Established in 1906, the company became publicly traded in 1973 and has since played a significant role in manufacturing apparel, toys, and various consumer goods for major North American and European retailers.

Significant growth occurred after its public listing, reaching a peak market capitalization in 2011,[2][3] but the rise of platforms like Alibaba and Amazon, which directly connect manufacturers with consumers, created an increasingly challenging environment for the company.

[4] In response to challenges, including the US–China trade tensions and the COVID-19 pandemic, Li & Fung announced privatization plans in March 2020 and was subsequently delisted from the Hong Kong Stock Exchange.

The company evolved from a traditional broker to a comprehensive supply chain solutions provider, offering services from design to logistics, which solidified its relationships with Western retailers.

This period of rapid expansion was followed by a strategic focus on core competencies in sourcing, trading, and logistics in the 2010s, in response to the shifting retail landscape and the challenges posed by e-commerce.

[12] The 1950s brought significant changes with the United Nations trade embargo on China, promoting Hong Kong's shift to manufacturing textiles, plastics, electronics, clocks, watches, and toys.

However, the 1973 Organization of Arab Petroleum Exporting Countries (OAPEC) oil embargo on the United States triggered a global recession that lasted through 1975, adversely affecting Li & Fung's financial performance until a recovery in 1976.

By the early 1980s, Li & Fung's clientele included The Gap and The Limited, with the company also serving as a distributor of handbags, belts, shoes, scarves, and other fashion accessories from Korea, Thailand, and Taiwan.

Li & Fung's diversification continued across other sectors such as real estate, warehousing, shipping, finance, and insurance through strategic joint ventures, acquisitions, and investments.

[15] Li & Fung's decision to go public in 1973 was aimed at enabling family members to gain financially from the company's success without direct involvement in its operations, while still retaining the majority of the shares (75%).

[17] In 1989, the Fung Brothers initiated a management buyout to privatize the company, a move intended to consolidate control and cultivate a corporate environment that would attract and retain talent.

[23] The company further diversified its portfolio through acquisitions in various sectors, including fashion, logistics, and retail, notably acquiring Tommy Hilfiger's global sourcing operations in 2007.

[34] Bruce Rockowitz assumed the role of Chief Executive for the newly independent Global Brands Group, listed on the Hong Kong Stock Exchange in July 2014.

[41] In 2017, following its removal from the Hang Seng Index,[42] Li & Fung sold three business units -- Whalen, Cobalt Fashion, and MEIYUME -- to Hony Capital for $1.1 billion, a transaction that involved substantial write-downs and an accounting loss of US$610 million.

[43][44] The years 2018 and 2019 witnessed a downturn in Li & Fung's core operating profit, with a 20% reduction in 2018, exacerbated by a 22% decline in 2019 due to store closures, customer bankruptcies, and margin pressures.

[54] In December 2021, LF Logistics, a subsidiary of Li & Fung, was acquired by the global container shipping company Maersk for US$3.6 billion in an all-cash transaction.

Although there was an expectation of improved financial leverage, Moody's cited "significant uncertainty" regarding Li & Fung's ability to maintain an enhanced performance level in the coming years.

Notable partnerships include the Asian University for Women (AUW), Business for Social Responsibility (BSR), Captivating International, Crossroads, Habitat for Humanity, Junior Achievement, Movember Foundation, Red Cross/Red Crescent, Room to Read, The Women's Foundation (TWF), World Vision, World Wide Fund for Nature, and various cancer research funds.

[70] The next day, the same publication reported that Li & Fung admitted that COVID-19's impact on global retail was forcing the company to adjust staffing levels but that the total percentage across all units in all countries wouldn't be anywhere near 70%.

[72] Li & Fung has provided consultation services to assist vendors in upgrading factories to meet the evolving demands of the supply chain complexity and compliance.

In February 2019, Li & Fung became an Associate Partner of the Global Fashion Agenda (GFA), joining other companies such as Everlane, G-Star Raw, and Selfridges Group.

[77] In July 2021, Li & Fung partnered with Canopy, an environmental organization, to use circular and next-generation alternative materials in their packaging solutions and engage with their brand and retail customers on sustainability practices.

[86] Criticism has been directed towards Li & Fung and similar companies over their negotiation practices, which some argue contribute to cost-cutting measures by factories that compromise safety and labor conditions.

Additionally, activists have criticized the company for its role in perpetuating low wages in developing countries and for alleged shortcomings in conducting thorough inspections of factory conditions.

[88] Peter Guy of the South China Morning Post further criticized the company's strategy, suggesting that the anticipated synergies from acquisitions failed to materialize and advocated for a return to focusing on the core competencies of Li & Fung.

[89] Concerns were also raised by SimplyWallSt in 2019 regarding the compensation of Li & Fung's CEO, suggesting that it was excessive compared to other executives in companies of similar market capitalization.

The second issue examined was whether the deduction of a marketing commission paid to its holding company in the British Virgin Islands from onshore profits violated anti-avoidance regulations stipulated in sections 61 and 61A of the Inland Revenue Ordinance.