in this Aug 3, 2012 photo, the company logo of Li & Fung is displayed on a glass door at Li Fung Tower where the company is based in an industrial district in Hong Kong. (PHOTO / AGENCIES / CHINADAILY.COM.CN)
Hong Kong-based supply chain giant Li & Fung Ltd has been actively leveraging its production network in more than 50 countries to gain market share, especially in the countries involved in the Belt and Road Initiative, Chief Executive Officer Spencer Fung said on Monday.
According to Fung, the escalating US-China trade spat has limited impact on the group due to its diversified sourcing network worldwide
Having run factories and business in more than 20 BRI countries for decades, the group is moving from a traditional agent to a solution provider, deploying its advantages in linking local governments, businesses and communities.
Fung noted that Pakistan -- a very underutilized nation -- has been building up infrastructure like buildings and highways in the past few years to meet the BRI advance. “It’s actually a very attractive country for the production business,” he said.
Li & Fung has been leading the industry in rethinking the entire global sourcing strategy and diversifying production bases as global sourcing has become very complex and its center has been gradually shifting away from the Chinese mainland, he said.
ALSO READ: Links between Tibet and Nepal boosted
“Our goal is to create the supply chain of the future to help our customers navigate the digital economy and improve the lives of 1 billion people in the supply chain.”
This year, Li & Fung continues to make strides in its three-year plan focusing on speed, innovation and digitalization of the entire supply chain to help customers navigate the digital economy.
“Our vision is to create a fully digital end-to-end supply chain powered by a sophisticated data analytics engine,” Fung said.
The group has invested US$150 million in developing the LF 3D virtual design, which is expected to make a profit by 2021.
The digital supply chain aims to drive new revenue streams for the group and offer efficiency for customers.
According to Fung, the escalating US-China trade spat has limited impact on the group due to its diversified sourcing network worldwide.
“We’re well positioned to help our customers neutralize the impact of trade tariffs,” he said, adding that due to the ongoing trade tensions, many European customers are now turning more to the Chinese market.
READ MORE: SAR ‘creating thriving new look’ for BRI food business
Riding on the wave of e-logistics growth in China, Fung said the company will capitalize on the opportunities offered by the Guangdong-Hong Kong-Macao Greater Bay Area and serve Asia’s new middle class.
He added that the group is preparing to spin off its logistics business, and is waiting for the right time.
