Go via Hong Kong, says head of French firm

KC Tan, managing director of Lectra Hong Kong Ltd, a firm started 31 years ago in Bordeaux-Cestas, France, said he always advises his clients: "If it's your first time in China, find a Hong Kong partner."

"Our clients, excited by business opportunities in the mainland, always want to know whether they should opt for joint ventures, FOB business or have wholly owned entities. Invariably, I always advise them to go via Hong Kong," added Mr Tan who's a Singaporean.

He said his North American or European clients always insist on compliance with human rights or ethical manufacturing. "Hong Kong is very good and savvy with these things and there are a lot of Hong Kong companies with very good manufacturing facilities in the mainland."

Technology solutions for developing and manufacturing

Lectra's technology solutions such as computer-aided design (CAD) and computer-aided manufacturing (CAM) are especially relevant for Hong Kong's fashion and apparel sectors given the city's history in the garment business. Among its 500 customers in Hong Kong are well known local brands such as Bossini, G2000 and Glorious Sun and large apparel manufacturers such as Crystal Group, Ace Style and TAL Group which manufacturers for global brands.

Lectra also has an impressive international client list that includes Kenzo, Givenchy, Armani, YSL, Versace, H&M and Marks & Spencer.
Mr Tan said close to 80 per cent of Lectra's business in Hong Kong is in textile, fashion and apparel sectors with the remaining 20 per cent in upholstered furniture, footwear and bags.

"Lectra is the technology partner to help our clients compete better especially in the garment business which relies on fast deliveries. You must use technology or else you simply will go out of business," added Mr Tan.

The fact that Hong Kong is a trade fair hub and an important trading centre enables the company to showcase its latest technology solutions. "Trade fairs remain one of our key marketing channels and in Hong Kong we always take part in the Fashion Week. A lot of overseas companies have buying offices in Hong Kong and this is where we get the most exposure."

Lectra has now grown into a global company with operations in 100 countries and a turnover of US$272 million. More than 90 per cent of its revenue comes from outside France with both Asia and N. America each contributing 18 per cent and Europe which makes up the bulk at 56 per cent and the rest from other countries.