LVMH and SF Express to build sustainable supply chain

The luxury conglomerate LVMH Group is teaming up with SF Express, the largest comprehensive express logistics group in China, to launch a sustainable supply chain system.

The announcement was made on July 20th following in-person talks between the long-term collaborators at the SF headquarters last week. Executives from both companies conducted in-depth exchanges on the global supply chain, sustainable development, and the role of technological innovation within these areas.

The partnership between the companies goes back to 2014, when Fendi started working with SF Express. Then in 2019, SF Express and LVMH launched a project to provide brands with premium logistics services, including intra-city express delivery, payment collection, and return of signed orders. SF Express has become the main express service provider for LVMH Group brands, transporting more than 10 million parcels over the past ten years for the luxury giant.

Part of LVMH’s investment in the Chinese market includes a commitment to support the development of local infrastructure. Teaming up with SF Express supports LVMH to delve further into the “sinking market” of China’s Tier-2 and Tier-3 cities, and the new sustainable supply chain will help both companies appeal to Chinese consumers’ rising interest in sustainability.

Product traceability will be key to demonstrating sustainability and maintaining consumers’ trust. These aspects are even more key in luxury, where the high product prices mean shoppers’ expect a premium end-to-end purchasing experience. SF Express has recently seen several cases of luxury goods being damaged or lost en route. One such case aroused widespread concern on social media when the compensation paid to the customer was much lower than the retail value of the lost product.

Doubling down on their cooperation and commitment to sustainability will go some way to amending any damage done to SF Express’ reputation – as well as ensuring LVMH stays well ahead of changing consumer preferences.


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