Investment of Approximately 550 Million Yuan, Skechers China Northern Production Base Begins Preliminary Production! Target Annual Output of 10 Million Pairs

In her opening remarks, Zhang Tingting, General Manager of Shandong Guanshi Footwear Co., Ltd., said that the project has a total investment of 80 million US dollars, and once fully completed and put into operation, it will have an annual production capacity of 10 million pairs of finished shoes.

Image: Video screenshot

Invest approximately 550 million.

Skechers' northern China production base has begun preliminary production!

According to a recent report by Lightning News:

On June 2, the Skechers Footwear North China R&D and Manufacturing Base Project, a key project signed and launched during the 3rd Qingdao Multinationals Summit, involved a total investment of US$80 million (approximately RMB 550 million).

Shandong Guanshi Footwear Co., Ltd. is a wholly-owned enterprise established by Skechers USA through its Chinese partner, Hong Kong Zhengyu Footwear Co., Ltd., in Shandong.

In 2021, Shandong Guanshi Footwear made its first investment in Nanzhan Street, Wenshang County, by leasing a factory building to produce and export footwear products for Skechers, gradually becoming its core supplier.

Subsequently, Skechers planned to establish an R&D and production base in northern China and invest in its construction through Shandong Guanshi Footwear.

Zhang Tingting, the general manager of Shandong Guanshi Footwear Co., Ltd., introduced that the total investment of the project is 80 million USD, and upon full completion and operation, it will reach an annual production capacity of 10 million pairs of finished shoes.

At present, the Skechers Footwear China Northern R&D and Production Base project has been preliminarily completed and put into operation, achieving annual sales revenue of RMB 300 million and creating 1,200 jobs.

Chinese low-cost shoes flood in

Brazil’s footwear industry is under pressure.

According to DatamarNews, in 2025 Brazil’s footwear industry was affected by a combination of factors, including a large influx of imported shoes, weakening export markets, and weak domestic consumption, leading to declines in production, employment, and exports.

Data show that Brazil’s footwear imports in 2025 increased by 20.6% year on year, reaching 43.2 million pairs, a ten-year high. Among them, footwear from China, Vietnam, and Indonesia accounted for 78.5% of total imports.

The average price of Chinese footwear entering the Brazilian market is only about USD 4.5 per pair, exerting significant price pressure on local manufacturers.

Under the import shock, Brazil's domestic shoe production is expected to decline by 1.9% in 2025, falling to 847.5 million pairs, with factory capacity utilization dropping to 73%, the lowest in three years.

The employment sector is also affected. The formal job positions in Brazil's footwear industry have decreased by 1.1%, resulting in the loss of approximately 3,000 job opportunities, with the number of jobs in the main export center, Rio Grande do Sul, declining by 5.7%.

Haroldo Ferreira, executive president of the Brazilian Footwear Industries Association (Abicalçados), said that 2025 has been a challenging year for the local footwear industry, with weak consumption in the second half, rising household debt, and a worsening international environment all adding pressure to the sector.

He believes that the next challenge is how Brazilian manufacturers can maintain their space in a market continuously fragmented by foreign competitors. It is expected that by 2026, U.S. tariffs, Argentina's economic slowdown, and rising global logistics costs will continue to suppress the performance of Brazilian footwear exports.