Case Study: Exporting Lusan Fasteners

The company LUSAN

LUSAN fijacions y anclajes, S.L. was created in 1999 by professionals with extensive experience in the hardware sector. The aim of the new company was to manufacture and supply hardware stores or industrial suppliers with a type of metal anchorage that was becoming increasingly in demand at that time.

This specialization led to a rapid acceptance and increase in both sales and the number of customers who were relying on the good work of the company.

At the same time, this constant growth led to a greater demand and variety of product range from customers, which encouraged the company to review, incorporate and expand its catalog every year, adding new business lines such as nylon, screws, lifting elements, rivets, etc…. which has led the company to have one of the largest catalogs in its sector in Spain: 5,000 product references.

On the other hand, one of the priority objectives for the coming years is the introduction and sale of products to the international market, both in Europe and in such interesting and highly promising markets as the American continent, Africa or the Middle East.

LUSAN currently sells its products in countries such as Peru, Brazil, Mexico, Costa Rica, Portugal, France, Italy, Czech Republic, Israel, Belgium, Saudi Arabia.

The trade fairs of the sector

In industrial subcontracting we can find:

–   Salon Industrie: http://www.industrie-expo.com/

–   Salon SEPEM: http://www.sepem-industries.com/

–   Salon SIANE: http://www.salonsiane.com/

–   Salon Midest: http://www.midest.com

–   Salon Ouest Industries: http://www.ouest-industries.com/

And the construction ones, can be..:

–   ARCHIECT@WORK – PARIS http://www.architectatwork.fr/

–   EQUIPO’BAIE http://www.equipbaie.com/

–   BATIMAT FRANCE https://www.batimat.com/

–   IDEO BAIN https://www.ideobain.com/

–   INTERCLIMA + ELEC https://www.interclimaelec.com/

–   INTERMAT https://paris.intermatconstruction.com/

The French fixing market

By 2014, the fastening market was quite saturated with French companies in this industry. The market for fixed assets is worth around EUR 20 billion. In 2015, there are more than 9,000 companies offering fastening products similar to those of Lusan to the French territory.

The sector has gone through some difficult years due to the economic crisis as it is heavily dependent on the construction sector. As demand from its main purchasing sector has fallen and the remaining companies have difficulties in making ends meet, we have seen a greater influx of Chinese manufacturers with cheaper prices than the French, and Europeans in general.

Francia The main clients of the fixings in France

Percentage %
Retail and organized sales 13,66
Independent trade 5,05
Distributors of the company’s own network 1,21
Wholesalers 11,86
Sales to professional users 63,37
Sale to individuals 2,29
Foreigner 2,56

As we can see, the main buyers of fasteners in France are end users/professionals. Only 2.56% is sold outside the country. On the other hand, 40% of the production is made outside France.

The multi-portfolio commercial agents in the fastening sector

We have decided to look for independent commercial agents to cover the maximum of French territory. We’ve done some very thorough research to narrow down the profiles. We have created one to BBDD of 50 commercial agents that is not a very extensive list. But we didn’t have to look any further as the profiles were very well identified and were what the company needed.

On the other hand, as there have been many positive responses, there have been many negotiations and drafting of contracts, even though some of them have not been successful due to the company’s decision.

A total of eight sales agents were introduced to Lusan. And we are sure that from now on they will establish Lusan’s presence on the French market. We wish our client much success in the future.

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Barcelona Export forms a new export group in industrial subcontracting for the French market

The neighbouring market, France, is one of the major importers of industrial subcontracting services for our companies. Factors like the difference in the cost of labour and the high level of technical skills of our companies, together with a privileged geographical position favour trade in these services. Therefore, Barcelona Export has formed an export group consisting of 4 complementary companies to approach this market.

Advantages of an export group

The most significant benefits are:

– Faster prospection and penetration of the market
– It consolidates a more attractive offer for the buyer
– It favours synergies between its components
– Prospection costs are reduced since they are shared
– It provides travel companions during the internationalisation process

Characteristics of an export group

An export group has the following characteristics

– Firstly, it consists of 4 complementary companies
– Each of them maintains their own legal status
– Furthermore, they all aim at the same market
– and prospection costs are split.
– The members aim at entering the same market or country
– They also share a group manager who acts and prospects on their behalf
– All in all, it is a program with a minimum duration of 12 months

Members of our export group

Our export group of industrial subcontracting is formed of 4 complementary companies, including:

1…. Automotive parts stamper with TIER1 customers
2…. Machining of small and medium series metal parts (milling cutter and lathe)
3…. Machining of all types of plastic parts
4…. Industrial sheet metalwork with complex welding, powder and liquid painting processes

Type of duties of the group manager during the next 12 months

The companies are members of the cluster Centrem, which organizes an initial meeting to launch the project. The manager will have an email address like or of each of the companies that form the group. The purpose of using this mail address is to prospect on their behalf. The manager will then act as your outsourced export department. This means looking for sales agents, distributors or end customers. Negotiations of international contracts are carried out jointly with each company, whether they are representation or distribution contracts, and budgets requested by clients who require tailor-made products are processed and translated.

Furthermore, the group holds a quarterly meeting at the cluster’s headquarters. There, we can discuss the progress of the project and companies can ask questions. They can also exchange experiences with their group colleagues. Moreover, each member of the group receives follow-up reports on their international commercial prospection. The group manager sends these on a monthly basis.

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Barcelona export leads a subcontracting Export group to sell in the French market

For more than 10 months Barcelona Export has been managing the commercial canvassing of an export group specialized in industrial subcontracting.

This group is comprised of 3 industrial subcontracting companies : one of hot stamping of brass pieces, another specialized in manufacturing custom and standard pieces of brass fittings and the last one dedicated in proving services of bumping stainless steel and laser cutting.

– The target market

The business plan established covers the strategic penetration of the French market.

– Distribution channel

The agreed search for final customers will be common for the three companies, although different researches will be done according to the specificities of each participant. Up to now, we already organized several commercial agendas in France to visit both commercial agents and distributors of some of the products. We also met with some of the commercial agents to help with the negotiations between them and the company.

– Prospection results

Two of the companies already received straight orders and have been establishing new relationships; the third one is in the phase of selection of the different agents suggested.

All of them benefit from several profiles of multiportfolio commercial agents interested by the representation of their products.

– The costs of an Export Group

The creation of this Export Group was initiated thanks to the latest to the latest 2015 Acció grants whose goal is to support the Export Groups. The grant assumed 40% of the consultant cost. This way, all three companies have been able to open or consolidate their presence within the French market while reducing the costs of prospection and strengthening their joint offer.

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The sales agents meeting in Paris between Spanish metallurgical companies and French agents is coming to the end