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Creating the supply chain of the future
Spencer Fung, CEO, Li & Fung
Phil Wahba, Senior Retail Writer, Fortune Magazine
NRF The Big Show I 2018 Spencer Fung
01
Global sourcing & logistics services to 8,000
retailers in 100+ countries from 15,000
vendors in 60+ countries
Global branded fashion accessories,
footwear, and apparel company with
350+ licensed or controlled brands
Retail over a dozen brands with
3500+ points of sale in Greater
China an Southeast Asia
Leadership development in cooperation
with leading global academic institutions
Investment in retail and supply
chain technology companies
Global retail, distribution, supply
chain, and technology research
www.funggroup.com
NRF The Big Show I 2018 Spencer Fung
02
Li & Fung Global Network
THE AMERICAS
Brazil
Chile
Dominican Republic
Guatemala
Honduras
Mexico
Nicaragua
Peru
USA
Bulgaria
France
Germany
Italy
Jordan
Lithuania
Netherlands
Portugal
Romania
Spain
Turkey
UK
EUROPE
Egypt
Madagascar
Mauritius
Morocco
South Africa
AFRICA
Over 250 offices and DCs in more than 40 economies with some 22,000 employees
Trading
Logistics
Hong Kong Headquarters
NRF The Big Show I 2018 Spencer Fung
03
End-to-End Supply Chain Solutions
NRF The Big Show I 2018 Spencer Fung
04
Three-Year Plan Goal (2017 – 2019)
Our goal is to create 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.
NRF The Big Show I 2018 Spencer Fung
05
Three-Year Plan Core Themes
Speed Innovation Digitalization
NRF The Big Show I 2018 Spencer Fung
06
NRF The Big Show I 2018 Spencer Fung
Virtual Design – Simulate Draping
08
NRF The Big Show I 2018 Spencer Fung
Virtual Design – Check Tension and Fit
09
NRF The Big Show I 2018 Spencer Fung
Virtual Design – Define Material
10
NRF The Big Show I 2018 Spencer Fung
Virtual Design – Change Patterns, Placement & Direction
11
NRF The Big Show I 2018 Spencer Fung
Virtual Design – Change Colorways
12
NRF The Big Show I 2018 Spencer Fung
Virtual Design – Define Print & Pattern
13
NRF The Big Show I 2018 Spencer Fung
Digital Store
14
NRF The Big Show I 2018 Spencer Fung
Digital Store
15
NRF The Big Show I 2018 Spencer Fung
17
Betabrand (example)
• Improved consumer engagement through design process
• 3 products completed funding with orders totaling $500k
NRF The Big Show I 2018 Spencer Fung
18
Betabrand (example)
• Gilda Bag was 1000%+ crowdfunded, extremely successful launch
• All digital samples, no physical
NRF The Big Show I 2018 Spencer Fung
19
Betabrand (example)
Brand X
15%
Adoption
10
months Inventory
20%
Mark-
down
70%
Adoption
5.5
months
Crowd-
funded
94%
Sell thru
Adoption
per
Crowdfund
2.5
months
Crowd-
funded
94%+
Sell thru
Traditional
Model
Now
Future
LF Ecosystem
We will expand the LF Ecosystem using our convening power with access to US$2T+ of retail
sales to bring together diverse players in the global supply chain and beyond.
NRF The Big Show I 2018 Spencer Fung
20
NRF The Big Show I 2018 Spencer Fung
21

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Creating the supply chain of the future

  • 1. Creating the supply chain of the future Spencer Fung, CEO, Li & Fung Phil Wahba, Senior Retail Writer, Fortune Magazine
  • 2. NRF The Big Show I 2018 Spencer Fung 01
  • 3. Global sourcing & logistics services to 8,000 retailers in 100+ countries from 15,000 vendors in 60+ countries Global branded fashion accessories, footwear, and apparel company with 350+ licensed or controlled brands Retail over a dozen brands with 3500+ points of sale in Greater China an Southeast Asia Leadership development in cooperation with leading global academic institutions Investment in retail and supply chain technology companies Global retail, distribution, supply chain, and technology research www.funggroup.com NRF The Big Show I 2018 Spencer Fung 02
  • 4. Li & Fung Global Network THE AMERICAS Brazil Chile Dominican Republic Guatemala Honduras Mexico Nicaragua Peru USA Bulgaria France Germany Italy Jordan Lithuania Netherlands Portugal Romania Spain Turkey UK EUROPE Egypt Madagascar Mauritius Morocco South Africa AFRICA Over 250 offices and DCs in more than 40 economies with some 22,000 employees Trading Logistics Hong Kong Headquarters NRF The Big Show I 2018 Spencer Fung 03
  • 5. End-to-End Supply Chain Solutions NRF The Big Show I 2018 Spencer Fung 04
  • 6. Three-Year Plan Goal (2017 – 2019) Our goal is to create 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. NRF The Big Show I 2018 Spencer Fung 05
  • 7. Three-Year Plan Core Themes Speed Innovation Digitalization NRF The Big Show I 2018 Spencer Fung 06
  • 8. NRF The Big Show I 2018 Spencer Fung Virtual Design – Simulate Draping 08
  • 9. NRF The Big Show I 2018 Spencer Fung Virtual Design – Check Tension and Fit 09
  • 10. NRF The Big Show I 2018 Spencer Fung Virtual Design – Define Material 10
  • 11. NRF The Big Show I 2018 Spencer Fung Virtual Design – Change Patterns, Placement & Direction 11
  • 12. NRF The Big Show I 2018 Spencer Fung Virtual Design – Change Colorways 12
  • 13. NRF The Big Show I 2018 Spencer Fung Virtual Design – Define Print & Pattern 13
  • 14. NRF The Big Show I 2018 Spencer Fung Digital Store 14
  • 15. NRF The Big Show I 2018 Spencer Fung Digital Store 15
  • 16. NRF The Big Show I 2018 Spencer Fung 17 Betabrand (example) • Improved consumer engagement through design process • 3 products completed funding with orders totaling $500k
  • 17. NRF The Big Show I 2018 Spencer Fung 18 Betabrand (example) • Gilda Bag was 1000%+ crowdfunded, extremely successful launch • All digital samples, no physical
  • 18. NRF The Big Show I 2018 Spencer Fung 19 Betabrand (example) Brand X 15% Adoption 10 months Inventory 20% Mark- down 70% Adoption 5.5 months Crowd- funded 94% Sell thru Adoption per Crowdfund 2.5 months Crowd- funded 94%+ Sell thru Traditional Model Now Future
  • 19. LF Ecosystem We will expand the LF Ecosystem using our convening power with access to US$2T+ of retail sales to bring together diverse players in the global supply chain and beyond. NRF The Big Show I 2018 Spencer Fung 20
  • 20. NRF The Big Show I 2018 Spencer Fung 21