Taipei, July 10, 2012 (CENS)--Johnson Health Tech, the leading fitness equipment manufacturer in Taiwan, has seen a sharp upsurge in sales growth due to the upcoming Olympics. The Pou Chen Group and Feng Tay Group, the world's top two footwear makers, also expect to win increased revenues from the event.
Johnson's chairman, K.C. Luo, noted that people in Western countries are greatly inspired by the impending Olympics, but that because of the global economic downturn they tend to go to gyms with simple facilities instead of costly sport clubs. Preliminary statistics show that Johnson's sales of fitness equipment have benefitted from this, with revenues growing by more than 30% for five months in a row. The company expects the demand for fitness equipment to rise further when the time of the Olympics arrives, making the outlook for this year highly optimistic.
The Olympics have also brought added demand for running shoes, basketball shoes, and football shoes. Yue Yuen Industrial Holdings, a Hong Kong-listed company under Taiwan's Pao Chen Group and an original equipment manufacturer (OEM) for major international footwear companies including Nike, Adidas, and Puma, expects to benefit from the Olympics boom.
Yue Yuen's shipment volume fell by 1.2% year-on-year (YoY) from last October to the end of March this year, to 161 million units, but the revenue produced increased by 9.4%, reflecting a significant increase in the unit prices of sports shoes.
The Feng Tay Group, a major OEM supplier to Nike (accounting for more than one-sixth of that company's sales of sports shoes, basketball shoes, American football shoes, Jordan Brand shoes, athlete training shoes, skating shoes, and football shoes), experienced a 9% YoY increase in shipments in May, to 6.56 million units.
(by Andrew Wang)