Li & Fung

The story of Li & Fung is a remarkable journey that mirrors the economic transformation of Hong Kong and the evolution of global trade itself. What began in 1906 in Guangzhou as a modest trading partnership between Fung Pak-liu, an English teacher, and Li To-ming, a local merchant, has grown into a global powerhouse in supply chain management. Initially focused on exporting porcelain, silk, and handicrafts from China to the West, the company was the first Chinese-owned export trading company in the country. In 1937, as geopolitical tides shifted, the founders astutely moved their operations to the British colony of Hong Kong, a decision that would prove pivotal to their future success. This move positioned them at the heart of what would become one of the world's most vibrant manufacturing and trading hubs.

The post-war years and the subsequent industrial boom in Hong Kong propelled Li & Fung's growth. The second generation of the Fung family, and later the third generation, led by brothers Victor and William Fung, transformed the company from a traditional trading agent into a sophisticated supply chain orchestrator. They recognized that simply connecting buyers and sellers was no longer enough. Instead, they pioneered the concept of 'dispersed manufacturing,' breaking down the production process and sourcing components and labor from a vast network of suppliers across Asia and beyond. This innovative approach allowed them to offer a 'total value-added package' to their clients, managing everything from product design and development to raw material sourcing, production planning, quality assurance, and logistics. This strategic shift was instrumental in their ability to serve some of the world's largest retailers and brands, helping them navigate the complexities of global sourcing and respond to fast-changing consumer demands. In recent years, facing the disruptive forces of e-commerce and the digital economy, Li & Fung has embarked on another transformative journey, investing heavily in digitalization to create the 'Supply Chain of the Future,' ensuring its legacy of innovation continues for another century.