According to reports in Chinese local media, JD Group and Li & Fung Group announced to reach a strategic investment agreement.
Under the agreement, JD will invest USD100 million in Li & Fung. Meanwhile, the two parties will implement long-term in-depth cooperation in businesses like digital supply chain and owned brand.
It is said that Hong Kong Li & Fung Group was originated in Guangzhou and it is one of the oldest export trading companies in Hong Kong. The company provides supply chain management services to global brands and retailers.
Commenting on the cooperation, JD said that it is an important step for JD Group's supply chain, owned brand and international distribution. In the future, they could combine Li & Fung's global supply chain network with JD's mature supply chain system and digital abilities in China to realize advantageous resource sharing, jointly provide global digital supply chain services, and implement JD's integrated open platform strategy.
At the same time, Li & Fung has leading owned brand establishment ability, which could improve JD's layout and brand resource reserve in the fashion home category, so as to help JD create international owned brands.