In the face of the impact of the Trump administration's new round of tariffs on China on the footwear manufacturing industry, Dongguan Puyuan Shoes Co., LTD. (hereinafter referred to as "Puyuan Shoes") has demonstrated the strategic determination and resilience of Chinese manufacturing enterprises by optimizing the global supply chain, deepening the diversified market and strengthening technical barriers. Hong Xiongci, general manager of the company, said: "Tariff pressure is a challenge but also an opportunity. We will focus on innovation and efficiency, accelerate our global layout, and provide customers with more cost-effective solutions."
Global capacity deployment to hedge tariff costs
In order to cope with the rising tariff costs in the US market, Puyuan Shoes relies on the synergistic advantages of the three production bases in Dongguan, Hunan and Indonesia to flexibly adjust capacity allocation:
Indonesia factory localization production: Since the establishment of Indonesia branch in 2020, its production capacity has increased year by year, relying on Southeast Asian location advantages and lower tariff rates, effectively reduce the cost of North American orders;
Small-batch production order layout: We cooperate with local warehousing and logistics partners of overseas customers to achieve the "small-batch, fast response" order delivery mode, shortening the supply chain cycle by 30%;
Flexible manufacturing cost reduction and efficiency: Through intelligent manufacturing upgrades (such as high cycle machine, hot press automation transformation), Hunan base production capacity increased by 30%, single pair of shoes production cost reduced by 12%, buffer tariff impact.
Emerging markets break through and create new growth engines
While stabilizing the traditional markets in Europe and the United States, Puyuan Shoes accelerated the development of the "Belt and Road" and RCEP regional emerging markets:
Customized product strategy: To meet the needs of consumers in the Middle East and Southeast Asia, GORE-TEX waterproof casual shoes, lightweight flying woven sports shoes and other differentiated products were launched. In the first half of 2024, orders in emerging markets increased by 45% year-on-year;
ODM mode enables local brands: to provide Southeast Asian customers with full chain services from design to production, develop regional brand customers in Vietnam, Malaysia and other places, and increase the proportion of ODM business;
Cross-border e-commerce channels: strengthen digital marketing through its own website platform, develop new online customers, and expand emerging markets such as Africa and Central Asia.
Technology-driven, build a competitive moat
In the face of trade barriers, Puyuan Shoes strengthens its core competitiveness with innovative technology:
Environmental protection materials breakthrough: The use of water-based adhesive, recycled rubber and other green processes, products through REACH, BSCI certification, meet the EU environmental threshold, in 2024, European orders increased by 22%;
Intelligent customization service: Relying on intelligent equipment and rapid proofing technology, to achieve "7 days sample, 15 days mass production" agile response, to attract small and medium-sized brand customer orders;
Industry-university-research cooperation: Jointly develop patent technologies such as antibacterial shoe materials and shock-absorbing midsole with colleges and universities, vigorously develop new technology patents, and consolidate the barriers of "high-tech enterprises".
Future outlook: Define Made in China by resilience
Puyuan Shoes plans to increase industrial investment in the next three years for Indonesia base expansion, warehouse distribution center construction and new material research and development, aiming to exceed 50% of overseas revenue in 2026. Hong Xiongci, general manager of Puyuan Shoes, stressed: "The core advantages of Chinese manufacturing have never changed - efficiency, innovation and the ultimate cost performance. With a global vision and localization, we will continue to create irreplaceable value for global customers."