Major Player in GarmentTradingWorldwide.
Established in Gaungzhou in Southern China in 1906.(silk &
porcelain main business)
In 2000’s diversified into : health, beauty & cosmetics.
Had 80 buying offices in 40 different Countries by 2008.
Acquisitions based on incentives based policy.
Has a Customer- centric organizational structure.
Each team handled business worth US $ 20- 50 million.
Its structure & incentive system enabled it to grow in size without
2007: total turnover-US $11.854 billion.
Contribution : US – 65% & Europe 26%.
Reformation done in 3 phases :
Phase1-1970: transformation into regional sourcing
Phase 2 -1980:Transformation into more customer centric
Phase 3-1990: transformation into Dispersed
In 2008, largest exporter of Garments fromTurkey.
Incshape Buying Services.
Silvereed Group;Wilson& WongTrading Co. Ltd.
Imagine and CGroup.
Li & Fung USA focus on: ONSHORE BUSINESS
Yielded higher profit margins.
US $100 million reserves for new acquisitions in Europe.
Exhibit 1: decline in EPS from 11.5 to 8.9 US
cents in and also decline in DPS from 9.2 to
7.3 US cents in 2008.
SUPPLYCHAIN VALUE ADDED ACTIVITIES
MATERIAL SOURCING EXTENSIVE NETWORK
MANUFACTURING TESTING SUPPORT
SHIPPING CONSOLIDATIONOF GOODS
In the year 2009, US went through an economic
What could LI & Fung do to safeguard the
growth of its Business ?
How could it achieve its target turnover of
US$ 20 billion b/w 2008-2010.
Balance trading; less US concentrated.
Leveraging its supplier relationship into
performing sound trade overseas.
Avoid cases like KB toys.
Sticking to diversification; health, beauty and