By Aimee Chanthadavong

Myer aims to increase its direct outsourcing from China and Hong Kong by around $50 million in the next five years.

Currently, the company directly outsources around $150 million worth of products through offshore manufacturing-outsourcing company Li & Fung and aims to increase that to $200 million by opening two dedicated global sourcing offices – one in Shanghai and one in Hong Kong – from August 2011.

Jo Lynch, Myer spokesperson told RetailBiz that while Myer’s relationship with Li & Fung has helped the direct outsourcing growth, the company is confident that it can better source its products from its new offices.

“We have now reached a point where we source sufficient volumes to warrant the establishment of our own sourcing offices offshore,” she said.

“Going forward we anticipate further growth in the level of overseas sourcing to support our store rollout program and assist in growing our proportion of sales from Myer Exclusive Brands to our target of approximately 20 per cent of group sales.”

Lynch also said that outsourcing across Asia and other parts of the world will help Myer retain newness and competitiveness.

“[We will have] better control of quality and supply chain and better relationships with suppliers especially in an environment of increasing input costs,” she said.

The two offices will be overseen by John Amm, Myer general manager global source, who has relocated to Shanghai. The company is also looking to hire over 60 people for its new offices with key management roles already in place for each office.

“We are making good progress in the establishment of our global sourcing offices in Shanghai and Hong Kong,” Lynch said.