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Tag: li & fung

  • Li & Fung Acquires Uk’s Orrsum In Strategic Move Towards Platform-based Growth

    Li & Fung Acquires Uk’s Orrsum In Strategic Move Towards Platform-based Growth

    Renowned supply chain management firm, Li & Fung, headquartered in Hong Kong, has recently announced the acquisition of Orrsum, a prominent UK-based supplier specializing in hosiery and underwear. The financial details of the deal remain undisclosed at this point.

    Orrsum’s Stature and Future Plans

    Established in 1998, Orrsum has an impressive record of producing more than 50 million pairs of socks annually, distributing to over 5,000 retail outlets on a global scale. The company’s reputation is solidly backed by its product expertise, innovative development model, and robust customer relationships.

    As part of the acquisition agreement, Orrsum will continue to operate under the umbrella of Li & Fung Europe. The leadership will remain unchanged with William Orr at its helm. It aims to capitalize on Li & Fung’s advanced AI-driven digital infrastructure and expansive sourcing network spread across 40 economies. This strategic move is expected to enhance supply chain agility, facilitating entry into new markets and channels.

    Significance of the Acquisition

    Destan Bezmen, who serves as the president of Europe, emphasized that this acquisition is a critical move in the company’s expansion strategy. He expressed confidence that integrating Orrsum’s category leadership and product development capabilities with Li & Fung’s digital infrastructure and global reach will enable them to scale high-demand categories. Furthermore, it will expand their customer offerings and lead to faster, more flexible execution across different markets.

    This agreement signifies Li & Fung’s first acquisition in more than 10 years and the maiden one since it turned private in 2020. The company shared that this transaction is a part of its strategic shift towards platform-based growth. This new direction places a strong emphasis on scalable product categories, digital integration, and the development of resilient supply chain solutions.

    Li & Fung has previously partnered with US apparel brand, Sanctuary, in October of last year. This collaboration aimed at the creation and distribution of a new women’s denim line under a licensing agreement.

    Questions & Answers

    What is the significance of Li & Fung’s acquisition of Orrsum?
    This acquisition marks a critical step in Li & Fung’s expansion strategy, allowing the company to scale high-demand categories, broaden customer offerings, and facilitate faster, more flexible execution across markets.

    How will Orrsum operate following the acquisition?
    Orrsum will continue its operations under Li & Fung Europe and maintain its existing leadership led by William Orr. The company will leverage Li & Fung’s AI-enabled digital infrastructure and extensive sourcing network to boost its supply chain agility and facilitate expansion into new markets and channels.

    What is the strategic shift Li & Fung is aiming for with this acquisition?
    The acquisition is part of Li & Fung’s strategic pivot towards platform-based growth, focusing on scalable product categories, digital integration, and the development of resilient supply chain solutions.

  • Li & Fung to launch Sanctuary denim under licensing partnership

    Li & Fung to launch Sanctuary denim under licensing partnership

    Li & Fung – a global brand distribution company based in Hong Kong – has teamed up with US apparel brand Sanctuary to create and distribute a new line of women’s denim under a licensing agreement.

    Sanctuary said the partnership will help the brand expand its denim category, reach more customers, and diversify its distribution channels.

    The collection will feature a various denim in different cuts and washes, as well as shorts, skirts, and jackets. The washes will include white, light, medium, dark, and black colour options.

    Additionally, the denim line will be made from responsibly sourced cotton and recycled materials, using innovative, eco-friendly washes to minimise water usage and chemical waste.

    Deb Polanco, co-founder and chief creative officer of Sanctuary, said the collaboration aims to leverage Li & Fung’s expertise to meet the growing demand for their products.

    “We are dedicated to providing perfectly fitting pants, building on our reputation as master pant makers and creators of the original 90s cult cargo,” Polanco added.

    “We are excited for our customers to explore the new denim collection this spring and find their new favourite jeans, shorts, or jacket.”

    The Li & Fung x Sanctuary denim collection is set to launch in February next year at department stores, specialty retailers, and online, and will also be available for wholesale.

    Sanctuary was founded in Los Angeles in 1997 by Polanco and her husband Ken. The company says on its website that its designs reflect “the laid-back aesthetic of California, the effortless attitude of New York, and the adventurous spirit of the world to inspire and guide women through their 24/7 style”.

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  • Li & Fung reveals first private-label brands created for JD

    Li & Fung reveals first private-label brands created for JD

    Li & Fung Limited, the world’s leading supply chain solutions partner for consumer brands and retailers, today announced that as part of a strategic investment made by JD.com in 2020, it is partnering with JD.com to provide end-to-end digital supply chain management services for JD.com’s private brand initiatives.

    Together, they are creating a multi-category collection that includes homeware under the brands “Made by JD” and “Best Home”, and developing a pet product brand called “Jingmeng” (“Cute Pet”) to capture China’s burgeoning pet care market.

    Building on JD.com’s investment and strategic digital supply chain partnership with Li & Fung, focusing on private brands, the joint venture’s newest initiative will leverage the emerging C2M (consumer-to-manufacturer) business model that is rapidly gaining momentum in Mainland China.

    C2M enables manufacturers to dramatically shorten the time from design to consumer from the industry average of 40 weeks to as little as two weeks, delivering high-quality, trend-responsive, products to the consumer. Products are tested in multiple SKUs of small quantities through e-commerce channels, providing more accurate data analysis of end-consumer preferences so that iterations can be made quickly and inventory can be adjusted in real-time.

    “JD.com can leverage Li & Fung’s 3D product design expertise and supply chain know-how to create and produce these new private label brands,” said Mr Wilson Zhu, newly-appointed head of C2M initiatives at Li & Fung.

    “By continuing to leverage the respective strengths of both companies we will deliver precisely what consumers are looking for – within their budget and at a much faster speed – through better forecasting, smarter production and maximum supply chain efficiency.”

    Mr Wang Xiaosong, Senior Vice President of JD.com and Head of JD.com’s private brands division said, “Li & Fung’s industry-leading 3D product design capabilities and wide-ranging product category expertise will greatly enhance our ability to create private-label brands that online consumers welcome and trust. The brand development process will also be informed by insights from our big data analysis”.

  • Li & Fung launches incubator LFX to kickstart sustainable consumption

    Li & Fung launches incubator LFX to kickstart sustainable consumption

    With the rapid evolution of the retail industry shaped by digital technologies and complex consumer demands, the parent company of Li & Fung Limited, the world’s leading supply chain orchestrator, today launched a new company – LFX – to capitalize on new digital opportunities transforming the retail industry and enabling supply chain sustainability.

    LFX’s business model is focused on being an incubation, investment, and operating platform providing digital solutions and digitally-enabled services across the end-to-end consumer goods supply chain. LFX will launch and operate digital ventures delivering solutions directly to brands, retailers, e-commerce companies, C2M (consumer-to-manufacturer) players, as well as manufacturers. Its solutions aim to cover all aspects of the value chain, encompassing trade, information, and fund flows. Its initial ventures will focus on 3D digital product development and supply chain fintech. Additionally, a venture capital arm has been formed to identify and invest in technologies that transform global retailing, supply chain, and logistics.

    As an offshoot of Li & Fung, LFX brings knowledge, hands-on experience spanning 100+ years, and relationships across the global supply chain. LFX has the unique ability and insights to identify and bring to market digital technologies that will have an immediate impact today, while also knowing what needs to happen next to realize the sustainable supply chain of the future, at a time when the retail industry is being shaped by digital technologies and complex consumer demands.

    Spencer Fung, Group Executive Chairman, Li & Fung, and LFX said, “We have established LFX as a separate company to build on Li & Fung’s supply chain knowledge to bring new ways of thinking and revolutionize how we create, make and sell products. Sustainable consumption starts with supply chain digitalization and LFX is forming an ecosystem that connects the innovations, people, and companies committed to accelerating digitalization and transforming the retail industry.”

    Ed Lam, CFO and Executive Committee Member of Li & Fung, has been named CEO of LFX. He brings over 25 years of strategic, financial, and commercial experience with deep supply chain knowledge and insights to lead the new company. Li & Fung is in the process of appointing a new finance leader.

    “Roughly 40 million tons of textile waste goes to landfill every year, and it is estimated that just 60% of garments were sold at full price[1]. Sustainable consumption requires behavioral shifts, and it starts with the supply chain. Our goal at LFX is to reduce the environmental impact of our industry and promote sustainable consumption. We believe that by merging real-world industry experience with new ideas that entrepreneurs and technologists bring, we get practical innovations the industry will embrace,” said Ed Lam, Chief Executive Officer, LFX.

  • Li & Fung, JD to invest $100 million in developing a future digital supply chain strategy

    Li & Fung, JD to invest $100 million in developing a future digital supply chain strategy

    Chinese e-commerce giant JD has invested US$100 million in Li & Fung via newly issued capital as a move to further develop its digital supply chain.

    The move is expected to assist Li & Fung expands its own business within the Chinese mainland via private-label initiatives, using the JD relationship and its partnership with Singapore-based logistics solutions provider GLP to further develop its end-to-end digital supply chain. JD’s own proprietary supply-chain technologies have already contributed to fully integrated digital retail and supply-chain platforms designed to serve its omnichannel strategies.

    “Amidst the continuing digital disruption to retail and the ongoing global trade tensions, compounded by the dramatic impact of Covid-19, the global retail supply chain has become more and more complex,” read a statement by the firm. “With the breadth and depth of its global sourcing and production ecosystem, pan-Asia logistics network, and industry-leading digital product development capabilities, Li & Fung is helping global retailers and brands navigate a highly uncertain and ever-changing macro environment.”

    “Our goal to create the supply chain of the future and to improve the lives of 1 billion people in our global supply chain remains more relevant than ever in this turbulent world,” said Li & Fung CEO Spencer Fung. “The partnership with GLP and the addition of JD will be instrumental in further strengthening Li & Fung.”

    The firm will remain under the control of the Fung family who are retaining 60 percent of voting shares.

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  • Li & Fung Partners with JD.com to Accelerate Development of Digital Supply Chain

    Li & Fung Partners with JD.com to Accelerate Development of Digital Supply Chain

    Li & Fung, today announced a strategic investment of US$100 million from JD.com , with newly issued capital to further develop its digital supply chain. The Fung Family will continue to retain control of the Company with 60% of the voting shares.

    Li & Fung has been on a journey to create the Supply Chain of the Future and the strategic cooperation with JD will accelerate this development with a proven digital partner. Li & Fung will also grow its business in China by partnering with JD on private label initiatives for the China domestic market by leveraging its global network and digital supply chain. With the strong partnership between the Fung Family and Singapore-headquartered GLP Pte Ltd., and now the addition of JD, Li & Fung will be able to leverage its scale and digital capabilities to continue its journey of creating the end-to-end digital supply chain.

    As China’s leading technology-driven e-commerce company, JD is transforming to become the leading supply chain-based technology and service provider, which fits well with Li & Fung’s goal of creating the Supply Chain of the Future. JD has been developing proprietary supply chain technologies for many years and has created digital retail and supply chain platforms that are fully integrated to support its omnichannel strategies.

    Amidst the continuing digital disruption to retail and the ongoing global trade tensions, compounded by the dramatic impact of Covid-19, the global retail supply chain has become more and more complex. With the breadth and depth of its global sourcing and production ecosystem, pan-Asia logistics network, and industry-leading digital product development capabilities, Li & Fung is helping global retailers and brands navigate a highly uncertain and ever-changing macro environment.

    Spencer Fung, CEO of Li & Fung, said: “Our goal to create the Supply Chain of the Future and to improve the lives of one billion people in our global supply chain remains more relevant than ever in this turbulent world. The partnership with GLP and the addition of JD will be instrumental in further strengthening Li & Fung.”

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  • Li & Fung to delist this month

    Li & Fung to delist this month

    The privatization and delisting of Li & Fung Limited is set to proceed this month after 97 percent of shareholders who were not a party to the transaction voted in favor of the move.

    The key vote paves the way for Golden Lincoln Holdings I Limited, owned by the Fung Family and Singapore-based global logistics warehouse operator GLP, to purchase all the shares of Li & Fung. The company expects to delist on May 27 after a court hearing in Bermuda, where the company is registered, which scheduled for May 21. These are the final steps in the process.

    “I am pleased that our shareholders are supportive of the privatization proposal for Li & Fung,” said William Fung, group chairman.

    Li & Fung, which has been listed in Hong Kong for nearly 30 years, will remain under the control of the Fung family, which will hold 60 percent of the voting shares in the business, post-delisting. GLP will hold the remaining 40 percent of the voting shares and 100 percent of the non-voting shares, resulting in the effective economic ownership of 67.67 percent of Li & Fung.

    In a statement, the company said its plan to create “the Supply Chain of the Future remains more relevant than ever” with the digital disruption to retail and the ongoing uncertainties of the US-China trade war, compounded by the dramatic impact of Covid-19 on retail supply chains.

    “With the breadth and depth of its global sourcing and production platform, pan-Asia logistics network, and industry-leading digital product development capabilities, Li & Fung is helping retailers and brands navigate a highly uncertain and ever-changing global environment.”

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  • Bankruptcies, store closures dent Li & Fung turnover

    Bankruptcies, store closures dent Li & Fung turnover

    Record store closures and bankruptcies in the retail industry dented turnover and profit for supply-chain solutions company Li & Fung.

    However the company said the results would have been worse had it not been for market-share gains by some of its key customers.

    The company released its results on Friday, along with notice of a takeover proposal which would see the company delisted.

    Core operating profit fell by 22.9 percent to US$228 million, which the company attributed to a 10.1-per-cent decline in turnover to US$11.4 billion. Besides store closures and bankruptcies, a trend of continued destocking by customers and a decision to exit “a number of higher-risk and non-strategic customers” also impacted sales. Net profit attributable to shareholders was US$17 million, representing a return to profitability.

    “While our financials were affected by strong headwinds in the retail sector and global markets, we achieved important gains in our goal of creating the Supply Chain of the Future in our recently completed three-year plan,” said Spencer Fung, Group CEO.

    “We are successfully transforming from a traditional, analog agent into a unique digital supply-chain service provider. We now have a leadership position in 3D digital product development and are delivering a suite of value-added services to our customers.”

    He said the group is continuing to manage the ongoing impact of the US-China trade war, increased complexity of global supply chains and, more recently, the coronavirus pandemic.

    “We are working around the clock with our customers and suppliers during this period of deep uncertainty. Our teams on the ground across the world are actively supporting customers, just as we did during the US-China trade war to help address the disruptions to their business.”

    Meanwhile, Li & Fung revealed a proposal has been lodged to privatize the company. Subject to shareholder approval, the Fung family, which already has a controlling interest in the group, will partner with Singapore-headquartered logistics warehouse operators and investor Golden Lincoln (GLP) to buy outstanding shares in the business. After the transaction is complete the Fung family will hold 60 percent of the shares and GLP 40 percent, with the company delisted from the Hong Kong stock exchange.

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  • Li & Fung signs Arctic Ocean shipping pledge

    Li & Fung signs Arctic Ocean shipping pledge

    Supply chain solutions firm Li & Fung has signed a pledge under its logistics business LF Logistics to support an initiative to prohibit shipping through the Arctic Ocean.

    The initiative was launched by its customer Nike with Ocean Conservancy.

    Although LF Logistics does not use any Arctic sea routes, the commitment indicates the firm’s willingness to share responsibility for preserving the Arctic.

    A statement released by the firm said that the rapid reduction of Arctic sea ice caused by climate change could possibly increase cargo transportation through Arctic sea routes that were previously unnavigable, offering shorter transit times compared to traditional routes. This raises major environmental risks to marine life as well as the human population that relies on a healthy Arctic ecosystem for its livelihood.

    “We are proud to support Nike’s leading role in this pledge which will help prevent harmful trans-Arctic shipments,” said Li & Fung group president Joseph Phi. “Li & Fung is committed to operate supply chains in a responsible and sustainable manner. We strongly believe in the power of collaboration on urgent action which will bring about a change in the industry and protect the fragile Arctic ecosystem.”

    “Our support to Nike and Ocean Conservancy is critical to the future of this already fragile region,” said Fung Group executive VP sustainability and government and public affairs Harsh Saini. “The severe impact of climate change on the Arctic ecosystem is apparent, as evidenced by the rapid reduction in sea ice. The possibility of increased shipping will have catastrophic effects on our ocean.”

    In August, Fung Group announced its commitment to the Fashion Pact, a coalition of more than 30 global fashion and textile companies pledging to reduce the environmental impact of the fashion industry. Presented at the G7 summit by French president Emmanuel Macron, the Fashion Pact focuses on stopping global warming, restoring biodiversity and protecting the oceans.

    The objectives of Nike and Ocean Conservancy’s Arctic Shipping Pledge closely align with the Fashion Pact as well as Li & Fung’s stand on pollution prevention and the implementation of environmental responsibility programs into its operations and supply chains.

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  • Retail bankruptcies dent Li & Fung turnover

    Retail bankruptcies dent Li & Fung turnover

    Retail bankruptcies and destocking impacted Li & Fung turnover during the first half of this year, but the world’s largest supply-chain solutions provider returned to profit.

    On a like-for-like basis, turnover decreased 8.4 per cent to US$5.356 million as brands and retailers continued to face pressure on sales and margins. However, those factors were offset by growing market share for some of Li & Fung’s key customers and new customer wins.

    Core operating profit decreased 18.6 per cent to US$105 million due to a decrease in turnover and total margin in the Supply Chain Solutions business, and continued investment in digitalisation in line with the company’s long-term plan.

    However, profit attributable to shareholders swung back to positive, at US$21 million compared with a loss in the same period last year of US$86 million.

    “We are facing increasing geo-economic instability and uncertainty,” said group chairman William Fung. “Regardless of other factors, the acceleration of the migration of production out of China will continue given China’s upgrading of its industrial base from a manufacturing exporter to a high-technology service provider.”

    Fung said the company has experienced constant fluctuation in global trade over its long history and the current challenge was not entirely new.

    “That is why we continued to maintain a well-diversified sourcing network spanning more than 50 economies and avoided over-reliance on any single market, even when the environment appeared benign. This continues to be the right approach. Our ability to leverage this extensive network puts Li & Fung in the best position to help our customers optimise their sourcing and production and minimise tariff impact. The proliferation of bilateral free trade agreements has become the new norm, and this presents Li & Fung with opportunities not seen for the past 20 years.”

    Spencer Fung, group CEO of Li & Fung, said the company’s new management team has been focused on restructuring the company and all operational KPIs are now improving for both customers and suppliers.

    “We are starting to gain momentum and winning market share and new customers due to our operational excellence, global diversified network and 3D virtual-design services. As a result, turnover decline is stabilising and beginning to bottom out.”

    The new management team has been focused on accelerating the company’s turnaround and digital transformation, a strategy already producing positive results, he said.

    The digitalisation transformation has continued to make significant progress with more customers approaching Li & Fung for digital services and assistance in integrating digital product development into their work processes. The company is helping brands and retailers “take their own digital leap” into digital design and development, digital planning and assortment, and digital selling.

    Meanwhile, the logistics business continued its profitable growth momentum in the first six months of this year. In-country logistics services had strong top-line and bottom-line double-digit growth, the company said.

    China continued to lead the way, supported by an upsurge of domestic consumption, especially via e-commerce for which LF Logistics enjoyed first-mover advantage due to its early investment in e-logistics. Accelerated development in LF Logistics’ Asean operations contributed to high growth rates and the new markets of South Korea, Japan and India recorded “impressive results”.

    During the half year, Singapore’s Temasek completed a US$300 million investment to take a 21.7-per-cent stake in LF Logistics, valuing the business at $1.4 billion.

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  • Li & Fung announces investment of US$300 million by Temasek in LF Logistics

    Li & Fung announces investment of US$300 million by Temasek in LF Logistics

    Li & Fung Limited (“Li & Fung,” “the Group,” or “the Company;” SEHK: 494), the world’s leading supply chain solutions partner for consumer brands and retailers, today announced it has entered into a Subscription Agreement with Temasek, the Singapore-headquartered investment company  (“Temasek”), for a cash consideration of US$300 million for approximately 21.7% stake of its Logistics business (“LF Logistics”).

    The investment values LF Logistics at approximately US$1.4 billion on a post-money equity valuation basis. Upon completion, Li & Fung will remain a controlling shareholder of LF Logistics, which at a 78.3% stake equates to approximately HK$1 of the Company’s current share price. Proceeds from the investment will be used to fund future capital expenditures, repay existing bank facilities and accelerate business growth initiatives at LF Logistics. As a result of this investment, the proposed spin-off IPO will be postponed until further notice.

    LF Logistics has achieved multiple-year double-digit organic growth and it maintains strong momentum from multiple growth drivers, including robust growth in China, the e-logistics boom, accelerated development in ASEAN across all of its services, and its rapid expansion into new geographies including Japan, Korea and India.

    Josep Phi, Group President, Li & Fung said, “We expect the strong growth of LF Logistics to continue. With operations in all of Asia’s fastest growing cities, we are well positioned to capitalize on rising middle-class consumption and our early investment in e-logistics allows us to enjoy first-mover advantage. Our logistics strength combined with Li & Fung’s sourcing and new digital supply chain solutions represents a unique end-to-end offering that encompasses the entire value chain.”

    Spencer Fung, Group CEO, Li & Fung added, “The investment from Temasek will allow us to unlock the value of LF Logistics and accelerate its business growth. It will also enhance Li & Fung’s capital structure and financial flexibility. Our strong operating cash flow and solid balance sheet provides us with ample liquidity to fund future growth and complete our transformation efforts, as we execute our Three-Year Plan goal of creating the Supply Chain of the Future.”

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  • Li & Fung Announces 2018 Annual Results

    Li & Fung Announces 2018 Annual Results

    Li & Fung Limited, the world’s leading supply chain solutions partner for brands and retailers, today announced its annual results for the year ended 31 December 2018.

    For the year under review, the Company was affected by the rapidly changing retail landscape, with record store closures and customer bankruptcies. Owing to the Company’s investments in a speed-enabled supply chain, its customers have been able to reduce their inventory levels, although this produced short-term negative impacts on the Company’s turnover. The ongoing US-China trade war had a minimal impact on Li & Fung’s business due to the company’s diversified sourcing network outside of China.

    On a like-for-like basis and excluding the impact of the strategic divestment of the three Product Verticals in April 2018, which triggered a one-off disposal loss of US$114 million, core operating profit (“COP”) of Continuing Operations decreased by 20% to US$285 million. This was largely due to decreases in turnover and total margin in the Supply Chain Solutions business, as well as continued investment in digitalization in line with the Company’s long-term strategic plan. Turnover decreased by 6.2% to US$12.7 billion, mainly due to customers’ ongoing destocking, customer turnover and bankruptcies. Total margin percentage improved by 0.4% to 10.6%, primarily a result of the increased contribution from the higher-margin Logistics business. Adjusted Profit Attributable to Shareholders decreased 15.9% to US$117 million, excluding gain on remeasurement of contingent consideration payable. Profit attributable to shareholders for Continuing Operations decreased by 26.2% to US$126 million. The Board of Directors has proposed a final dividend of 4 HK cents (2017: 2 HK cents). This brings the full-year total dividend to 7 HK cents per share.

    Spencer Fung, Group CEO of Li & Fung, said: “2018 was a demanding year and we’ve made a fundamental reorganization of our business in line with our Three-Year Plan to build the Supply Chain of the Future. We initiated a structural change with a new management team to focus on our core customers and operational excellence. This includes a new Group President, a new Chief Operating Officer and an entirely new Chief Digital Officer position. We have the right strategy, and now the right structure and people in place. With all three elements in place we have built the right foundation for the future. I am confident that we are on the right track.

    Mr Fung continued, “Group President, Joseph Phi, has a strong track record having organically grown LF Logistics over the past decade. In his new role, Joseph will focus on account management and business development. As a team, we are focused on driving greater productivity in our global production platform by truly leveraging the scale of Li & Fung for our customers, capitalizing on our clear leadership in 3D design, and accelerating the build-out of our end-to-end digital platform. These initiatives are already helping to strengthen relationships with core customers and to convert new customers.”

    The Logistics business continued to grow organically with double-digit increases. With strong demand for in-country logistics services, turnover and COP increased 10.2% and 14.6% to US$1.13 billion and US$86 million respectively. The growth of the Logistics business continued to be driven by strong growth momentum in China; e-logistics growth; accelerating growth in ASEAN across all services; and rapid expansion in the newer geographies of Japan, Korea and India. To further accelerate the pace of its growth, preparation is underway for the potential spin off and separate listing of LF Logistics to take place in 2019 depending on market conditions and other factors.

    In addition, 2018 was a turnaround year for the Onshore Wholesale business in the Americas, Europe and Asia with its turnover increasing by 7.4% to US$1.7 billion with recovery at major US customers and growth in the Asia onshore wholesale business. Furthermore, operating costs as a percentage of turnover improved by 80 basis points.

    Joseph Phi, Group President of Li & Fung, said: “The strong organic growth of LF Logistics is due to active engagement with our people and close collaboration with our customers. At Li & Fung, we are well positioned to integrate logistics with our traditional sourcing and supply chain solutions offering. This provides a faster and more digital supply chain, enabling us to cultivate closer and longer-lasting customer partnerships. We are pursuing market share gain and pipeline conversion as the twin drivers for our growth.”

    Group Chairman, William Fung added, “With ongoing trade uncertainties, we continue to help existing and new customers optimize their production across over 50 countries of export. This provides the best defense against fluctuations in trade policy and mitigates any negative impact from tariff increases. I am confident that our new leadership team and organizational structure will help us drive productivity, strengthen customer relationships and, in turn, grow market share.

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  • Li & Fung appoints Joseph Phi as new group president

    Li & Fung appoints Joseph Phi as new group president

    Li & Fung has appointed Joseph Phi as the company’s Group President. As Group President, Joseph will lead the company’s Supply Chain Solutions operating groups, including Business Development. He will continue as President, LF Logistics and to serve on the Board of Directors of Li & Fung. He will report to Spencer Fung, Group CEO.

    Joseph has a strong track record at tLFhe company having organically grown its logistics business over the past decade. He has nearly 20 years’ experience with the company and is well positioned to assume this important leadership role.

    Joseph joined Li & Fung in 1999 and was previously executive director of Integrated Distribution Services Group Limited from 2004 until its acquisition by Li & Fung in 2011. He is Chairman of GS1 Hong Kong and a Director of its Management Board and is a Member of Supply Chain 50.

    He is an advisory committee member of Hong Kong Trade Development Council’s Logistics Services and honorary advisor of the Asian Logistics and Maritime Conference. He also serves as an advisory committee member of Eye Fund, a charitable institution in HK.

    Joseph graduated magna cum laude from the University of The Philippines (UP) with a Bachelor of Science degree in Industrial Engineering and attained a Master of Business Administration degree with top honors also from the same university.

    He is a 2011 recipient of UP College of Business Administration Distinguished Alumnus Award and 2013 recipient of UP Industrial Engineering Alumni Award and UP Alumni Engineers Global Achievement Award for Logistics. Between 2014 and 2018, he was an Adjunct Professor in the School of Business and Management at The Hong Kong University of Science and Technology.

    Joseph takes over from Marc Compagnon, who served as Group President and Executive Director of Li & Fung Limited from July 2014 and has moved to the Fung Group as Senior Advisor while remaining on the Board of Li & Fung Limited as a Non-Executive Director.

    Fung Group is the major shareholder of Li & Fung, whose core businesses operate across the entire global supply chain for consumer goods including sourcing, logistics, distribution and retail.

    Spencer Fung, CEO of Li & Fung said, “Our goal is to build the supply chain of the future to help our customers navigate the digital economy and to improve the lives of one billion people in the supply chain, and I am confident Joseph is the right person to build on the solid foundation that Marc has built and to take this to the next stage of development.”

  • Fung Group launches Explorium in Hong Kong

    Fung Group launches Explorium in Hong Kong

    Fung group has opened an innovation hub in Hong Kong for co-creating, learning, experimenting and scaling the ideas, opportunities and business models that will shape the future of supply chains. Explorium Hong Kong – taking its name from an earlier project in Shanghai which tested retail technologies – was opened this week with Dr Victor Fung hosting a housewarming party.  Product recognition system using AI technology and developed by Circle K and JD, one of the first prototypes from the partnership between JD’s AI lab and the Fung Retailing Group, was on show along with other technology innovations.

    Among the highlights of the AI tech showcase were:

    ZhuiYi Technology, one of the top AI companies in China has integrated deep learning and NLP to help enterprises improve customer experience and business efficiency.

    WhatsSquare has produced chatbots and digital workspace tailored for SMEs with advanced Software as a Service (SaaS) technology.

    Zhulke Engineering Hong Kong specialises in the design and development of technology in collaboration with corporate partners.

    Virtual Control is an SaaS company that has developed a digital solution to analog processes in modern global supply chains. Its software will pull together a range of digital tools to maximise the impact on efficiency and automation, such as augmented reality, machine learning, photo recognition, and data analytics.

    Beijing MeShow Digital Technology has taken the lead in 3D virtual-human modelling technology. Using MeShow’s mobile app, users can create their 3D model simulating their own face and body, try out types of makeup looks, enjoy virtual fitting services and realise apparel purchase needs concurrently in a single app.

    WildFaces Technology offers a vision-based AI software system that can recognise and track faces anonymously from moving cameras, including on drones, walking robots, PTZ cameras, mobile phones and wearables such as glasses and body-worn cameras. This world-first “on-the-move” recognition technology requires only one low-resolution camera to be able to recognise hundreds of faces in real-time in large uncontrolled crowds and at far distances, replacing at least 50 more high-resolution but fixed cameras from other traditional facial recognition systems.

    Hampen Technology provides deep learning-based biometric authentication and video analytics solutions for fintech, security and retail applications.

    Find Innovation Lab’s Find Retail Suite uses AI and machine learning to offer retailers products that change the way purchasing departments buy merchandise and how the marketing department sells it.

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  • LF Beauty rebrands as MEIYUME

    LF Beauty rebrands as MEIYUME

    LF Beauty, a one-stop shop partner and supplier of products and solutions for the beauty industry announced that it will now operate under the new brand name of MEIYUME. The rebranding comes to represent the evolution of the company and its response to the rapidly-changing beauty landscape and the changing face of today’s consumer.

    The new brand positioning is based on the idea of MEIYUME as the catalyst shaping opportunities and transforming visions into reality with the fusion of MEI (美), Chinese for beauty, and YUME (夢), Japanese for dream.

    As part of the rebrand, MEIYUME’s business has been restructured into three key divisions: Packaging & Turnkey Solutions, Retail Solutions, and Brands.

    The rebrand has also given the company an opportunity to renew focus on its business strategy of Empowering Beauty Solutions. In addition to empowering established brands by providing them with the right products and solutions, it is also about paving the way for new brands to make their mark by collaborating and translating their unique identities into reality.

    “With a new brand and structure, we are best-positioned to connect end consumers and the entire supply chain, and to create value for our customers like no other company in our industry.”said Gerard Raymond, President of MEIYUME.

    Fung Group’s Deputy Group Chairman, William Fung, added: “It is the right time to undergo a full rebrand and really focus on who we are and the value we deliver to our customers.”

    The rebrand comes after the completion of Li & Fung’s strategic divestment of its three product verticals (Furniture, Sweaters and Beauty) in April 2018 to form LH Pegasus, which is 45% owned by Hony Capital and 55% owned by the Fung Group.