As the various leading CAD and PLM vendors reported earnings in
recent months, there seemed to be a common trend when discussing
their Asian sales. Almost every company said it was disappointed
with sales in Japan, even if we had to read between the lines.
Examples from recent reports in CADCAMNet:
- Autodesk, for example, said its sales were
“stabilizing,” from which we infer they have been
“unstable.”
- ANSYS had a gangbusters year, with total revenue up 94%,
yet Japan was only up “in the single digits.”
- EDA firm Cadence said its business in Japan “contracted”
in 2006.
Of the major CAD and PLM vendors, PTC came the closest to
saying business was good. As we reported in January, “PTC says
Japan is turning around (up 24%) but still represents a
significant challenge for all PLM vendors. Revenue growth in the
rest of Asia-Pacific was up 28%.”
To get a closer look, we asked Yohei Kato, Product Manager,
PTC Japan, to explain more about the Japanese CAD/PLM market.
CADCAMNet
(CCN): By and large the major CAD and PLM vendors have
stated that sales in Japan are lower than they would like,
considering the size of the market. What makes the Japanese
market special? How is it different from the US market?
Yohei Kato (YK): First of all, Japanese customers are
much more conservative in terms of adopting new technologies.
The general rule of thumb is that Japan will be five years
behind the US enterprise software market.
CCN: Is the Japanese marketplace generally more
cautious about IT investments? Are Japanese companies just not
as interested in PLM and related technologies? Is it a matter of
priorities?
YK: It is a combination of factors. Japanese companies
on average spend a lower percentage on IT investment than
similar firms in the US. A recent study by Gartner Japan found a
significant difference between Japan and the US on IT investment
attitudes. The objective of Japanese IT investment is more
defensive in nature, whereas in the US IT investment is more
strategic in nature.
Read more...
- PLM awareness among Japanese manufacturing companies
- Why sales and revenue growth are low in Japan?
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