[Leica] Re: Leica's Reply to John Collier

["Paul T. Collura" <pcollura@epix.net>]

Thanks, John, for sharing this very interesting reply from Leica Solms with the LUG.  They obviously see the change as a way to incresase market share in Canada.  I had no idea that only 2.5% of Leica sales in N.A. is generated in Canada.  Perhaps Kindermann could have done more to promote Leica.  It will be interesting to see if Lisle Kelco can improve on this.

Paul

> Dear Mr. Collier,
>
> We have received your prompt reply regarding the change of Leica
> distribution in Canada and read your comments very anxiously. You learned
> about the motive from Mr. Werner Schmalz. Please allow us to explain the
> case from our point of view:
>
> We never doubted the loyalty of Werner Schmalz. You received great service
> and support. Neither personal critics nor "internal" issues between Leica
> staff and him lead to this step.
>
> The following rational facts turned into to bring a necessity of change and
> improvement:
> Only 2.5% of the American turnover is generated in Canada.
> Looking at the potential 10% market share that could be achieved in Canada,
> it appears clear to us, that we could do a lot better. Not to be
> unreasonable a 5% market share is still feasible.
> End of 1998 the Leica Camera AG has been almost insolvent.
> Considerable efforts and increasing sales in the most of our markets -
> besides many other actions, like e.g. the reduction of more than 100 jobs in
> Solms - lead to considerable improvements of the company's performance.
> >From your point of view, this decision is unfair. But in this case we do not
> talk about people, but about the future direction, which has already began.
> A part of it is, that a potential market has to be penetrated.
> Mr. Werner Schmalz gave his best, but only one person being a "one man show"
> is insufficient to cover a country like Canada.
>
> We see in Lisle Kelco, our new distributor, a partner, who runs an
> organization, that enables him to penetrate this market in a dealer and
> consumer oriented way.
>
> Under the new management, Leica Camera AG developed a future oriented
> strategy.
> This strategy is influenced and composed by all of us. We solidly focus on
> you as our retailer and naturally on our common customers. You also drive
> and benefit from this future strategy.
> An opportunity to confirm his great efforts, as a sales rep, with this new
> organization has been offered to Mr. Werner Schmalz.
>
> Yes; we do understand your disappointments about a one way communication and
> information flow. The more we want to clarify and explain our thinking and
> steps taken.
>
> The future will open new market chances for all of us with this new
> performance of the Leica Camera AG.
>
> Above all, we would like to thank Werner Schmalz and his colleagues at
> Kindermann (Canada) Inc. for their efforts and work in the past.
>
> Please look ahead and give Lisle Kelco your faith. We will not disappoint
> you.
>
> Best regards,
> N.R. Strauch    .