HK co scripts a passage to India

NEW DELHI: Hong Kong-based Li and Fung is headed for India as it plans to shift its focus from China due to labour cost advantage of the former. It has firmed up plans to double its sourcing of fashion accessories, furnishings, gifts, handicrafts, home products, promotional merchandise, toys, sporting and travel goods from India. The company’s core businesses include export sourcing, distribution and retailing.

Speaking to ET, Li and Fung managing director William Fung said, “China would witness a severe relocation of industries in the near future as the country is going through increase in labour costs. This is where India would be more beneficial for us.” Chinese sourcing, which contributes to around 40% of the company’s global sourcing, would see a gradual decline, Mr Fung predicted.