Gap, Li & Fung Hike Orders from Philippine

S-based Gap Inc. and Hong Kong-based Li & Fung Group have already placed orders equivalent to about 63% of their annual orders in Philippines as part of the realignment efforts being undertaken by both companies.

Gap Inc. has already placed orders amounting to $250 million. The company’s annual order only amounted to $400 million while the quota system under the MultiFiber Agreement was still in effect over the past several years.

On the other hand, Li & Fung Group has also increased the volume of its orders. Its annual order was pegged at only $100 million during the effectivity of the quota agreement.

Despite the increased orders placed posted a 10% decline in terms of price. 

Wal-Mart  & JC Penney To Boost Indian Sourcing

Wal-Mart is expected to source goods worth $1.2bn from India during 2005. Goods likely to be bought from the country include home textiles, apparel and jewellery. 

The expected amount is a significant increase on last year’s figure, which stood at $300m worth of goods directly sourced from factories and suppliers. Wal-Mart expects this figure to increase to $400m during 2005, with a further $800m worth of products coming from third-party suppliers.

Another US-based retail giant JC Penney has decided to sharply increase sourcing from India. JC Penney is one of the world's largest importers of garments with nearly 1,100 stores all over the US.

The company, which currently buys over $140 million worth of goods from India, hopes to increase it by nearly 30% in the next couple of years following the end of the textile quota regime Dec 31, 2004.

Other major outsourcing markets for JC Penney of India are China, Taiwan, South Korea, Hong Kong and Bangladesh.

Back to Index of March 2005