China’s “King of Leather Shoes” Shuts Nearly 800 Stores in Four Years

BEIJING, Sept. 18, 2026— A major Chinese leather-shoe manufacturer once widely known as the country’s “King of Leather Shoes” has closed nearly 800 stores over the past four years, highlighting the challenges facing traditional footwear retailers as consumer preferences and shopping habits change.

Aokang International, one of China’s major privately owned footwear companies, had reduced its domestic physical-store network to1,757 outlets by the end of June 2026, down from more than 2,600 four years earlier. During the first half of this year, the company opened 71 stores but closed 150, resulting in a net reduction of 79 outlets.

Revenue Falls Despite a Return to Profit

Aokang International reported operating revenue of768.5 million yuan ($108 million)for the first half of 2026, down 28.88% from the same period a year earlier.

The company recorded net profit attributable to shareholders of 17.57 million yuan, compared with a loss of 92.04 million yuan in the first half of 2025. However, excluding non-recurring items, the company still posted a loss of 6.61 million yuan.

The figures suggest that the improvement in reported profit has not yet translated into a broad recovery in the company’s core footwear operations.

A Major Change in Retail Strategy

The contraction of Aokang’s store network reflects a broader restructuring of China’s traditional footwear industry.

For years, leather shoes were closely associated with formal business attire and workplace dress. However, casual clothing, sports shoes and more versatile footwear have become increasingly common among younger consumers.

Industry reports have pointed to a decline in traditional formal leather-shoe demand, while lighter, casual and sports-oriented footwear has gained greater attention.

Aokang has also been adjusting its product and retail strategy as it responds to changing consumer demand.

Aokang Brings in New Investors

The store closures came at the same time as a significant change in the company’s shareholder structure.

On Sept. 17, Aokang International announced that its controlling shareholder, Aokang Investment Holding, and actual controller Wang Zhentao had agreed to transfer a combined28.07 million shares, representing 7% of the listed company, to Zhejiang Hangshu Technology Development Partnership.

The agreed transfer price was 8.17 yuan per share, with the transaction worth approximately 229 million yuan.

Aokang Investment also agreed to sell another 20.05 million shares, or about 5% of the company, to individual investor Chen Haifeng for approximately 164 million yuan.

As a result, Wang Zhentao and his son Wang Chen are expected to receive approximately393 million yuanfrom the share transactions. Despite the transfers, they will remain the company's controlling shareholders and actual controllers.

The Changing Leather-Shoe Market

Aokang’s experience comes amid a wider adjustment in China's footwear industry.

Traditional leather-shoe manufacturers are facing competition not only from domestic and international brands, but also from sportswear companies and fast-changing consumer trends.

The challenge is no longer simply how many stores a footwear company can operate. Companies must also determine which products consumers want, where those products should be sold and how physical stores can complement online channels.

Aokang’s latest figures show that reducing the number of stores has become an important part of its response to a weaker traditional retail environment.

From Expansion to Restructuring

Aokang International was founded in 1988 and listed on the Shanghai Stock Exchange in 2012. The company operates the Aokang and Kanglong brands and has long been one of China's best-known domestic leather-shoe manufacturers.

The sharp reduction in its store network illustrates how China's footwear market is moving away from the large-scale physical expansion model of the past.

For Aokang and other traditional shoe companies, the next stage will depend on whether they can turn store optimization, product innovation and changing consumer preferences into sustainable business growth.