New export licence good news for overseas customers, says Li & Fung's William Fung

It's exciting news for the Hong Kong-based Li & Fung, which previously had to rely on a China partner to export. Under the new licence, Li & Fung can export China-sourced goods direct to its overseas customers, and import raw materials for manufacturer on the mainland.

Group managing director William Fung said the licence would remove many of the trading restrictions in the mainland, allowing the company to increase competitiveness and reach a larger share of the global market.

"With the ability to directly export products from China to our customers worldwide, Li & Fung is now able to offer an even more complete supply chain service," said Mr Fung.

Mr Fung added: "The Group is well-positioned in China with 16 offices throughout the mainland. It is also the Group's largest market where our annual sourcing volume exceeds US$2 billion."

Levi's and Royal Velvet deal signals new focus for Li & Fung

The Group recently signed licence agreements that allow it to produce products under the Levi Strauss Signature and Official Pillowtex's Royal Velvet brands. Under the agreement, the Group will design, manufacture and distribute home textile and decor products worldwide under the Royal Velvet trademark.

Mr Fung said the Group "sees good prospects ahead for this new line of business" with lower mass volumes and higher margins.

Li & Fung Group is a world leader in the trade of consumer goods including garments, fashion accessories, toys and promotional merchandise. These goods are sourced through a network of offices in 40 countries and territories for customers in the US, Europe and the southern hemisphere.

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