Summary of Key Points
Domestic traditional men's shoe brands (such as Aokang and Hongqingting) are collectively facing difficulties: declining revenue, significant losses, and large-scale store closures. Meanwhile, sports shoes (especially those for outdoor activities) have rapidly risen, taking over the market share that used to belong to leather shoes. The core reason behind this is a fundamental shift in consumer demand—consumers are no longer focusing on wearing leather shoes as a status symbol or to match specific occasions, but rather on comfort, flexibility, and versatility across different scenarios. This trend is unlikely to reverse in the short term, driven by the prevalence of a more casual and outdoor-oriented lifestyle in the post-pandemic era.
1. Traditional Men's Shoe Giants: Losing Money to the Point of Closing Stores
Former leaders in the men's shoe industry are struggling:
- Aokang: Has lost over 900 million yuan in the past four years and closed more than 3,000 stores. Revenue in the first half of 2026 decreased by nearly 30%, and even after adjusting for non-recurring expenses, it still suffered a loss of 6.6 million yuan. The revenue from its flagship men's shoe segment also fell by 27%.
- Hongqingting: Has been in the red for years, closing nearly 200 stores in 2025 and another 142 in the first half of 2026, and is still in a period of adjustment.
- Fugui Niao: Has already gone bankrupt.
These brands were once popular in third- and fourth-tier cities, but even their franchisees in these markets can no longer sustain operations. For example, Liang Xin, who once opened six Aokang stores in Enshi, Hubei, now has only two left due to the decreasing demand for formal leather shoes.
2. Consumers' Changing Preferences: From Status to Comfort
Why do people no longer prefer leather shoes? The key lies in the change in their purchasing logic:
- In the past: Leather shoes were worn to match certain occasions (such as work, meetings, or annual events). Now, consumers value comfort, style, and versatility—a single pair of shoes should be suitable for work, shopping, and outdoor activities.
- The Post-Pandemic Impact: Remote work and flexible working arrangements have reduced the demand for formal attire, while outdoor activities like camping and hiking have become more popular, making sports shoes the preferred choice. For instance, Xu Wei, a 40-year-old man, only wears leather shoes 1-2 times a year (for annual events) and buys all his new shoes from sports brands, including Keen and On昂跑.
- The Trend towards Casualness: Thin-soled, vintage-style sports shoes and casual business shoes (like Nike Air Max) are now in demand. Consumers prefer a lighter, more comfortable feel.
3. Sports Shoes Taking Over Leather Shoes' Market Share: Malls Are Allowing Outdoor Brands to Expand
The physical space previously occupied by leather shoes is being taken over by sports brands:
- Third- and Fourth-Tier Cities: Street-front stores in shopping malls, once owned by Aokang and Hongqingting, are now occupied by brands like Anta and Xtep, as well as clothing and jewelry stores.
- First-Tier Cities: The prime locations in malls (on the ground floor) were once dominated by luxury and cosmetics brands, but now they are occupied by outdoor brands like Salomon, DeSant, and Keelstone. Mall managers say, "Sports and outdoor brands are in high demand; men's shoes are no longer a priority."
Even franchisees are leaving these brands; those that once relied on them for profits are now turning to sports brands.
4. Competition within the Sports Shoe Market:
The sports shoe market is divided into two segments:
- Mid-to-Low-End Market: Fierce price competition—consumers won't buy shoes that are just a few yuan more expensive. Brands like Nike, Adidas, Anta, and Xtep are all competing in this segment, along with many smaller manufacturers. Xtep's main brand even saw a 2.2% decline in revenue in the first half of 2026, and it has started to reduce its store count.
- Mid-to-High-End Market: Success relies on technology and a unique brand narrative. Brands like On昂跑 highlight their cushioning technology, while Salomon focuses on outdoor running and sponsors events, hiring marketing professionals from luxury brands. These brands grow rapidly and can also influence consumers to adopt an outdoor lifestyle (for example, buying Salomon shoes encourages them to try outdoor running).
5. A Trend of "Deformalization" Across the Wearable Industry
The changes in the men's shoe market are not isolated; the entire wearable industry is experiencing a shift:
- Sweatshirts are replacing suits, and yoga pants are replacing formal trousers; sports shoes are replacing high heels and leather shoes. Consumers are shifting from wearing clothes for specific occasions to wearing what makes them comfortable.
- The demand for traditional business attire has not disappeared, but repurchase rates are low. People usually only buy new leather shoes or suits when they are damaged.
- Emerging small brands, such as PANE and Zuxia Gongye, are gaining traction with stylish, moderately priced products that fill a niche in the market (more comfortable than leather shoes but with a more stylish design than sports shoes).
This trend is driven by a combination of fashion and lifestyle preferences and is unlikely to reverse in the short term. Traditional leather shoe brands that do not adapt will face even greater challenges.
In Summary: It's not that the men's shoe market has shrunk, but rather that consumers' preferences have changed. Traditional leather shoe brands have failed to keep up, and their market share has been taken over by sports and new brands.