[drop_caps]L[/drop_caps]i & Fung’s client list reads like a phonebook of discount stores in Omaha, Nebraska. The Hong Kong based enterprise helps Wal-Mart, Sears, Macy’s and Kohl’s bring $7.99 sweatshirts to Americans. [1. When asked about Li & Fung, Cathy Feingold the director of international affairs for the A.F.L.-C.I.O. referred to them as “the sherpa showing companies the fastest route down that slope.” The slope was of course a race to the bottom.] Since 1906 Li & Fung has acted as a middleman between cheap Asian labor and the developed world. The company began by bringing Chinese toys to the shores of America and now handles all aspects of supply chain management. The New York Times called them the, “most important company that most American shoppers have never heard of.” My guess is that they like it that way. Li & Fung revolutionized modern commerce by connecting over 15,000 suppliers in 60 countries and has 8,000 words less in their Wikipedia page than Gangnam Style [2. Li & Fung clocks in at about 1,000 while Gangnam style almost hits 9,000.]
Li & Fung handles over 2 billion items and doesn’t own a single factory. Their network is the company’s sole value. They can find you a factory to make 10,000 custom socks in a week. They can make sure the crate gets on a boat without hassle. Hell, they can probably get you a toe by 3:00 this afternoon. With nail polish. In 2012 the company utilized their network to generate over $20 billion in revenue. To put that in perspective, if Li & Fung were an African country they’d be nestled right between Mozambique and Namibia in terms of GDP.
It also has a businesses model that climate change will turn obsolete.