Li & Fung Limited has launched a new company – LFX – recently to capitalise on new digital opportunities transforming the retail industry and enabling supply chain sustainability.
The launch has come in the wake of the rapid evolution of the retail industry,which is shaped by digital technologies and complex consumer demands.
LFX will launch and operate digital ventures delivering solutions directly to brands, retailers, e-commerce companies, C2M (consumer-to-manufacturer) players, as well as manufacturers.
The new company’s business model is focused on being an incubation, investment and operating platform providing digital solutions and digitally-enabled services across the end-to-end consumer goods supply chain.
The solutions provided by LFX cover all aspects of the value chain, encompassing trade, information and fund flows.
Its initial ventures will focus on 3D digital product development and supply chain fintech. Additionally, a venture capital arm has been formed to identify and invest in technologies that transform global retailing, supply chain and logistics.
As an offshoot of Li & Fung, LFX brings knowledge, hands-on experience spanning 100+ years, and relationships across the global supply chain. LFX has the unique ability and insights to identify and bring to market digital technologies that will have an immediate impact today.
Spencer Fung, Group Executive Chairman, Li & Fung and LFX, commented, “We have established LFX as a separate company to build on Li & Fung’s supply chain knowledge to bring new ways of thinking and revolutionise how we create, make and sell products. Sustainable consumption starts with supply chain digitalisation and LFX is forming an ecosystem that connects the innovations, people and companies committed to accelerating digitalisation and transforming the retail industry.”
“Roughly 40 million tonnes of textile waste goes to landfill every year, and it is estimated that just 60 per cent of garments were sold at full price. Sustainable consumption requires behavioural shifts, and it starts with the supply chain. Our goal at LFX is to reduce the environmental impact of our industry and promote sustainable consumption. We believe that by merging real world industry experience with new ideas that entrepreneurs and technologists bring, we get practical innovations the industry will embrace,” said Ed Lam, Chief Executive Officer, LFX who brings over 25 years of strategic, financial and commercial experience with deep supply chain knowledge and insights to lead the new company.