Yue Yuen sees lead times and ‘seasonality’ as big - footwearbiz: Lead

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Yue Yuen sees lead times and ‘seasonality’ as big challenges

26/03/2019
Footwear manufacturing group Yue Yuen achieved sales revenues of $9.7 billion in 2018, an increase of 6.3% compared to the previous year. The Taiwanese group, which specialises in producing shoes as an outsource manufacturing partner of major western brands, also achieved an increase of 4% in profits, with a figure of more than $2.4 billion.

In the course of the year, Yue Yuen produced 326 million pairs of shoes across its network of factories. This figure is very slightly up on the volume of shoes the group produced in 2017.

However, there was a decline of 2% in the average selling price Yue Yuen was able to bring in for its shoes, which fell to $16.53 per pair.

“The group’s manufacturing business continues to face a number of uncertainties and challenges, including intense competition and changing consumer demand,” Yue Yuen said on releasing the results. It highlighted shortening lead-times and increased seasonality as particular challenges.

It said it also faces “additional risk” because of the trade friction between the US and China.


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