Li Feng Wants To Catch Up With Fast Fashion Brands.

Suffer

In addition to the tradition of shock

Brands and retailers, as well as suppliers to cooperate with them, such as Hongkong Lifeng group.

In recent years, the revenue of Hongkong Lifeng group has been decreasing year by year.

In the 2016 fiscal year that just announced its performance recently, Li Feng Group's turnover declined by 11% in the financial year, and its profit fell by 10.4%.

The main reason for this situation is that its main customers in Europe and the United States have been reducing the order volume year by year due to the impact of fast fashion brands.

Like Messi, department store and supermarket giant of old department stores in America.

All these considerations reduced the trade with Li Feng Group.

Instead of buying clothing products in great quantities through Li Feng in every season, they now prefer to control inventory to get greater flexibility in competition with fast fashion brands in the two quarter or even one season.

The predecessor of Li Feng group was founded in Guangzhou in 1906 and is the first Chinese exporter to export to China.

After several years of development, its company has many subsidiaries in different fields, but its core business is consumer product design, development, procurement and logistics.

In the past long time, Li Feng Group has provided the supply chain services to many retailers and brands around the world by virtue of its rich resources in the Asian market and upstream and downstream industry chain relationships.

This supply chain service is rather slow in addition to the popularity of fast fashion brands.

In the Internet era, the information pparency is fast and the flow is fast.

According to the world clothing and shoe net, some customers of Li Feng Group, including WAL-MART supermarket, have been directly seeking contact with manufacturers.

Skipping Leafon has made them more effective in controlling costs and more flexibility and autonomy in the whole supply chain management.

Or it can be said that today's Li Feng Group is hard to provide an irreplaceable service for its former customers.

"We want to create the future supply chain."

Li Feng Group CEO Feng Yujun (Spencer Fung) released the group's strategy in the next three years.

Under such circumstances, Li Feng had to start looking for new changes.

This sentence can also be seen on the official website of Li Feng as a group strategic slogan.

Li Feng has also made an implementation plan for this goal.

Specifically, the three year plan has three dimensions.

The first is speed. In view of the fact that most of them need to compete with fast fashion, it will become the key point to break through.

According to the plan announced by Li Feng, the group will reduce the total time from product planning, development to production and pportation to 21 weeks by 2019.

At present, this figure is 40 weeks.

In addition, Li Feng has listed innovation and digitalization as two other central points.

However, it does not give more specific figures and practical methods. It only hopes that we can provide a new supply chain management mode and train of thought for customers and suppliers through the innovation mode and the guidance of big data.

The entire three year plan is expected to cost $150 million.

"The next three years will be the most exciting time," Feng Yujun said in a statement. "We are walking on the road of supply chain digitalization, which will help us build an ecosystem with benefits to stakeholders.

We are confident that this will enable us to succeed in business in the long run, and that we will maintain the position of global supply chain leaders. "

Sounds like Li Feng's confidence.

But the potential threat can not be ignored.

On the one hand, the global retail market is still unstable.

Not to mention that in 2018 and 2019, only 2017, which opened the three year plan, many retail brands and retailers still had great pressure on performance. Squeezing stocks and closing stores were common market behaviors.

On the other hand, the uncertainty of global politics also makes it easier for Li Feng, a multinational supplier, to face greater international trade risks.

More interesting reports, please pay attention to the world clothing shoes and hats net.