From the Sector

Paris, February 20, 2018 – Lectra, the technological partner for companies using fabrics and leather, is pleased to announce its partnership with Dual through the signing of a global agreement covering the Korean automotive supplier’s fabric seating and airbag businesses.

Backed by world-class research and development, Dual strives to meet evolving customer needs by offering innovative new automotive interior materials and advanced safety textiles. The supplier’s automotive trim and airbag divisions serve Hyundai-Kia Automotive Group, the fourth largest automaker in the world. Currently undergoing rapid expansion, Hyundai-Kia is counting on Dual to increase its manufacturing capabilities in the high-growth regions where the group operates, including China, Eastern Europe, Turkey and South America.

A key feature of the global agreement is Lectra’s commitment to help Dual optimize its manufacturing processes with the aim of improving its cost structure. Lectra’s most advanced technologies—Vector® for vehicle seating and FocusQuantum® for airbags—and unique expertise in cutting room processes are crucial to helping Dual reach its operational excellence objectives.

The agreement designates Lectra as sole supplier for high-ply cutting equipment and services for Dual’s seating and interiors business, and laser cutting equipment and services for the company’s airbag cushion business at six plants located in Korea and China.
For its operations in Korea and China, Dual will gain access to the full array of expertise, customer support and field services that Lectra provides worldwide. Lectra’s complete customer support structure enables maximum uptime through remote diagnostics and predictive maintenance.

“Dual will benefit most from this agreement by containing costs in the cutting room,” remarks Ong Jae-Yeol, Fabric and Seat BU Executive Managing Director, Dual. “This is precisely where Lectra’s expertise can help us gain a competitive advantage.”
“We are pleased to enter into this global partnership with Dual, to support them—not only with our best-in-class cutting technology, but also with Lectra’s expertise in cutting processes,” states Javier Garcia, Senior VP Automotive Sales, Lectra. “Our unique know-how contributes to Dual’s pursuit of operational excellence—the source of sustainable competitive advantage for car seat cover and airbag cushion suppliers.”

• Amazon, EasySize, Evo Pricing and Lectra explored diverse uses for customer data during a round table event organized by the ESCP Europe - Lectra ‘Fashion & Technology’ Chair Paris

Lectra, the world leader in integrated technology solutions dedicated to industries using fabrics, leather, technical textiles and composite materials, the French business school ESCP Europe and their joint ‘Fashion & Technology’ Chair examined the multiple ways the fashion industry’s ecosystem can use customer data, during a recent round table event at the start of the fifth Fashion Tech Week in Paris.

Elise Beuriot, senior category leader, EU Luggage, Amazon, Olivier Dancot, VP of data, Lectra, Fabrizio Fantini, founder and CEO, Evo Pricing, and Gulnaz Khusainova, founder and CEO, Easysize, agreed straight away on one key point: the analysis of customer data lends itself to limitless applications along the entire fashion value chain. Its impact is immense, whether in terms of customer satisfaction, competitiveness, revenues or waste limitation.

As early as the design phase, a wealth of data offers many sources of inspiration for stylists. For teams in charge of collections, “complex models allow the analysis of data like online traffic and purchase history in order to design and offer the products that consumers expect, which is a priority for a company obsessed by the customer, like Amazon,” stated Elise Beuriot. For sales, “decisions based on data trigger millions of orders. The impact on the inventory is enormous,” she added.

“Fashion is an industry where unsold items generate a lot of waste. Algorithms and big data analysis can reduce left-overs by anticipating demand several weeks ahead in order to optimize the price and replenishment,” observed Fabrizio Fantini. “Fashion companies who exploit data to inform their decisions become more efficient. They are better armed to protect their margins, but can also sell for less, and potentially reach a larger number of consumers.”

Other IT models aggregate customer data in real time ‘to determine, among hundreds of factors, those which have the biggest influence on buying decisions. Value doesn’t necessarily lie in the volume of data but in the depth of the analyses,’ claimed Gulnaz Khusainova. Easysize is careful that collected data is anonymous, she underlined, because ‘consumers need to keep control of their data, and know how it is used’.
For editors of software dedicated to fashion businesses, and suppliers of cutting machines designed for the clothing industry, “analyzing usage data from our solutions enables the offer to evolve, making each step in the value chain more efficient and perfectly adapted to the needs of the brands, retailers and manufacturers. What is at stake is better quality products, placed on the market as quickly as possible and at a reduced cost,” explained Olivier Dancot.

“It is easy to collect data, but difficult to extract actionable information. Everything hinges on data analysis,” concluded Céline Abecassis-Moedas, professor and co-scientific director of the ‘Fashion & Technology’ Chair and moderator of the round table. “Due to its emotional dimension—from the stylist’s inspiration to the consumer’s desire to buy—fashion is not an industry like others. However, all the components that make up its ecosystem can truly benefit from the judicious exploitation of customer data. Examples discussed this evening illustrate the diversity of what is possible.

• Revenue up 11 percent to EUR 1,149.1 mn
• EBITDA increase of 38.8 percent to EUR 270.7 mn
• Detailed planning for new production plant for TENCEL® fibers in Thailand in Progress
• New sales offices opened in Turkey and Korea
• New EcoVeroTM branded viscose fibers with very favorable ecological footprint launched

The Lenzing Group generated new record highs in the first half of the 2017 financial year for both revenue and earnings. The key underlying factors were good capacity utilization, higher selling prices and an attractive product mix. Lenzing will continue to focus on the disciplined implementation of the Group strategy sCore TEN, in order to be even closer to the customer and to further expand the offering of specialty fibers.

Consolidated revenue increased by 11 percent from the first half of the previous financial year to EUR 1,149.1 mn. Consolidated earnings before interest, tax, depreciation and amortization (EBITDA) were up 38.8 percent to EUR 270.7 mn, corresponding to an EBITDA margin of 23.6 percent in comparison to 18.9 percent in the prior-year period. Earnings before interest and tax (EBIT) increased by 57.4 percent to EUR 204.2 mn, resulting in a higher EBIT margin of 17.8 percent (H1 2016: 12.5 percent). The profit for the period improved by 58.9 percent to EUR 150.3 mn, and earnings per share climbed 59 percent to EUR 5.55 per share.

“The first half-year developed very well for the Lenzing Group, and we are pleased with the best half-year period in the company’s history. We will continue our disciplined implementation of the sCore TEN strategy. The expansion of new state-of-the-art production capacities for our specialty fibers is proceeding well and will support our customers in their own expansion efforts for products made of our botanic fibers. The decision to set up a subsidiary and acquire a respective landplot in Thailand is the next step in the implementation of this strategy. On the innovation side we are proud that after the introduction of RefibraTM branded lyocell fibers, we launched now EcoVeroTM. This is a particularly high-performance fiber featuring a very favorable ecological footprint and sets the new benchmark for the entire industry – from fiber to garment”, states Stefan Doboczky, Chief Executive Officer of the Lenzing Group. “Assuming that fiber market conditions remain at current levels, we expect a substantial earnings improvement in 2017 compared to 2016.”