Li & Fung has announced a strategic investment of $100 million in JD.com, with newly issued capital (at HK$1.25 per share) to further develop its digital supply chain. The Fung Family will continue to retain control of the company with 60 per cent of the voting shares.
Li & Fung has been on a journey to create the Supply Chain of the Future and the strategic cooperation with JD will accelerate this development with a proven digital partner, the company reports. Li & Fung will also grow its business in China by partnering with JD on private label initiatives for the China domestic market by leveraging its global network and digital supply chain. With the strong partnership between the Fung Family and Singapore-headquartered GLP Pte Ltd., and now the addition of JD, Li & Fung will be able to leverage its scale and digital capabilities to continue its journey of creating the end-to-end digital supply chain.
As China’s leading technology driven e-commerce company, JD is transforming to become the leading supply chain-based technology and service provider, which fits well with Li & Fung’s goal of creating the Supply Chain of the Future. JD has been developing proprietary supply chain technologies for many years and has created digital retail and supply chain platforms that are fully integrated to support its omni channel strategies.