China growth delivers record results for Lectra
25/05/2011
He said the increase in sales of the company’s technology and services in China made that market the most important globally for Lectra now. “We resisted calls to lower our prices during the crisis,” Mr Harari said. “As a result, our technology is 50%, 100%, sometimes 200% more expensive than that of our competitors, but we have grown market share because we have been able to show our customers that investing in technology is about earning rather than spending money. The cost of labour is increasing by 10% or 20% per year in some developing economies. Our offer, based on lean manufacturing principles, is reducing loss and reducing waste for customers.”
He explained that his company’s analysis of the Chinese market showed there were 60,000 manufacturing companies there that, in theory, would benefit from using Lectra’s technology. However, the technology provider’s success in China last year was the result of attempting to win business not from all 60,000 potential customers, but focusing only on the top 300. “We focused only on the top of the class,” Mr Harari said. “We can bring more to them.”
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