Home / Knowledge / News / Apparel/Garments / Logistics business at Li & Fung up double-digit in 2018

Logistics business at Li & Fung up double-digit in 2018

Mar '19
Pic: Li & Fung
Pic: Li & Fung
The logistics business at Li & Fung, a leading supply chain solutions partner for brands and retailers, has continued to grow organically in double-digit during fiscal 2018. With strong demand for incountry logistics services, turnover and core operating profit (COP) increased 10.2 per cent and 14.6 per cent to $1.13 billion and $86 million respectively.

The growth of the Logistics business continued to be driven by strong growth momentum in China with e-logistics growth, accelerating growth in ASEAN across all services; and rapid expansion in the newer geographies of Japan, Korea and India. To further accelerate the pace of its growth, preparation is underway for the potential spin off and separate listing of LF Logistics to take place in 2019 depending on market conditions and other factors.

The group turnover decreased 6.2 per cent to $12.7 billion, mainly due to customers’ ongoing destocking, customer turnover and bankruptcies. Total margin percentage improved by 0.4 per cent to 10.6 per cent, primarily a result of the increased contribution from the higher-margin Logistics business.

In 2018, the company was affected by the rapidly changing retail landscape, with record store closures and customer bankruptcies. Owing to the company’s investments in a speed-enabled supply chain, its customers have been able to reduce their inventory levels, although this produced short-term negative impacts on the company’s turnover. The ongoing US-China trade war had a minimal impact on Li & Fung’s business due to the company’s diversified sourcing network outside of China.

"2018 was a demanding year and we’ve made a fundamental reorganization of our business in line with our Three-Year plan to build the Supply Chain of the Future. We initiated a structural change with a new management team to focus on our core customers and operational excellence. This includes a new Group President, a new Chief Operating Officer and an entirely new Chief Digital Officer position. We have the right strategy, and now the right structure and people in place. With all three elements in place we have built the right foundation for the future. I am confident that we are on the right track," Spencer Fung, Group CEO of Li & Fung, said.

"The strong organic growth of LF Logistics is due to active engagement with our people and close collaboration with our customers. At Li & Fung, we are well positioned to integrate logistics with our traditional sourcing and supply chain solutions offering. This provides a faster and more digital supply chain, enabling us to cultivate closer and longer-lasting customer partnerships. We are pursuing market share gain and pipeline conversion as the twin drivers for our growth," Joseph Phi, group president of Li & Fung, said.

"Phi has a strong track record having organically grown LF Logistics over the past decade. In his new role, Joseph will focus on account management and business development. As a team, we are focused on driving greater productivity in our global production platform by truly leveraging the scale of Li & Fung for our customers, capitalizing on our clear leadership in 3D design, and accelerating the build-out of our end-to-end digital platform. These initiatives are already helping to strengthen relationships with core customers and to convert new customers," Fung continued.

"With ongoing trade uncertainties, we continue to help existing and new customers optimize their production across over 50 countries of export. This provides the best defense against fluctuations in trade policy and mitigates any negative impact from tariff increases. I am confident that our new leadership team and organisational structure will help us drive productivity, strengthen customer relationships and, in turn, grow market share," group chairman, William Fung said. (RR)

Fibre2Fashion News Desk – India

Must ReadView All

Pic: Shutterstock

Textiles | On 25th Jun 2021

Half of all cotton-growing regions face severe climate risks by 2040

Climate change could expose half of cotton-growing regions globally...

Pic: Beximco Ltd

Textiles | On 25th Jun 2021

BSEC offers letter of intent to BEXIMCO's Tk 3000-cr Islamic bonds

The Bangladesh Securities and Exchange Commission (BSEC) recently...

Pic: Shutterstock

Textiles | On 25th Jun 2021

Prime Content| Australian cotton production, exports to grow in coming season: TexPro

Australian cotton production and exports are expected to move up...

Interviews View All

Textile Industry, Head honchos

Textile Industry
Head honchos

Next level is to inject new features:

Textile Industry, Head honchos

Textile Industry
Head honchos

Occam's razor principle and purpose-driven innovations

Textile Industry, Head honchos

Textile Industry
Head honchos

Blockchain is not a silver bullet for each and every problem in supply...

Alberto Gotti,

Alberto Gotti

Danitech was born from the will of a group of technicians to offer the...

Emmi Berlin,

Emmi Berlin

With the support of the first investors - Finland's Technical Research...

Simone Morgante,

Simone Morgante

Based out of Como, Italy, and with technological expertise of nearly 70...

Shlomzion Chen, Seevix

Shlomzion Chen

Seevix Material Sciences Ltd, which develops and manufactures synthetic...

Jacques Prigneaux, EDANA

Jacques Prigneaux

EDANA has been the leading global association and voice of the nonwovens...

Andreas Lukas, Andritz Nonwoven

Andreas Lukas
Andritz Nonwoven

With forces in engineering and process development, Andritz Nonwoven...

Sarah Denise Cordery, Sarah Denise Studio

Sarah Denise Cordery
Sarah Denise Studio

Manchester, England-based Sarah Denise Studio provides relevant fashion...

Ramya Rao & Kavea R Chavali, Kalaneca

Ramya Rao & Kavea R Chavali

<div>The journey of Kalaneca (kala-Art, Neca- Nikaah) formally began in...

Seema Gujral, Label Seema Gujral

Seema Gujral
Label Seema Gujral

<b>Seema Gujral</b>'s designs for her eponymous label revolve around...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


Letter To Editor

(Max. 8000 char.)

Search Companies


Leave your Comments

June 2021

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

Advanced Search