Strengths & Strategy

Strengths & Strategy
  • Competitive strengths
  • Company strategy

Targeting a broad market segment with a quality product.  Lecico’s strategy is to provide affordable, high-quality products to the low- to mid-price market segments in Europe and the Middle East. While intending to remain focused in these segments, Lecico has steadily improved both its pricing and branding. By offering a wide variety of styles at consistent, European levels of quality, Lecico is able to exploit its natural cost advantages in Europe.

Strong brand recognition in core markets.  Lecico is the largest sanitary ware producer in Egypt and Lebanon. The Lecico brand, which has existed for over 50 years, is becoming globally recognized as a competitively priced producer of European quality sanitary ware and quality ceramic tiles. Lecico’s ability to offer both sanitary ware and tiles gives the company a strong competitive advantage in the Middle East.

Competitive manufacturing costs.  Lecico has a very competitive cost structure, discounted shipping rates and economies of scale. Lecico's competitiveness is particularly strong in sanitary ware, where casting and finishing require significant skilled labour.

Low investment costs.  Lecico benefits from low investment costs due to a combination of production line design, economies of scale and internal and local manufacturing of equipment. Lecico designs its production lines to manufacture at above international industry productivity norms. Lecico also benefits from economies of scale on many overheads and infrastructure costs, as its plants are more than twice industry capacity norms. Additionally, Lecico produces or locally sources a significant portion of its plant’s machinery at competitive costs.

Experienced management and employees.  Lecico’s particular mix of expatriate and local staff combines extensive experience in the sanitary ware and ceramics industry with company-specific experience and commitment. Lecico has been able to attract, motivate and retain some of the best talents in its industry due to its reputation, market position and rapid growth, which offers employees ample opportunities for advancement and development. Lecico's senior management average 17 years with the company and 24 years of industry experience.


 

Lecico’s strategy is to leverage its large production base in Egypt to build a significant presence across the Middle East and Europe by providing innovative, modern design and world-class quality ware at competitive prices.

Expand regional and International Exports. Lecico’s strategy is to continue developing its presence and footprint in regional and European export markets under its own brands and as an OEM producer for leading global manufacturers.

Lecico’s exports to Europe account for over 80% of exports and over 35% of the company’s sales. The Lecico brand has a 10% market share in the UK, France and Ireland combined. Lecico plans to increase it’s market share in Europe by targeting new markets and OEM customers while also widening its offering in existing markets. Lecico will also continue to selectively explore any opportunities to make value-enhancing acquisitions.

As a result of Lecico’s focus on growing its presence in regional markets, the company’s sanitary ware and tile exports to the Middle East have grown 50% annually over the last five years. Lecico sees strong opportunities for continued growth in regional markets, particularly in those countries with large populations and underdeveloped or rapidly growing economies. Lecico has established small trading subsidiaries in Saudi Arabia and Algeria to better access these markets.

Lower production costs. Lecico’s production base in Egypt provides it with relative cost savings in energy and labour that allow it to be a competitive producer of world-class quality products for European and regional markets. The company is dedicated to constantly improving efficiency, cost control and vertical integration in an effort to remain competitive.