Sourcing giant Li & Fung is building on its supply chain knowledge to launch a new and separate company called LFX, which will incubate, invest, and operate digital ventures focused on driving sustainable consumption.
LFX’s business model will provide digital solutions and services across the end-to-end consumer goods supply chain, delivering direct to brands, retailers, e-commerce companies, C2M (consumer-to-manufacturer) players, as well as manufacturers.
It will also go beyond sourcing and cover all aspects of the value chain, encompassing trade, information, and fund flows.
Initial ventures will focus on 3D digital product development and supply chain fintech. Additionally, a venture capital arm has been formed to identify and invest in technologies that transform global retailing, supply chain and logistics.
As an offshoot of Li & Fung, LFX can tap into knowledge, experience and relationships across the global supply chain to identify technologies that will have an immediate impact both now and in the future.
Spencer Fung, group executive chairman of Li & Fung and LFX, says the new company will “bring new ways of thinking and revolutionise how we create, make and sell products.
“Sustainable consumption starts with supply chain digitalisation and LFX is forming an ecosystem that connects the innovations, people and companies committed to accelerating digitalization and transforming the retail industry.”
Ed Lam, CFO and executive committee member of Li & Fung, has been named CEO of LFX. He brings over 25 years of strategic, financial, and commercial experience with deep supply chain knowledge and insights to lead the new company.
“Roughly 40 million tons of textile waste goes to landfill every year, and it is estimated that just 60% of garments were sold at full price,” he says. “Sustainable consumption requires behavioural shifts, and it starts with the supply chain. Our goal at LFX is to reduce the environmental impact of our industry and promote sustainable consumption.
“We believe that by merging real world industry experience with new ideas that entrepreneurs and technologists bring, we get practical innovations the industry will embrace.”
LFX is building an ecosystem of entrepreneurs, technologists, and partners to deliver on its vision, which comes at a time when the retail industry is being shaped by digital technologies and complex consumer demands.