Chinese e-commerce giant JD has invested US$100 million in Li & Fung via newly issued capital as a move to further develop its digital supply chain.
The move is expected to assist Li & Fung expand its own business within the Chinese mainland via private-label initiatives, using the JD relationship and its partnership with Singapore-based logistics solutions provider GLP to further develop its end-to-end digital supply chain. JD’s own proprietary supply-chain technologies have already contributed to fully integrated digital retail and supply-chain platforms designed to serve its omnichannel strategies.
“Amidst the continuing digital disruption to retail and the ongoing global trade tensions, compounded by the dramatic impact of Covid-19, the global retail supply chain has become more and more complex,” read a statement by the firm. “With the breadth and depth of its global sourcing and production ecosystem, pan-Asia logistics network, and industry leading digital product development capabilities, Li & Fung is helping global retailers and brands navigate a highly uncertain and ever-changing macro environment.”
“Our goal to create the supply chain of the future and to improve the lives of 1 billion people in our global supply chain remains more relevant than ever in this turbulent world,” said Li & Fung CEO Spencer Fung. “The partnership with GLP and the addition of JD will be instrumental in further strengthening Li & Fung.”
The firm will remain under the control of the Fung family who are retaining 60 per cent of voting shares.
