Hong Kong-based Li & Fung, one of the world’s leading consumer goods design, development, sourcing and logistics has entered into agreements for a new supply chain relationship with PVH Corp. The agreements transform the current non-exclusive buying agency agreement between them into a new strategic partnership under which Li & Fung will provide additional value-added services to PVH. The new agreement will lead to cessation of existing non-exclusive buying agency agreement between them. The transaction is expected to close on July 1, 2017.
The new supply chain relationship is expected to be mutually beneficial and focus on applying latest technology and knowhow into the PVH supply chain. And as Daniel Grieder, CEO Tommy Hilfiger Global and PVH Europe said the focus of his company was to create a more effective and efficient supply chain that would enable them to adapt and evolve so that it could stay ahead in the rapidly changing industry. This transformation in the company’s sourcing strategy is an important step to improve speed to market and faster integration of consumer insights into our new collections.
US-based PVH Corp has a diversified portfolio of brands including Calvin Klein, Tommy Hilfiger, Van Heusen, IZOD, ARROW, Speedo, Warner's and Olga and numerous other owned and licensed brands and markets them globally. PVH has 30,000 associates operating across 40 countries and speaking 20 languages. In 2015, the company generated over $8 billion in revenues.