Lectra gains new footholds in CAD/CAM market - Lectra Systemes

In a push to expand its global reach and offer customers more comprehensive business solutions - from textile design to virtual merchandising - CAD/CAM power player Lectra Systemes has recently expanded its portfolio with several acquisitions and a new strategic alliance.

The details of the recent deals were outlined by Lectra's senior management at the grand opening of the company's new Paris, France, headquarters. Bobbin was on hand for the late-March event, which also included a tour of several Lectra customers in the country. (See www.bobbin.com for plant tour highlights.)

Among the recent acquisitions: Hong Kong-based Prima Design Systems Ltd., a pioneer in the development of CAD systems for the fashion, apparel and textile industries; and 3D Visual Merchant, retail planning software developed by U.S.-based ModaCAD Inc. In another move, Lectra has signed a letter of intent for a worldwide strategic partnership with Netherlands-based Stork, a leader in textile printing and pre-print solutions.

At a time when the entire sewn products industry is looking to expand globally, lower costs and improve efficiency - from product conception to retail - Lectra expects these deals to strengthen the company's position as a global provider of integrated CAD/CAM products and services.

"Today, there is strong pressure on the sewn products industry to offer the best quality at the lowest price," said Daniel Harari, chairman and CEO of Lectra Systemes. "These agreements represent an important step in Lectra's vision to help companies achieve this goal through innovative technology."

This vision began to take shape last year when Lectra Systems Inc., the company's U.S. subsidiary, purchased Grand Rapids, MI-based Computer Design Inc., a supplier of high-performance design software with a large client list in the apparel, automotive and upholstery segments. Overall, Lectra now boasts a strong global network, with 9,300 customers in 100 countries, 36 subsidiaries, 78 offices and more than 1,400 employees worldwide. In April, the company announced strong growth in its first quarter profits, with a net income of $2.9 million, a 150 percent increase from last year.

In total, one-third of Lectra's 1998 sales were realized in market sectors outside of apparel. Harari noted that the company anticipates continued horizontal growth within many different sewn products manufacturing markets, which will be complemented by the acquisitions and alliance, and will foster vertical growth within the sewn products supply chain.

For example, the acquisition of Prima Design will strengthen Lectra's foothold in the textile arena. Prima Design is best known for its PrimaVision system, a CAD package that handles knit and woven fabric development, production and marketing. The company has more than 1,300 customers worldwide and, according to an independent survey, holds an 80 percent share of the textile design system market in Hong Kong. Under the agreement, the two companies also will work together to develop electronic data interchange (EDI) and e-commerce business solutions.

"This acquisition gives Lectra a leading position in Hong Kong and Asia, and a tremendous base to develop the group's activities in mainland China, which is tomorrow's largest market," Harari added.

Lectra's new strategic partnership with Stork also targets textile development. Under the arrangement, the two firms will jointly develop and market integrated solutions for textile digital printing of prototypes, samples and small runs. Stork, a textile printing group with a worldwide work force of 2,400 and more than 3,000 customers across the globe, offers a product range that includes the Manage Textile Print (MTP) solution, a suite of computer-aided design systems for controlling the textile printing process.

On the other end of the supply chain, the acquisition of ModaCAD's 3D Visual Merchant software, a visual merchandising and retail space planning tool, broadens Lectra's reach into the retail market. The package enables users - including Duck Head Apparel Co. (see "How to Boost a Brand," Bobbin, April '98), JCPenney and Levi Strauss & Co. - to effectively plan, visualize, adjust and communicate merchandising and store layout concepts via CAD. Under the arrangement, Lectra will co-develop, market and distribute 3D Visual Merchant worldwide. The complete deal, which includes a license for ModaFinity-ModaCatalog Visual cataloging software, was signed for an up-front fee of $3 million, as well as additional support fees of up to $2 million over the next 24 months.

Commenting on the recent agreements, Harari summarized, "it's a competitive global marketplace, and technology is the critical leverage needed for success. This is true for everyone, and our growth is based on our commitment to help clients implement the latest innovations to give them the tools they need to gain a competitive advantage."

Shawn Meadows is the assistant editor of Bobbin.

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