board account for 15% to 20%; raw materials account for 45% to 70%. For big orders, the gross profit margin is 3% to 5%. For small orders, the gross profit margin is 8% to 12%.

Wen: In , workers' salaries accounted for about 15% of the cost to manufacture a pair of shoes and now it is more than 30%. For work boots, labor accounts for 20% to 25% of the cost. The profit margin for work boots is about 6%, it was between 8% and 10%, in the past.

President Donald Trump has imposed tariffs on some types of shoes and has threatened to impose more duties on remaining footwear in December. What are your long term plans?

Hsueh: We have been upgrading our operations to serve higher-end clients to get better profit margins. We are also trying to shift some of our business towards the European market and automate production. Lastly, we've designed our own brand of lightweight sneakers, called Fessura.

Wen: I am trying to explore European and Japanese markets as well as the possibility of automating my shoe production.

Tung: Trade talks go up and down. Nobody can predict the results. No matter what, we will use mainland China as our base for research and development.

A work boot by Longho Shoe factory for the U.S. market used to fetch company boss Wen Qinhua 8% to 10%. But now, he says, he is lucky if he makes 6% profit. (Shanghai 808 Studio)

As China marks its 70th birthday, do you feel like a winner?

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Hsueh: I don't think there is a winner or a loser in trade, everyone just takes what they need. China has sufficient labor, so it can provide cheap products for the consumers in the world. At the supply end, China is the winner, but at the demand end, the U.S. is the winner. It is mutually beneficial. As for me, personally, I'm still in the industry, so it is too early to say whether I am a winner or a loser.

Wen: There have been so many ups and downs. It's not easy to run a business. I am an entrepreneur, and I am not a winner, yet, because I haven't realized my dreams to become the best work boot factory in the world.

Tung: I don't think I am a winner. I moved some production to Southeast Asia, but the cost over there is rising as well. So, I am not a winner. China can't leave the U.S., the U.S. can't leave China. They are like conjoined twins, you can't separate the two.

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China stands out as the hub of the global footwear industry, known for its dynamic and innovative approach to shoe manufacturing. With shifting times and generations, individuals' desires and interests have also transformed. Shoes manufacturers in China have prioritized these changing needs, constantly adapting to create a variety of desirable and stylish shoes. By creating additional categories, they ensure they meet the preferences of all types of customers.

This article will introduce you to the top 10 China shoes suppliers manufacturers that have gained international fame. These companies have become powerhouses in the industry, known for their diverse categories of shoes that combine quality, comfort, style, and unique design.

PapaChina

Established in , PapaChina has been a prominent shoe supplier in China that seamlessly connects buyers, wholesalers, amp; retail suppliers all over the world. With a large variety in shoe collection, PapaChina offers a diverse range of shoe designs, sizes, styles and colors. It includes casual shoes, formal shoes, sports shoes, and more.

As a leading shoes manufacturer in China for private-label products, PapaChina helps startups, SMEs, and established businesses procure quality products at affordable prices. In addition to shoes, the company also provides other customized promo items such as office supplies, tech items, executive gift sets, and more.

Alibaba

Alibaba is one of the leading China shoes suppliers and manufacturers, empowering businesses to have the latest trends in fashion accessories and footwear. The company has a huge collection of customized designs super-quality and robust printing options for products.

As a renowned shoes supplier in China, Alibaba has an inventory of over 200 million products and 5,900 product categories. It helps businesses find niche products that fit their industry needs. 

DHgate

DHgate ranks 3rd in our list of best shoes manufacturer in China. The company offers a wide collection of customized shoes and other wholesale products to global brands. From casual shoes and boots to running shoes and sandals, one can find their ideal marketing product for corporate gatherings, seminars, tradeshows, and sports events.

DHgate has unique product designers and innovative creators who manufacture wholesale shoes in China. It also offers unique branding options to customize products with brand logos and inspiring taglines.

Made-in-China

Made-in-China is one of the reliable sneaker manufacturers in China that helps businesses source wholesale custom-made products for their brand marketing. Unlike other B2B wholesale websites, Made-in-China offers an intuitive UI that showcases an extensive range of products and makes the trading experience easy and quick.

It is a popular china shoes factory with innovative suppliers and manufacturers that support a 360-degree trading experience, from product sourcing, design, and packaging to warehouse and shipment.

Wholesale 7

Looking for trusted Chinese shoe manufacturers? Wholesale 7 is a popular wholesale supplier of industry and commercial products that aids businesses in their marketing efforts. The platform facilitates buyers and retailers with multiple perks such as no minimum fees, no reason for returns and bulk discount options.

The platform facilitates global businesses in finding and procuring wholesale shoes in China. It offers premium quality shoes for different occasions. If you own a small business and want to procure customized shoes for brand marketing, then Wholesale 7 is one of the best custom shoe manufacturers in China.  

HYD Shoes

HYD Shoes is a well-known China shoes suppliers manufacturers that focus on clients' preferences, and customer needs to cater to the unique needs of each one. This company produces and supplies personalized shoes to businesses of all sizes, from wholesalers and resellers to other businesses. HYD Shoes is a famous shoe manufacturers in Guangzhou, China, with a team of creative and talented designers to supply a vast collection of unique and designed shoes according to brand preferences.

If procuring a variety of promotional products within your limited budget is challenging, HYD Shoes is the best solution. This is one of the top shoe makers in China that offers great variety, easy customization, and affordable pricing.

China Shoes Manufacturer

As one of the best Chinese shoe suppliers in the market, China Shoes Manufacturer has a plethora of trending shoe items that can be customized with brand logos, taglines, messages, or clipart. The company offers OEM/ODM services catering to businesses building personalized products.

It covers everything from designing and material stitching to assembling and logo printing. One can easily procure China shoes at factory prices for brand marketing at trade shows, seminars, and corporate events.

AMC Shoes Factory

Want to have a simple, uncluttered user experience for sourcing wholesale shoes? AMC Shoes Factory can make your online global sourcing far easier & speedy. It is one of the most trusted China shoes suppliers manufacturers that brings a holistic approach to sourcing & trading. Whether you run a startup, SME, or an established corporate firm, AMC Shoes Factory helps businesses grow & represents them at tradeshows and conventions.

Being one of the most popular shoes supplier in China, it aims to set new standards of excellence through innovative designs, superior quality & budget-friendly pricing. Apart from customized shoes, it also produces a wide variety of other promotional items, such as drinkware, office supplies, tech products, executive gift sets, etc.

Global Sources

Global Sources is a reliable and versatile shoes supplier in China, and stands out as a preferred choice for a diverse range of buyers and businesses worldwide. They offer a unique footwear collection to retailers seeking suppliers for wholesale shoes in China, including sneakers, slippers, formal shoes, and sports shoes for both men and women.

No matter who you are, whether an event organizer, business, or retailer, you can choose this china shoes factory to stock up your footwear inventory at affordable prices. With a commitment to providing accessible solutions tailored to cater to the needs of each brand, Global Sources ensures their products are unique, made with quality, and provide comfort with every step.

Yaaku

Yaaku is one of the most popular shoes manufacturer in China. With a unique and stylish collection ranging from formal shoes, running shoes, and kids' shoes to outdoor shoes, it emerges as the top wholesale supplier for most businesses & organizations for its reliability and affordability.

The website offers all types of shoe products, from slippers and boots to sneakers. Whether you are a reseller or a wholesale vendor, the platform offers high-quality products in bulk at reasonable prices.

The Takeaway

For a popular online shoe retail store, the right China wholesale shoe suppliers need to be onboard. Trading with reliable manufacturers and suppliers can ensure transparency in transactions, suitable minimum order quantity (MOQ), easy customization, and flexible payment terms.

A complete list of the top 10 China wholesale shoe manufacturers in not only helps businesses find popular suppliers but also provides insights about product quality, market trends, and pricing plans.

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