Blog: Economies of scale
Leonie Barrie | 20 August 2003
Speaking at the World Apparel Markets conference in Brussels in 2001 he explained: “In the (near) future, you have 3 choices – get bought by Li & Fung, get as big as Li & Fung or get subsidised by your government so you don’t have to worry about Li & Fung.” His predictions now seem to be taking shape. This week sourcing giant Li & Fung signed a deal to sell its own Levi's-branded tops directly to US retailers, taking it into value added services such as design, marketing and distribution for the jeans giant.
Levi’s might be the first to outsource parts of its supply chain to specialists with faster and more flexible production…but it certainly won’t be the last. Remember you read it here first!
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