An industry strategist at Lawson Software says fashion companies are not cutting back on technology spend during the financial downturn.

Speaking to just-style at the Prime Source Forum in Hong Kong, Lawson Software industry strategy director Bob McKee said demand for fashion goods had changed but not wilted.

The software company has seen an uptake in preconfigured solutions like its QuickStep software, which have a lower overall cost of ownership.

McKee told just-style: "Business in general is sound. We saw some organisations slowing down due to the crisis, but not backing away, and they continue investments in IT.

"In the US we are seeing more of a reaction but it seems to be more hype than a reality.

"The downturn has been good for us in certain ways because Lawson's total cost of ownership is much more viable to take up than our competitors."

He went onto say that judging by past recessions, the demand for clothing and footwear will not soften.

"From a purely fashion perspective we are doing OK," McKee added.

However, he also noted that current supplier angst meant many fashion supply chains were like an elastic band with the customer waiting at the end, which needed to be addressed.

Lawson Software, which operates in the food and beverages, healthcare and financial services industries too, last week reported total revenues for the third quarter of US$173.8m, down 18% from the same period last year.