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Invest in Training to Get the Best out of Technology.

Invest in Training to Get the Best out of Technology. Interview with
Mr. Robert Agnes - President Asia, Lectra Systems Asia. and Mr.Andy Kim, Sr.V.P. Marketing, Lectra Systems (Shanghai) Co. Ltd.).

GARKNIT World caught up with with Robert, Agnes, President Asia, Lectra Systems Asia and Andy Kim, Senior Vice President Marketing, Lectra Systems ( Shanghai) Co.Ltd at their booth at CISMA 2009. In a freewheeling interview both of them talked about the new innovations from Lectra and their efforts towards customer service and plans and strategies for Bangladesh market. Here's an Except:

GW : What is new from Lectra at CISMA 2009?

A : At Cisma we are introducing the latest knowledge we have embedded into our systems, Kaledo Design software, launching it for the world market here. We are leader in software for patten making and for marker making solutions. Our Cutting machine which embodies the latest technology in cutting solutions and also our Smart Services, unique capablity within our hardware system within our cutting machines viz., remote call centre through which we can connect directly to our customerss hardware and able to control the machine through internet, so distance is not a hindrance any longer for us.

We are able to solve the problems of our customers without distance being a barrier. Customer in Bangladesh can connect to our call centre in Shanghai and get his problem addressed. One of the major things you can take away from Lectra is that we have complete solutions for apparel customers, from design

to development to producing and managing solutions and we are kind of soft launching PLM our Life cycle Management tool for apparel market here which will have a concrete annoucement later down the line in 2010.

GW : For someone to get the best out of your systems what should be his outlook? Some think it far too expensive and while those who have invested are not able to get the best out of machine etc.,

A : The issue is the same in Bangladesh like it is everywhere in Asia. To get the best out of our machines or our software, users need to invest in training.

In common parlance it is like buying a good car but not having the driver or not having the license to drive. When our customers invest first time in this kind of technology they can get best return on investment if they invest in training also. Our Agent in Bangaldesh is equipped to do both service support as well as training.

GW : What efforts do you take to update your customers on your constant innovations?

A : There is a system, we offer service contracts or evolution contracts where the customer when he buys our software he can buy the service contract for a small amout of additional money whereby whenever we release newer version of the software then the customer gets that release. We can also train the customers if he contacts us on the new features.

GW: Whereas in countries like Sri Lanka, Spreaders, Cutters appear to be part of the standard equipment whereas in countries like India and Bangladesh it is considered a luxuary if not a necessity. How much do you perceive the need for such products given the variety of products manufactured there?

A : The need is there, although if you look at the complexcity of the products produced in Bangaldesh today, they are less complex and low cost products and operations are based on low labour costs and highly manual. But, the market is becoming competitive and it is becoming more and more difficult to make money in the industry.

I am not privy to the local taxes and subsidies given by the government, but if the companies could adopt technology. Over the short term particulalry for the low value producers it will be low return on investment, over the mid term like three years or more, the technology gives significant competitive advantage to the

companies. We have a large installation base of cutters in Bangaldesh because being a predominantly export driven market, the buyers are pushing companies for higher quality and higher productivity and lower cost and the only way to get there is thru adoption of technology.

GW : What is the outlook for Bangladesh market?

A : Bangladesh is one of the markets that is projected to grow, partly because buyers are looking for lower costs than China in lot of cases as the Chinese manufacturers are moving up the value chain and are focusing on their domestic products. So what is happening is that migration of orders for low cost products to Bangladesh, Vietnam and even to Sri Lanka and India.

GW : What is the game plan of Lectra in Bangaldesh for the coming year?

A : Lectra has had a long presence in Bangaldesh. We have a very good agent for long, out there and hence we have a reasonable understanding of what is going on in the market and we will continue to work through that.

GW : What is your view on where does the recession stand?

A : If I knew the answer, I would have retired and made tons of money thru investments(laughs). But generally what we see is that things have bottomed out and stabilized. Companies are beginning to invest again. But, they will not be investing at the level they were investing two years ago. We have seen decline stop. As to when and how it will grow it is difficult to predict. One has to wait and see hoping for the best.

GW: Has this recession changed anything fundamentally in the way garments are produced?

A : China has been the heavyweight in garment production for the past several years. What we have seen is a sort of consolidation of the industry and what we will see is increased adoption of technology to improve productivity andbkeep costs low in spite of rising labour and energy costs.

China will continue to be the heavy weight. But significantly, highest export growth rates have come from countries like Bangladesh and Vietnam and we will continue to see that trend continue.

GW : How has been the response from CISMA for Lectra?

A : Robert Agnes - I cannot comment since i was occupied in meetings throughout.

Andy Kim - Though I cannot comment in comparison since I was not present in last edition, but from whatever inputs I have received, it appears that the numbers are less compared to last edition.

Though that is not reflected at our booth where we have been quite busy. Looking in the backdrop of recession, it has been encouraging.