In August 2003, Li & Fung finalized licensing agreement with Levis. under which the former would design, manufacture and market clOthing under the latter's Levi Strauss Signature label. According to company sources, these products would be marketed in the US by late 2004. In early 2004, Li & Fung also signe&similar licensing deals with Official Pillowtex LLC, a US-based company that owned The RoyaF Velvet linen brand. Commenting on these deals, William said, "Leveraging our•.strongcposition in the supply chain, are building a higher-margin business model of licensing well-knówn brand names. This new business model will augment our core sourcing businesyand 5 will be an important growth driver for the group in our next three-year plan for 2005-2007."
By mid 2004, Li & Fung had emerged as the #1 global consumer goods trading company with an extensive network of over 65 offices in 40 countries worldwide, managed by a dedicated employee base of over 6,000. Reportedly, the company faced very little competition, which analysts