Walmart’s recent move to source directly from the vendors rather than through intermediaries has made Li & Fung to explore newer opportunities to offset the projected revenue loss by acquiring 20% stake in two department stores – Beijing Wangfujing Department Store Group Co. Ltd. and Shanghai Bailian, in China. A joint venture company BaiFuLi Co. Ltd. has been formed to set up as many as 300 stores, and is developing its own private labels.
William Fung, Group Chairman of Li & Fung said, “Through this strategic partnership, Li & Fung is able to extend the global supply chain into a substantial retail network that serves a large and growing middle class in China.” The venture aims to develop between one and three private labels and up to six licensed brands over a threeyear period. This could see the venture opening up to 300 stores and pulling in up to US $ 161 million in sales.
Back in Bangladesh, many garment exporters are keenly looking at developing China as their potential market and indeed it can turn out to be a great opportunity for them as having its own office in Dhaka, Li & Fung would surely get these brands to Bangladesh for sourcing garments at competitive prices which back in China is getting tougher.
Bharat Tex Special Report 2026 
