Li & Fung

Li & Fung Limited is a Hong Kong–based supply chain management company. Established in 1906, the company became publicly traded in 1973 and has since played a significant role in manufacturing apparel, toys, and various consumer goods for major North American and European retailers. Significant growth occurred after its public listing, reaching a peak market capitalization in 2011, but the rise of platforms like Alibaba and Amazon, which directly connect manufacturers with consumers, created an increasingly challenging environment for the company.

In response to challenges, including the US–China trade tensions and the COVID-19 pandemic, Li & Fung announced privatization plans in March 2020 and was subsequently delisted from the Hong Kong Stock Exchange. The move was aimed at expediting the restructuring and technology investments needed to adapt to the changing market.

Founded by Fung Pak-liu and Li To-ming, the company initially engaged in exporting porcelain before diversifying into other products and establishing itself as an exporter from Hong Kong in the 1970s. The company evolved from a traditional broker to offering services from design to logistics.

Throughout the 1990s and 2000s, Li & Fung pursued an aggressive acquisition strategy, significantly expanding its global presence and service offerings. This period of rapid expansion was followed by a strategic focus on core competencies in sourcing, trading, and logistics in the 2010s, in response to the shifting retail landscape and the challenges posed by e-commerce. The establishment of LFX in 2021 marked Li & Fung's continued adaptation to the digital era.

Throughout its history, Li & Fung has navigated through various criticisms and controversies, including labor issues and challenges related to its growth strategy. Notably, the company has engaged in initiatives to improve factory safety standards and working conditions, particularly in the aftermath of incidents in Bangladesh. Amid its strategic development, the company has also faced allegations of non-payment to suppliers. Despite these challenges, Li & Fung remains a key player in the global supply chain management sector, continuously adapting to the ever-changing landscape of global trade and retail.