Hongkong Li Feng Group'S Revenue Declining Year By Year To Catch Up With Fast Fashion?

In addition to the traditional fashion shock

And retailers, as well as suppliers who work 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 is that its main customers in Europe and America have reduced the quantity of orders year by year because of the impact of fast fashion brands.

Such as Messi, department store and supermarket giant WAL-MART of the old department stores in the United States have reduced their 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 was the Chinese capital trade established in Guangzhou in 1906, and was 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.

The Nikkei News reported in a report that some customers of Li Feng Group, including WAL-MART supermarket, have been directly seeking contact with manufacturers.

Skipping lef makes them more effective in controlling costs, and is more flexible and autonomous in terms of 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 Group CEO Feng Yujun

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 2018 and 2019, only in the 2017 of the three year plan.

Retailers and retailers still have huge pressure on performance. Compressing stocks and closing stores are 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.

For more information, please pay attention to the world clothing shoe and hat net information report.