Li & Fung, which released earnings numbers this week showing falling profits, stated in its earnings call that China has enduring importance as a sourcing destination. The country is key for retailers and importers.
“China continues to be number one,” LF president and CEO Bruce Rockowitz said, announcing the company’s earnings. “A lot of people talk about the end of China; it’s not true. China is the key country for a company that is an importer or retailer.”
Much ink has been spilled over the impact of higher labor costs in China, which have been rising at double-digit rate for over a decade. Rockowitz said that many companies are mitigating those costs by moving to the interior of the country, where wages are lower. Companies are also working with more mechanized factories that use manpower more efficiently.
Resource URL: https://www.sourcingjournalonline.com/li-fung-pushes-china-as-key-sourcing-destination/
“China continues to be number one,” LF president and CEO Bruce Rockowitz said, announcing the company’s earnings. “A lot of people talk about the end of China; it’s not true. China is the key country for a company that is an importer or retailer.”
Much ink has been spilled over the impact of higher labor costs in China, which have been rising at double-digit rate for over a decade. Rockowitz said that many companies are mitigating those costs by moving to the interior of the country, where wages are lower. Companies are also working with more mechanized factories that use manpower more efficiently.
Resource URL: https://www.sourcingjournalonline.com/li-fung-pushes-china-as-key-sourcing-destination/
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