Shoemaking industry Q4 demand slows

After Nike's inventory was reported at higher levels than market expectations, German sporting goods giant Adidas followed suit and lowered its financial forecast for this year. As a result, Taiwan's footwear industry is expected to slow down in the fourth quarter regarding orders and shipments, with unclear visibility for 2023 Q4.

Taiwan's top garment manufacturer Top Star-KY admitted that the company should've been affected but has not received any information from its customers, so it is impossible to assess the impact. The company also emphasized that the current economic environment is pessimistic, prompting concern regarding the future.

Domestic ready-to-wear manufacturers Makalot and Eclat Textile also emphasized last week that they did not receive orders from Adidas as well.

Pou Chen, the world's leading shoemaker, pointed to high inflation, repeated COVID-19 outbreaks, and pressure to raise interest rates in the U.S. had all added variables to global economic growth. However, Pou Chen emphasized that customers have completed orders for Q4 and the shoe-making business has seen minimal impact.

The domestic shoe industry emphasized that after pandemic measures were lifted, the sports and leisure atmosphere has gradually recovered. However, the pressure of inflation and interest rate hikes will inevitably affect customer demand, and brand customers are also actively destocking, causing a short-term decline.