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Low Cost: Ediliance questions Charles Beigbeder about his report "How low cost could be a leverage to improve purchasing power?"

January 31 th on " les Echos.fr" dialog between Hervé Cotty CEO - EDILIANCE and Charles Beigbeder CEO POWEO and author of the report "Low Cost: Leverage to purchasing power" established on the request of Luc Chatel - French consumption and tourism Minister.

Among interesting ideas, there is a real issue considering the methodology employed in your report. Based and limited to the exemple of the air travel industry, you generalise to conclude to overall benefits of low cost products for consumers. However this is a matter of fact that air travel costs represent only a small part of consumer's budget. From our point of view, low cost production in industry remains the central problem as industry is the sole primary provider of value in the chain. Should we manufacture at low cost in western Europ or should we focus on top-of-the-range products? How can we produce low cost products with western manpower charges? How to take advantage from low cost countries without destroing our own industries and employments? Witch industrial policy as to be promoted and supported by governments? Why did'nt you address such topics?

French consumers have a purchasing power problem. Either we increase their revenues with the consequence of cutting charges witch means less revenue for public expenses, either we cut prices by enlarging the offer and promoting low cost products and services. Industry problem is an other subject, the answer should be searched from inovation witch is the sole way to survive in the globalization's context.