How Tamil Nadu leveraged China+1 strategy in non-leather footwear space
Subscribe to enjoy similar stories. For years, China was the epicentre of global footwear manufacturing, producing nearly 72% of the world’s shoes in 2016. From Nike to Adidas, Puma, Crocs, and New Balance, virtually every major brand relied on China for production.
But today, a fundamental shift is underway. The trade war under Donald Trump, followed by pandemic-driven supply chain disruptions, forced manufacturers to reduce their reliance on China. Rising labor costs and mounting geopolitical tensions over Taiwan further reinforced the need for diversification.
Vietnam was the first to benefit, with its share of global footwear exports rising from 12% in 2016 to 16% in 2021, as companies adopted the China+1 strategy. Read this | Uttar Pradesh tops Tamil Nadu in GST collection: Myth and reality Now, India is beginning to make its mark—one of the rare instances where the China+1 strategy has truly worked. Tamil Nadu, long a leader in leather footwear manufacturing, is now at the forefront of the shift to non-leather footwear, a trend highlighted in the Economic Survey 2025.
Some of the world’s largest contract manufacturers for Nike, Crocs, New Balance, Adidas, and Puma have already set up or are in the process of establishing operations in the state. These include major Taiwanese manufacturers such as Hon Fu Group, Feng Tey, Pou Chen, and Shoetown Footwear Group, who have collectively invested ₹6,500 crore and created 86,000 jobs. The surge isn’t accidental.
Read more on livemint.com
