Hong Kong-based multinational group Li & Fung Limited today announced that as a part of strategic investment made by JD.com in 2020, it is now partnering with JD.com.
The partnership will focus on providing end-to-end digital supply chain management services for JD.com’s private brand initiatives.
Together both aim to create a multi-category collection that includes homeware under the brands ‘Made by JD’ and ‘Best Home’, and also develop a pet product brand ‘Jingmeng’ to capture China’s burgeoning pet care market.
The latest partnership will help leverage the emerging consumer-to-manufacturer (C2M) business model that’s growing rapidly in Mainland China.
Notably, C2M enables manufacturers to significantly lessen the time from design to consumer from the industry average of 40 weeks to as little as 2 weeks – thereby helping deliver high-quality, trend-responsive, products to the consumer.
What else does a consumer need!
Besides, products are tested in multiple SKUs of small quantities through online channels, providing more accurate data analysis of end-consumer preferences so that iterations can be made quickly and inventory can be adjusted in real-time.
Substantiating on the same, Wilson Zhu, Head of C2M initiatives, Li & Fung avers “JD.com can leverage Li & Fung’s 3D product design expertise and supply chain know-how to create and produce these new private label brands.”
It is all about giving customers what they want – and all within their budget and at a faster pace.
Further, Wang Xiaosong, Senior Vice President of JD.com and Head of JD.com’s private brands division said, “Li & Fung’s industry-leading 3D product design capabilities and wide-ranging product category expertise will greatly enhance our ability to create private-label brands that online consumers welcome and trust.”
Wang added “The brand development process will also be informed by insights from our big data analysis.”
Li & Fung is the world’s leading supply chain solutions partner for consumer brands and retailers. It specialises in responsibly managing supply chains of high-volume, time-sensitive goods for leading retailers and brands worldwide, with over 230 offices across key production markets globally.
JD.com is a leading technology-driven e-commerce company and retail infrastructure service provider in China.
