Li & Fung planning venture to create Chinese brands

To help the retailers develop their own brands of clothing, Li & Fung Ltd. is planning to form a joint venture with two Chinese department store operators, media reports claim. The apparel brands will be for menswear, womenswear, children’s clothing and home products. This may help Li & Fung, which gets more than 60 per cent of its revenue from the US, make up for some of the Wal-Mart business it recently lost. Supplying Wal-Mart Stores Inc. and to other Li & Fung, will also help source their products, license the brands and manage them. The company said in an e-mail it will have a signing ceremony in Shanghai to announce a partnership with Shanghai Bailian Group Co. and Beijing Wangfujing Department Store Group Co. About 70 percent of department store operators in China are developing their own private labels.