Our Business Model
Luxottica operates in a continually evolving and highly competitive global market
Quality of products, plants on the cutting edge, unique retail and wholesale distribution. This is Luxottica Group, a worldwide integrated leader.
Luxottica's products are distinguished by the excellent design and the high quality and they are known all over the world thanks to a strong and well balanced brand portfolio.
Proprietary brands include Ray-Ban, one of the world’s best-known eyewear brands, Oakley, Vogue Eyewear, Persol, Oliver Peoples, Alain Mikli and Arnette. Licensed brands include Giorgio Armani, Burberry, Bvlgari, Chanel, Coach, Dolce & Gabbana, DKNY, Michael Kors, Paul Smith, Ralph Lauren, Prada, Starck Eyes, Tiffany, Tory Burch and Versace.
The Group’s wholesale distribution network covers more than 130 countries across five continents and has nearly 50 commercial subsidiaries providing direct operations in key markets
Particularly revealing is the penetration in the emerging markets, as well as in the new channels represented by the large department stores, travel retail and e-commerce.
Together with the direct control on wholesale, Luxottica has the most extended worldwide retail network, comprising over 7,000 stores worldwide as of December 31, 2014.
Luxottica is a leader in the prescription business in North America with its LensCrafters and Pearle Vision retail brands, in Asia-Pacific with the OPSM and Laubman & Pank brands, in China with the LensCrafters brand and in South America with the GMO brand. In North America, Luxottica operates points of sale for its retail licensed brands under the Sears Optical and Target Optical brands.
Additionally, Luxottica operates one of the largest managed vision care networks in the United States through EyeMed and the second largest lens finishing network, with three central laboratories, over 900 on-site labs at LensCrafters stores, a fully dedicated Oakley lab and an additional facility based in China dedicated to North American optical retail.
Luxottica has a global retail organization to support its sun and luxury retail brands including Sunglass Hut, ILORI and The Optical Shop of Aspen. The Sunglass Hut brand, in particular, has a global presence, namely in North America, Asia-Pacific, South Africa, Europe, Latin America and the Middle East.
The Oakley brand provides a powerful wholesale and retail (“O stores”) presence in both the performance optics and the sports channels. In its O store locations, the Group offers a variety of Oakley-branded products in addition to Oakley eyewear styles.Oakley-branded products include apparel, footwear, backpacks and accessories designed for surf, snow, golf, outdoor, motor sport, mountain bike and other athletic lifestyles. Luxottica’s distribution channels are complemented by an e-commerce component, including the Oakley, Ray-Ban and Sunglass Hut websites.
The idea for a model comes spontaneously and its realization is the fruit of consolidated experience
Design is at the focal point where vision, technology and creativity converge. Design looks at both past and future experience and must trigger a continuous process of innovation, making it a uniquely creative activity. Ever in search of innovation and originality, the designers “see” eyewear as real works of art to put on display. Driven by this “vision”, they survey the market and its famous names but draw above all on their own imagination and inexhaustible capacity to astonish every time, in every model.
Luxottica started out in 1961 as a contract manufacturer of eyewear components, with 14 employees
Product design, development and manufacturing take place in Luxottica’s six production facilities in Italy, three factories in China, one in Brazil and one facility in the United States devoted to sports and performance eyewear. Luxottica also has a small plant in India serving the local market. In 2014, the Group’s worldwide production reached approximately 83 million units.
Luxottica Group's optical retail operations are through leading brands such as LensCrafters and Pearle Vision, leaders in North America, OPSM, Laubman & Pank, which are active throughout Australia and New Zealand, and GMO in Latin America.
The Group also has a major retail presence in China, where it is a top operator in the premium eyewear market with LensCrafters.
Since the acquisition of Sunglass Hut in 2001, Luxottica has become the world leader in the sun retail business.
The wholesale distribution structure covers more than 130 countries, with nearly 50 direct operations in the major markets and approximately 100 independent distributors in other markets.
A main planning network, a global distribution presence
The Group’s distribution system is globally integrated and supplied by a centralized manufacturing programming platform.
The network linking the logistics and sales centers to the production facilities in Italy, China, the United States and Brazil also provides daily monitoring of global sales performance and inventory levels so that manufacturing resources can be programmed and warehouse stocks re-allocated to meet local market demand.
This integrated system serves both the retail and wholesale businesses and is one of the most efficient and advanced logistics system in the industry with 18 distribution centers worldwide, including 11 in the Americas, five in the Asia-Pacific region and two in Europe. There are four main distribution centers (hubs) in strategic locations serving the major markets: Sedico (Italy), Atlanta (US), Ontario (US) and Dongguan (China). They operate as centralized facilities, offering customers a highly automated order management system that reduces delivery times and keeps stock levels low.