Li & Fung reveals first private-label brands created for JD
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Li & Fung Limited, the world’s leading supply chain solutions partner for consumer brands and retailers, today announced that as part of a strategic investment made by JD.com in 2020, it is partnering with JD.com to provide end-to-end digital supply chain management services for JD.com’s private brand initiatives.
Together, they are creating a multi-category collection that includes homeware under the brands “Made by JD” and “Best Home”, and developing a pet product brand called “Jingmeng” (“Cute Pet”) to capture China’s burgeoning pet care market.
Building on JD.com’s investment and strategic digital supply chain partnership with Li & Fung, focusing on private brands, the joint venture’s newest initiative will leverage the emerging C2M (consumer-to-manufacturer) business model that is rapidly gaining momentum in Mainland China.
C2M enables manufacturers to dramatically shorten the time from design to consumer from the industry average of 40 weeks to as little as two weeks, delivering high-quality, trend-responsive, products to the consumer. Products are tested in multiple SKUs of small quantities through e-commerce channels, providing more accurate data analysis of end-consumer preferences so that iterations can be made quickly and inventory can be adjusted in real-time.
“JD.com can leverage Li & Fung’s 3D product design expertise and supply chain know-how to create and produce these new private label brands,” said Mr Wilson Zhu, newly-appointed head of C2M initiatives at Li & Fung.
“By continuing to leverage the respective strengths of both companies we will deliver precisely what consumers are looking for – within their budget and at a much faster speed – through better forecasting, smarter production and maximum supply chain efficiency.”
Mr Wang Xiaosong, Senior Vice President of JD.com and Head of JD.com’s private brands division said, “Li & Fung’s industry-leading 3D product design capabilities and wide-ranging product category expertise will greatly enhance our ability to create private-label brands that online consumers welcome and trust. The brand development process will also be informed by insights from our big data analysis”.
Questions & Answers
Q.Which specific private-label brands have Li & Fung created for JD.com so far?
Which specific private-label brands have Li & Fung created for JD.com so far?
Li & Fung has created homeware brands called “Made by JD” and “Best Home”. They are also developing a pet product brand named “Jingmeng” for JD.com.
Q.What is the primary benefit of the C2M business model being used by this joint venture?
What is the primary benefit of the C2M business model being used by this joint venture?
The C2M model significantly shortens the time from product design to consumer. It can reduce the industry average of 40 weeks to as little as two weeks, delivering trend-responsive products quickly.
Q.How will JD.com's existing data capabilities contribute to the development of these new private-label brands?
How will JD.com's existing data capabilities contribute to the development of these new private-label brands?
Insights from JD.com's big data analysis will inform the brand development process. This allows for more accurate analysis of end-consumer preferences, helping to adjust inventory and product iterations in real-time.