Challenges in Global Textile and Apparel Sourcing - Focus on Li and Fung

Released on = June 1, 2007, 10:45 pm

Press Release Author = Bharat Book Bureau

Industry = Marketing

Press Release Summary = Hong Kong-based Li & Fung is regarded as the market leader
in sourcing consumer goods. Its customer base comprises the leading retailers in 100
markets across all continents.

Press Release Body = Challenges in Global Textile and Apparel Sourcing: Focus on Li
& Fung

Hong Kong-based Li & Fung is regarded as the market leader in sourcing consumer
goods. Its customer base comprises the leading retailers in 100 markets across all
continents. It has a 100-year tradition as a trading company, and has gone through
different strategic phases over time. Today, it has established a highly successful
business model which turns the challenges of a complex and fast changing environment
into opportunities. One measure of the company's success is the growth in its sales
and profits. Between 1992 and 2005 its sales increased at a compound annual growth
rate of 22% per annum while its net profits rose by an annual 23%.

Li & Fung's main strategic advantage is its ability to manage a large network of
vendors and suppliers across traditional and newly upcoming sourcing markets in a
way which creates significant efficiencies for the benefit of its customers. The
company manages the flow of raw material and finished goods through a process which
it calls "borderless manufacturing". This concept enables Li & Fung to meet the
requirements of its customers in terms of quality, cost price, product development
and speed to market.

Li & Fung sources about 46% of its apparel and hard goods from China. In apparel
alone, however, Li & Fung's sourcing base is more diversified. In fact South-East
Asia and Bangladesh are as important as China for Li & Fung when sourcing apparel.
Furthermore, rising costs are likely to make China even less important in the
future.


For more information, Please visit : http://www.bharatbook.com/detail.asp?id

Web Site = www.bharatbook.com

Contact Details = 207, Hermes Atrium,
Sector 11, Plot No.57
CBD Belapur

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