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China : Li & Fung to go South Asia due to inflationary pressures |
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2006-8-30
World’s largest trade sourcing company Li & Fung is planning to set facilities in south Asia due to inflationary pressures in China.
Prices of Chinese raw materials have been raised after many years of deflation as a result company received 90 percent of its business from prices paid by the US and EU retailers, in March.
Li & Fung, having raw-material sourcing operations in over 40 countries, is purchasing from India, Sri Lanka, Bangladesh and Pakistan which reported increase of almost 40 percent.
Company has shifted its operations from China and as a result is enabled to provide lower price products to its client.
Li & Fung is planning to move from ‘soft goods’ like textile and others which account for 70 percent of total turnover to ‘hard goods’ such as toys and footwear.
Company has set the revenue target of US $10 billion by 2007, informed William Fung, Managing Director, Li & Fung.
Fibre2fashion News Desk - China
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