With tech-savvy United States consumers demanding the latest features quickly, companies may need to shift final assembly to United States factories, according to Victor Fung, group chairman of Hong Kong-based Fung Group, speaking at The Wall Street Journal CEO Council in Tokyo on Tuesday.
The Journal’s Mayumi Negishi quotes him as saying, “There’s a revolution going on, driven by consumers.” Manufactures no longer have 10 months from design to delivery but rather weeks or days. “That’s what’s going to drive change, not a group of politicians,” Fung said.
He added that although final assembly may shift locally, components may continue to be sourced globally.
The Fung Group, Negishi explains, serves as a conduit between Western retailers and China’s factories—a business model that’s “…now under siege as retailers work directly with their suppliers and the rise of online retailers undercuts the middleman.” She writes, “The group is now betting big on information technology to create a digital supply chain to help clients better compete against online retailers.”
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