David Zelkha I Profile
business and I like to think that we’re pretty good at it. You need to be able to listen to and understand them. In distribution you’re only as good as the last order. We’re still working with and dealing with names from my father’s time. That means some relationships go back well over forty years, so we’re doing something right.”
The move into distribution shouldn’t
really be seen as a surprise though. Back in 1987 Zelkha had been part of a small team that set up DT Electronics, a franchised electronic component distributor that specialised in servicing the UK broadcast equipment industry. “I was still working for Luso but my involvement with DT certainly opened up a whole new horizon for me,” he says. “I really enjoyed working in distribution so when I got the chance to launch the new division I jumped at it. I was keen to run something on a smaller scale than had been the case with DT Electronics.” DT Electronics ran successfully up until it was sold to Nu Horizons a few years ago. “I had no regrets about the decision to sell the company when we did and last May was the right time to set up Luso Electronics Distribution. I was actually approached with the idea. I knew that some people were looking to leave Nu Horizons, which itself had been bought by Arrow, and I saw a real opportunity for a smart, well run and focused distributor. “I’ve always believed in niche and essentially not taking on too much. I suppose I learned that from my father. Don’t take on too much and when you work on something stick with it. The other
thing he taught me was to make as much as you can, while you can, but don’t kill yourself doing it.” Zelkha is refreshingly candid when you talk to him and while his offices are based in the City of London his approach to business couldn’t be more different to the banking giants his company operates beside.
“When you develop a business you owe a debt of gratitude to the people who helped you. That’s the very least you owe those around you and I think that’s something that’s been lost in today’s market. Globalisation has swept that approach away.
“When I look back to when I first started companies were a lot smaller and the focus was invariably on service and personal contact, and it didn’t matter how big or small the contract was. The model my father created, and which I’ve continued, is about providing an outstanding level of service and that level of service shouldn’t vary with the amount you spend with us. For him it was about developing a personal relationship.” It’s an approach to business that Zelkha admits is getting harder to live up to. “You have to compromise more and that does worry me. We worked very hard at DT Electronics, for example, so that we didn’t have too and I learned a lot from that. I’m trying to pass these ideas on to my son but you can only advise. I wish I was as good a teacher as my father was.”
New models
Smaller distributors seem to be ‘punching above their weight’ at the moment but
while Luso is certainly winning business it remains a tough competitive market. “We’re gaining deals because as a smaller distributor you can be more focused on service but it is difficult, when you are our size, to break into certain markets. We’re trying to get into the military market, for example, as it could be a big growth area for us but its proving difficult. The market is changing, budgets are being cut. Our focus is not on replacing existing product but next generation design wins. It’s tough but once you do break in projects can last up to 10 years.
“I actually think one possible route into this kind of market for a distributor like Luso is to partner with a larger distributor, an Arrow or an Avnet, that has every door open to it. At the moment it is a problem and it is holding us back.” Luso’s distribution strategy is heavily focused on its relationship with SynQor. “That is our primary franchise and any new franchise is looked at in terms of how it will compliment that line. Their focus is on the military, the rail industry and energy efficiency in general. They’re an exciting company working on some very interesting products.” Apart from the technical and
commercial support that Luso can supply SynQor, the two companies are working to develop a new distribution model that once finalised will be rolled out across Europe.
“As a company they are very successful in the US and Far East and we’re looking to repeat that success in Europe. They’re not a big company and we’re the kind of
niche supplier they wanted to work with in order to develop their business in Europe.”
I ask Zelkha how he sees himself as a businessman. “I think I’m a realist when it comes to business. Luso is a business in transition. I do have a laid back style of management, that’s true, but I’ve surrounded myself with a strong team who I trust and rely on to make the right decisions.”
Last year Mick Grahame-Dunn joined as business development manager with a brief to drive sales, marketing and product management while Andy Eden was appointed sales manager, managing customer sales and support activities for the company’s distribution division. “I’ve known Andy and Mick for a very long time. We needed to put in place a more defined management structure because the business requires it. I make the final decision when it comes to it, but I’m advised by them and the other members of the management team.” Open and transparent Zelkha talks at length about being in business for the right reasons. Not one to make a fast buck “I would have retired years ago, if that had been the case” he talks about the importance of the long term. “This company has real potential and with my son now joining the business I’d like to think there is a real opportunity to carry on the work my father started over 60 years ago. I certainly don’t think of retirement and as long as the people around me enjoy what they do, I think I’ll be around for a few more years yet.” ■
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Components in Electronics
March 2012 15
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