The following research report contains market research, analysis, statistics and business intelligence relating to research on Sporting Goods Industry In Taiwan.

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ABSTRACT
Taiwan's market for sports apparel and related products has not
reached full development, with long-term growth prospects
remaining attractive. Although the market has been adversely
affected by the Asia-wide economic crisis -- and subsequent
rapidly changing macroeconomic environment -- the popularity of
name brand athletic shoes and clothing remains strong. Indeed,
even in the current environment Taiwan consumers are still
readily buying name brand athletic apparel and related products.

In 1997 the total market grew by almost 5 percent to USD189.1
million, while imports increased over 46 percent to USD106.9
million. However, since late 1997 the overall market has slowed
considerably. Local market experters predict that the market
will continue to stutter until the middle of next year.
Traditionally, the sports apparel and related products industry
in Taiwan has been dominated by export business. In 1997, total
exports shrank by 23.6 percent from USD609.2 million in 1996 to
USD465.6 million.

A large proportion of the imports of sports apparel and related
products are shipped from firms located in Southeast and East
Asia, which are mostly U.S. OEM companies. Products directly
imported from the U.S. accounts for approximately five percent of
the total imports. A prime example is the U.S. company Nike, the
clear Taiwan market leader in athletic footwear -- whose shoes
are now overwhelmingly manufactured in Asia. Local retailers
claimed their customers mandate they carry the major brands by
shopping elsewhere when such brands are not stocked.
Furthermore, American companies often start the trends. Recent
examples and predictions for growth segments include
outdoor/natural styling and products and in-line skating. For
the older generations, golf and golfing products retain their
popular appeal.

In 1997, Indonesia and Hong Kong were the clear import market
share leaders with approximately 25 percent each, followed by
three other Asian nations: Thailand (12 percent), Korea (9
percent), and Vietnam (9 percent) and Thailand (7 percent). The
U.S. occupied close to 4.5 percent of the direct import market.

In compiling this report, statistics were drawn from Harmonized
System (HS) codes. Since many sports apparel items are combined
with other clothing, sources from private industry as well as
statistics from the Customs Bureau were used to evaluate market
size. The following HS codes were used in the compilation of
this report:

6103421000-2 Men's or boys' trousers, breeches, and shorts, knitted or crocheted, of cotton
6103431000-1 Men's or boys' trousers, breeches, and shorts, knitted or crocheted, of synthetic fibers
6104621000-6 Women's or girls' trousers, breeches, and shorts, knitted or crocheted, of cotton
6104631000-5 Women's or girls' trousers, breeches, and shorts, knitted or crocheted, of synthetic fibers
6109100000-6 T-shirts, singlets and other vests, knitted or crocheted, of cotton
6109902000-5 T-shirts, singlets and other vests, knitted or crocheted, of man-made fibers
6110200000-1 Jerseys, pullovers, cardigans, waist-coats and similar articles, knitted or crocheted, of cotton
6110300000-9 Jerseys, pullovers, cardigans, waist-coats and similar articles, knitted or crocheted, of man- made fiber
6112110000-0 Track suits, knitted or crocheted, of cotton
6112120000-9 Track suits, knitted or crocheted, of synthetic fibers
6112310000-6 Men's or boys' swimwear, knitted or crocheted, of synthetic fibers
6112390000-8 Men's or boys' swimwear, knitted or crocheted, of other textile materials
6112410000-4 Women's or girls' swimwear, knitted or crocheted, of synthetic fibers
6112490000-6 Women's or girls' swimwear, knitted or crocheted, of other textile materials
6211111000-8 Men's or boys' swimwear, of man-made fibers
6211119000-1 Men's or boys' swimwear, of other textile materials
6211121000-7 Women's or girls' swimwear, of man-made fibers
6211129000-0 Women's or girls' swimwear, of other textile materials
6203421000-1 Men's or boys' trousers, breeches, and shorts, of cotton
6203431000-0 Men's or boys' trousers, breeches, and shorts, of synthetic fibers
6204621000-5 Women's or girls' trousers, breeches, and shorts, of cotton
6204631000-4 Women's or girls' trousers, breeches, and shorts, of synthetic fibers
6402190010-9 Other sports footwear, with rubber or plastic outer soles and rubber uppers
6402190021-6 Football shoes, with rubber or plastic outer soles
and plastic uppers
6402190022-5 Baseball shoes, with rubber or plastic outer soles
and plastic uppers
6402190023-4 Basketball shoes, with rubber or plastic outer soles and plastic uppers
6402190024-3 Tennis shoes, with rubber or plastic outer soles and plastic uppers
6402190025-2 Bowling shoes, with rubber or plastic outer soles and plastic uppers
6402190027-0 Jogging shoes, with rubber or plastic outer soles and plastic uppers
6402190029-8 Other sports footwear, with rubber or plastic outer soles and plastic uppers
6403190010-8 Football shoes, with rubber or plastic or leather outer soles and leather uppers
6403190020-6 Baseball shoes, with rubber or plastic or leather outer soles and leather uppers
6403190030-4 Basketball shoes, with rubber or plastic or leather outer soles and leather uppers
6403190040-2 Tennis shoes, with rubber or plastic or leather outer soles and leather uppers
6403190050-9 Bowling shoes, with rubber or plastic or leather outer soles and leather uppers
6403190070-5 Jogging shoes, with rubber or plastic or leather outer soles and leather uppers
6403190090-1 Other sports footwear, with rubber or plastic or leather outer soles and leather uppers
6404110010-5 Tennis shoes, with rubber or plastic outer soles and textile uppers
6404110020-3 Basketball shoes, with rubber or plastic outer soles and textile uppers
6404110050-6 Jogging shoes, with rubber or plastic outer soles and textile uppers
6404110090-8 Other sports footwear, with rubber or plastic outer soles and textile uppers
9506709000-7 Ice skates and roller skates, including skating boots with skates attached
A. MARKET HIGHLIGHTS AND BEST PROSPECTS

Taiwan consumers continue to be drawn towards name brand sports
apparel. Dozens of world-recognized appareal/shoe labels are
continually scooped up from the sales racks of department stores
and athletic apparel shops across the island. Imported products
are particularly popular among the younger generation and the
older, physically active crowd, with the top selling brands
including Nike, Adidas, Reebok, New Balance, and Fila. A leading
Taiwan distributor, who represents American labels such as New
Balance, Keds, and Sperry, reported a sales increase of 49
percent for the first six months of this year, largely
attributable to market share captured from competitors.

While U.S. labels continue to figure prominently in Taiwan's
sports apparel market -- albeit most often through third-country
manufacturing sites -- American direct imports dominate the
market in three categories: cotton track suits/sweat suits, ice
and roller skates, and bowling shoes. In 1997, imported cotton
track suits from the U.S. amounted to nearly USD 107 thousand,
representing 59 percent of the import market. Also in 1997,
import sales of U.S. ice and roller skates, at USD 3.6 million,
represented 56 percent of the total imports. Finally, from 1996
to 1997 imported U.S. bowling shoes grew by over 4 percent,
representing 44 percent of the 1997 market at USD 98 thousand.
Calculating the total import market for athletic footwear, in
1996 direct U.S. imports surpassed USD 4 million, or 8 percent of
the market; in 1997 direct U.S. imports nearly reached USD 3.8
million, or 5 percent of the market.

Statistical Data
-----------------
Projected Avg. Annual Growth (Unit: USD Million) Rate For
1997 1998(e) 1999(e) Foll. 2 Years

Import Market 106.9 130.0 145.0 15-20 percent
Local Production 547.84 40.0 450.0
Exports 465.6 380.0 380.0
Total Market 189.1 190.0 215.0 10 percent
Imports from U.S. 4.8 6.0 6.5 8-10 percent

Exchange Rates: 28.5 33.5 34.0
Estimated 1998 inflation rate: 2-3 percent

1997 Import Market Share:
U.S., 4.5 percent; Indonesia, 25 percent; Hong Kong, 25 percent;
Thailand, 12 percent; Korea, 9 percent; and Vietnam, 9 percent.

The following sources were used to compile the market information
found above:
1. Monthly Statistics of Imports and Exports: Published by: The
Statistical Department, Directorate General of Customs, Ministry
of Finance.
2. Private industry sources

Best Sales Prospects
------------------------
The major import labels will continue to occupy enormous market
shares in the mainstream athletic shoe and apparel market
sectors. Their aggressive marketing strategies and name brand
recognition crowd out all but the top competitors. Therefore,
new-to-market labels will likely perform best by creating their
own special niche. For example, in-line roller skates and
outdoor/hiking shoes have been slowly gaining in popularity.
Additionally, some predict that the market will be more
profitable in the long term, when market saturation has
dissipated and demand has rebounded with a stronger regional
economy. The U.S. market trend towards outdoor or natural
styling and colors has not yet been fully realized in the Taiwan
market. Retailers predict it may take these products another
year to catch on with Taiwan's consumers. This will allow
smaller American outdoor/natural fashioned athletic wear product
manufacturers sufficient time to establish themselves in the
small, but growing market segment.
B. COMPETITIVE ANALYSIS

The Asian economic crisis is one of the biggest concerns facing
the market. Consumer spending on athletic apparel is good, but
not the booming market segment seen in the mid-1990's. The
sports apparel sector has been plagued with a saturation of
retailers who hold excessive inventory, which, combined with
currency swings and depressed demand, is eroding profit margins.
Exacerbating this situation is the fact that decreased consumer
demand in other Asian markets has resulted in the shipment of
unsold stocks to Taiwan. Indeed, many retailers are currently
trying to sell inventories that were ordered months in advance,
when sales prospects appeared much more favorable. On a more
positive note, lower priced local or no-name brands have not
increased market share. Sources predict the retail segment of
the market may soon see consolidation. However, these same
sources maintain that despite the current macroeconomic problems,
the long-run future for this underdeveloped market remains
bright. The youth market is still expanding and the adult market
remains relatively untapped.

Due to the low demand across the region, Southeast Asian
producers have not been able to capitalize on their recent
currency devaluations to capture more of the market.
Furthermore, foreign companies are becoming more reluctant to do
business with these manufacturers, because of the negative
effects on production schedules related to political and social
unrest. The stability of the macro-environment in the U.S.,
therefore, provides an attractive alternative for Taiwanese
importers and retailers.

Local production is dramatically decreasing, as Taiwanese
companies continue to move overseas to take advantage of labor
cost savings. Thus, as a proportion of the total sports apparel
industry, local production plays a increasingly minor role.
Note: In the athletic shoe market, Taiwan firms remain the top
design houses and often own many of the growing number of
factories in the PRC and Southeast Asia.
C. END USER ANALYSIS

Most of Taiwan's consumers of sports apparel are between 15 and
30 years of age. However, physical fitness amongst the older
generation has become a higher priority lately as well. While
older consumers tend to purchase lower-priced name brand models
or even local brands, younger ones are greatly drawn to more
expensive, popular name brand models. This younger age group
places little weight upon quality or price, but rather, they are
highly devoted to name brand recognition and trend-following.
Basketball shoes and clothing, in-line skating apparel, American
sports teams baseball style hats, sports sandals, and sport t-shirts are the most popular items with the younger consumers.
Older consumers prefer jogging shoes and golf apparel.

The most popular shoe sizes are U.S. 9-10. Retailers generally
order basketball shoes up to U.S. size 11 or occasionally 12,
while all other athletic shoes are stocked in maximum sizes of
U.S. 10 and 10.5. Oversize Athletic clothing with team or brand
name logos is the trend today. However, due to Taiwan's heat and
humidity, oversize hockey and rugby apparel does not do well
here. Retailers expect average product sizes to gradually
increase over the next several years as the relatively affluent
youth in Taiwan become taller and heavier.
D. MARKET ACCESS

Import Climate
------------------
In general, the Taiwan market is open, highly competitive and
receptive to American sporting goods apparel. The current Taiwan
tariff rate system is based on the Harmonized System. The duty
payable on imported products is calculated on an ad valorem
basis. Import duties for most sports apparel in Taiwan are 12.5
percent, while there are no duties levied upon athletic shoes. A
harbor construction fee, amounting to 0.4 percent of declared
value, is levied on all goods arriving by sea.

Distribution/Business Practices
------------------------------------
Most of the big name import labels have their own branch offices
in Taiwan, from which they operate independent retail outlets
(usually in department stores) or distribute product to local
retailers. Smaller firms or niche players typically use
agents/distributors. The young middle class sports apparel buyer
will look to buy his product from department stores or sporting
goods stores. The older generations will still consider open
markets and generic retail stores when buying sporting goods
apparel.

Financing
-----------
A majority of companies prefer to settle accounts using a letter
of credit (L/C), due to Taiwan's relatively low risk environment.
However, the following methods of payment have also been used:
documents against payment, documents against acceptance,
consignment, installment, and open account. U.S. firms and/or
their representatives in Taiwan should carefully consider
available options in accordance with their experience and risk
assessments.
KEY CONTACTS

Associations
--------------
Taiwan Sporting Goods Manufacturers Association
22, Tehhwei Street, 8F
Taipei 10469, Taiwan
Tel: 886-2-2594-1864
Fax: 886-2-2591-9396

Taipei Sporting Goods Association
99, Nan King Road, Section 3, 2F, Room A
Taipei, Taiwan
Tel: 886-2-2651-2126
Fax: 886-2-2651-0822

Taiwan Garment Industry Association
22, Aikuo E. Road, 8F
Taipei, Taiwan
Tel: 886-2-2391-9113
Fax: 886-2-2391-9055

Taiwan Footwear Manufacturers Association
131, Sungkiang Road, 13F
Taipei, Taiwan
Tel: 886-2-2506-6191
Fax: 886-2-2508-1489

Taiwan Clothing Manufacturers Association
202, Nanking E. Road, Section 5, 8F-3
Taipei, Taiwan
Tel: 886-2-2766-6661
Fax: 886-2-2762-5722

Taipei Garment Dealers Association
197, Yenping N. Road, Section 2, 7F-6
Taipei, Taiwan
Tel: 886-2-2553-7958

Traders, Manufacturers and Retailers
-------------------------------------------
Lena International Ltd.
185, Tower A, Chung Shan N. Road, Section 2, 10F
Taipei, Taiwan
Tel: 886-2-2596-4961
Fax: 886-2-2596-1886

Taiwan Buying Service
6, Min Sheng E. Road, Lane 107, 5F
Taipei, Taiwan
Tel: 886-2-2717-2700
Fax: 886-2-2717-2317

Sursun Enterprises Co., Ltd.
342-1, Keelung Road, Section 1, 6F
Taipei, Taiwan
Tel: 886-2-2758-8301
Fax: 886-2-2758-9480

C.I.O Sporting Goods
149-7, Hoping 1st Road
Kaohsiung, Taiwan
Tel: 886-7-771-7123
Fax: 886-7-771-0334

My Action Co., Ltd.
206, Fu Shin S. Road, Section 1, 6F
Taipei, Taiwan
Tel: 886-2-2776-6797
Fax: 886-2-2731-4885

Jans Combinations Co., Ltd.
8, Min Tsu E. Road
Taipei, Taiwan
Tel: 886-2-2594-3131
Fax: 886-2-2596-0184

Choya Co., Ltd.
306, Hsin Yi Road, Section 4, 11F-2
Taipei, Taiwan
Tel: 886-2-2755-2671
Fax: 886-2-2755-2671

BRS Nike Taiwan Inc.
152, Sung Chiang Rd., 13F
Taipei, Taiwan
Tel: 886-2-2740-3550
Fax: 886-2-2751-8596

Mizuno Corporation of Taiwan
363 Sung Chiang Rd., 10F
Taipei, Taiwan
Tel: 886-2-2509-5101
Fax: 886-2-2502-0478

Greengate Industrial Corporation
310-2, Jen Ai Road, Section 4
Taipei, Taiwan
Tel: 886-2-2700-2505
Fax: 886-2-2709-4052

Sakurai Sports Manufacturing Co., Ltd.
35-13, San Lang Road, Ta-Liao Hsiang
Kaohsiung County, Taiwan
Tel: 886-7-788-1121
Fax: 886-7-7881172

Jim Brother's Corporation
380, Hwa Shan Road, Tatu Hsiang
Taichung County, Taiwan
Tel: 886-4-699-1151
Fax: 886-4-699-3742

Fairlin Industries, Ltd.
295, Chung Hsiao E. Road, Section 4, 12F
Taipei, Taiwan
Tel: 886-2-2731-5357
Fax: 886-2-2721-6728

Mention Enterprises and Co., Ltd.
508, Chung Hsiao E. Road, Section 5, 22F-3
Taipei, Taiwan
Tel: 886-2-2759-3221
Fax: 886-2-2759-3223

Davits Industries Ltd.
761, Ming Tsu E. Road
Taipei, Taiwan
Tel: 886-2-2716-0865
Fax: 886-2-2717-4955

Kentti Enterprises Co., Ltd.
20, Min Chuan W. Road, 9F, Room 2
Taipei, Taiwan
Tel: 886-2-2571-7982
Fax: 886-2-2521-3628
TRADE PROMOTION OPPORTUNITIES

The following trade shows are primarily oriented to the foreign
buyer, but may prove helpful in making local market contacts:

Taipei International Sporting Goods Show
Date: March
Organizer: The China External Trade Development Council (CETRA)
5, Hsin-yi Road, Section 5, Taipei, Taiwan
Tel: 886-2-2725-1111, Fax: 886-2-2725-1314
e-mail: http://www.taipeitradeshows.org

Taipei International Textile and Apparel Show
Dates: September
Organizer: The China External Trade Development Council (CETRA)
5, Hsin-yi Road, Section 5, Taipei, Taiwan
e-mail: http://www.taipeitradeshows.org

DISCLAIMER
Information in this report relies on sources including Government Publications, Opinions of industry experts and other public sources. Infomat can accept no responsibility for the accuracy or completeness of such information or for loss or damage caused by any use thereof. All prices subject to change without notice.

$3500 USD
For the 2008 Edition

Published: 2006 August
Market: Mens Womens Childrens
Region: Taiwan
Industry: Apparel
Pages: 45
Delivery: 7-12 Business Days
SKU: infre0000248