Luen Thai Holdings History

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The Company Description of Its Time

Luen Thai Holdings Limited of Hong Kong, together with its subsidiaries, files itself as one of the leading apparel manufacturing and supply chain services providers worldwide. It has close partnership with brands and retailers globally, which include Polo Ralph Lauren, Dillard's, Limited Brands, adidas and Fast Retailing among others. They produce more than 70 million pieces of garments annually, with products ranging from casual wear, ladies' wear - intimate, career and fashion wear, described here in category terms - sports and activewear, pants, sweaters, outerwear, denimwear and children's wear. Headquartered in Hong Kong, Luen Thai has production and outsourcing partner facilities in China, the Philippines, Indonesia, India and Bangladesh; sales, design and logistics offices in Asia Pacific, the United States and Europe; and over 20,000 employees worldwide. Its beginnings are dated in the filing's summary: from a humble beginning as a manufacturing company in 1983, its services now include the front and back end of the supply chain, and in July 2004 Luen Thai listed on the Stock Exchange of Hong Kong.

Supply Chain City and the Hybrid Model

Unlike traditional apparel manufacturers focusing mostly on production, Luen Thai offers a hybrid model of multi-product manufacturing and outsourcing. First of its kind in the industry, the filing says, Luen Thai set up its first Supply Chain City in Dongguan, People's Republic of China, with dedicated development centers allowing customers to work with their team in all phases of the supply chain process. The vision statement matches the model: to be recognised by their customers as the best apparel supply chain services partner in the world, with a corporate culture in which the customer is the centre of all business activities. Along with their customers, Luen Thai states its commitment to compliance with corporate social responsibility and to complying with all laws and regulations.

The capability was assembled by acquisition and joint venture, and the filing dates each piece. Since 2002 Luen Thai embarked on a string of selective acquisitions to build its multi-product capability: in 2002 and 2004 it acquired Glynn and Jacquelyn Manson (GJM) and Tomwell Limited - GJM the sleepwear division of New York-based Warnaco Group Inc. whose major clients include Victoria's Secret and Calvin Klein, and Tomwell previously owned by Kasper Limited, a ladies' suits and career wear company. In 2004 Luen Thai and Yue Yuen, described as the world's largest footwear manufacturer, sealed a joint venture for the activewear market, establishing Yuen Thai Industrial Company Limited. In 2005 Luen Thai acquired more than 50 percent of the Tien-Hu Group, a Hong Kong company in the trade and manufacturing of sweaters, and in 2006 it acquired 50 percent of TMS, a design and trading company that boosted its design capability and European presence; 2006 also marked the joint venture with Guangdong Foreign Trade Group that created Shenzhen Guangthai International (GTI) for denim, outerwear, children's wear and pants. In August 2008, Luen Thai and Desk Top Bags formed a partnership broadening categories into laptop bags, handbags and backpacks.

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