Yue Yuen adjusts strategic direction

The company is reportedly the largest branded athletic and casual footwear manufacturer in the world.

Hong Kong-based Yue Yuen Industrial Holdings Limited has reported a 0.5 per cent year-on-year increase in revenue during 2016 to $8.48 billion. According to a company statement, revenue for its footwear manufacturing division declined by 1.6 per cent, although production volume grew between 2015 and 2016 by 1.4 per cent to 322 million pairs. The growth in volume was offset by a fall in average selling prices.

The revenue for the group’s retail arm, Pou Sheng, grew by 6.2 per cent in 2016 to $2.44 billion. In reaction to the overall figures, the group has announced that it is to put more strategic emphasis on transforming its business model from offering ‘economies of scale’ and expertise in footwear manufacturing to ‘economies of value’. Yue Yuen Industrial Holdings is introducing what it calls ‘innovative services and solutions’, and will integrate its supply chain process.

“We are pleased with the group’s performance, despite the presence of uncertainties and slow global macroeconomic growth,” said Lu Chin Chu, chairman of Yue Yuen Industrial Holdings. “We will continue to seek greater efficiency and provide value added solutions to our brand customers, while balancing the need for sustainable development.”

Yue Yuen Industrial Holdings is reportedly the largest casual and athletic footwear manufacturer in the world. It also produces original equipment and original designs for a number of international companies.

Publishing Data

This article was originally published on page 2 of the May 2017 issue of SATRA Bulletin.

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