Li & Fung has announced a $100 million strategic investment from JD.com to further develop its digital supply chain. The Fang family will continue to control the company with a 60% voting share.
Li & Fung went private in May after 28 years on the Hong Kong Stock Exchange. In doing so, it joins with global logistics warehouse operator and investor Golden Lincoln Holdings (GLP), headquartered in Singapore.
Li & Fung is on a journey to build the supply chain of the future, and strategic partnerships with JD will accelerate this development with a proven digital partner. It will also expand its business in China by partnering with JD in private label initiatives for the local market in China through its global network and digital supply chain.
JD is the Chinese leading technology-driven e-commerce company, is transforming into a leading supply chain-based technology and service provider, which fits well with Li & Fung’s goal of building the supply chain of the future. JD has been developing proprietary supply chain technology for many years and has created digital retail and supply chain platforms that are fully integrated to support its omnichannel strategies.
In the midst of the continuing digital disruption of retail sales and the ongoing global trade tensions associated with the dramatic impact of the Covid-19, global retail supply has become increasingly complex.
With the breadth and depth of global sourcing and production ecosystems, Pan-Asia logistics network, and digital product development expertise, Li & Fung is helping global retailers and brands navigate the ultimate uncertain and ever-changing macro environment.
Mentioning their goals to create the Supply Chain of the Future and to improve the lives of 1 billion people in their global supply chain Spencer Fung, CEO of Li & Fung said, “Our goal is 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.”