Although WalMart failed in Hong Kong, it relies on Hong Kong talent for its success. Walmart has been using Li & Fung, a first rate sourcing agent for a lot of goods, like clothes. Li & Fung smartly set up the Walmart biz as a separate division, in case, as it turns out, Walmart changes emphasis.
To handle sourcing for Wal-Mart's U.S. and international operations, Li & Fung set up a separate company, Direct Sourcing Group, and said the unit would employ hundreds of people. The development was seen as part of Wal-Mart's move toward direct sourcing, since the company had an option to acquire Direct Sourcing and take over its supplier relationships in 2016. Wal-Mart at the time said it hoped eventually to use its own staff to source 80% of private-label goods, such as Faded Glory clothing, cutting costs 5% to 15% within five years.
Sure, Li & Fung is taking a bit of a bump, but they are not going under, like so many who work with Walmart do. Well played.
To thrive at the small business level you must compete on design, something Hong Kong is emphasizing right now.
Feel free to forward this by email to three of your friends.
To handle sourcing for Wal-Mart's U.S. and international operations, Li & Fung set up a separate company, Direct Sourcing Group, and said the unit would employ hundreds of people. The development was seen as part of Wal-Mart's move toward direct sourcing, since the company had an option to acquire Direct Sourcing and take over its supplier relationships in 2016. Wal-Mart at the time said it hoped eventually to use its own staff to source 80% of private-label goods, such as Faded Glory clothing, cutting costs 5% to 15% within five years.
Sure, Li & Fung is taking a bit of a bump, but they are not going under, like so many who work with Walmart do. Well played.
To thrive at the small business level you must compete on design, something Hong Kong is emphasizing right now.
Feel free to forward this by email to three of your friends.
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