As for acquisitions, Fung said the company will continue to buy new businesses, with a focus on two sectors: health, beauty and cosmetics, or HBC, and footwear.

“We’ve always been in footwear, but it was small. We’re not as strong as we can be in the brown shoe business,” said Fung, who noted the company acquired Peter Black International in the U.K. to increase its presence in footwear and beauty, especially in Europe.

Last year, Li & Fung also acquired CGroup, a Hong Kong-based HBC supply chain manager, on the belief that the cosmetics industry didn’t anticipate the Asian market for its products.

“In the past, these products were all made in the U.S. or Europe, where the customers were,” Fung said. “Now, transportation costs are high and the customers are in Asia, in China. We want to manufacture in China.”

In addition, in 2007, the group purchased Tommy Hilfiger’s global sourcing operations, four Liz Claiborne brands and numerous outsourcing companies, including property brand specialist Regatta, Helly Hansen Outsourcing, Woolworth Germany Outsourcing and American Marketing Enterprises.

Already this year the firm has acquired CPD Asia, which makes cosmetics display units, and Silvereed Group, a fashion company that works with such brands as BCBG.

“We’re not just looking for big [acquisitions], but also for small ones,” said Fung, who noted that Li & Fung keeps a war chest of $100 million for smaller acquisitions. “Things are still hot on the acquisition front and it will continue.”