Zhang Congyuan, The shoe king

17 November 2022

Born in 1948 into a farming family in rural Yunlin, Taiwan, Zhang Congyuan worked in a women’s shoe factory after graduating from agricultural school.

Feeling like an entrepreneur already, he saved year after year to launch his own business. Nevertheless, his beginnings in the 1980s were very modest. He did not have enough money to buy a normal factory so he converted a pigsty next to rice fields in western Taiwan.

Despite an unattractive exterior, his factory produced quality shoes. In the late 1980s, Zhang launched other shoe factories in Taiwan and in the Chinese province of Guangdong. At the time, competition was fierce: Guangdong was known as the « factory of the world », where everything from handbags to shoes to Christmas decorations was manufactured for export. 
However, he soon found an opportunity to make a name for himself by entering vulcanised shoes niche (shoes popular with skateboarders for their soft, gummy rubber soles). In the 1990s, when these shoes became fashionable, Zhang was already ahead of the curve and became partners with Converse and Vans. 
Converse went bankrupt in 2001. Two years later, when Nike bought the brand, it was on Converse’s recommendation that they formed a partnership with Zhang. Zhang Congyuan adhered to the « small profit but fast turnover » marketing method. He then specialized in manufacturing shoes for major international brands. Without delay, Zhang Congyuan expanded and opened a factory in Vietnam and other parts of Southeast Asia where there was more cheap labour. Already recognised in the market and favoured by brands, these low costs have further consolidated its leadership.

Zhang specialized in foundry business and officially created Huali Group in 2004.

Over the years, he has built up a series of partnerships. Today, Huali works with Puma, Ugg, Teva and Hoka One One. Huali Group is listed on the Shenzhen stock exchange since April 2021, propelling Zhang to top of the Taiwan Rich List.
Sustainable development has also been integrated into Huali’s strategy. Through this strategy and the empowerment of workers, the group has managed to control and minimise  negative impact of all its activities on environment, health and safety of employees, enabling the group to become greener and fairer. The company’s sustainability comprises four components: CR - labour relations; ESH - environment, safety and health; WW - waste and water; EC - energy and carbon.

Passion, integrity and respect are integral part of Zhang’s management style, which he shares with his employees, partners and customers.

Zhang’s company also managed to secure its market position during coronavirus health crisis. Although global consumer environment was affected by the pandemic in 2020, Huali maintained stable capacity and shipments. 
Zhang also co-founded Hong Kong-listed shoe manufacturer Symphony Holdings, but has since sold his interest and is no longer with the company.
« I am a boring person,  he said. I’m just going to continue to do the things I’m good at».
Despite all his success, he keeps a low profile, often downplaying his success and rarely giving interviews. The Taiwanese media call him the « mysterious shoe king ».  He shares his fortune with wife and children.

« To get to the bottom of it, it’s just a question of whether you have the determination to do better than the others, » he said.

IN A FEW FIGURES

  • Headquarters in Zhongshan, Guangdong, China
  • 150,200 employees
  • 300 subsidiaries
  • Sales 2022: $2.9bn
  • Net profit 2022: $470M
  • Market capitalisation: $8bn
  • 180M+ shoes/year
  • Factories in China, Vietnam and Dominica
  • 50 years of experience

SPORT SHOE SECTOR IN CHINA

  • Global market 2020: $100bn 
  • Huali: No.2 manufacturer worldwide
  • Largest market: Asia Pacific
  • 6 out of 10 pairs made in China
  • China = largest retail market

At 74, Zhang Congyuan is the richest man in Taiwan with $9bn. He is founder and head of Huali Industrial, world’s second largest sports shoe manufacturer. (source: Forbes, November 2022).

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