Vertical Integration

One of the competitive advantages underpinning the Group’s past and future successes is the vertically integrated structure that Luxottica has built over the decades.

The Group’s present structure, covering the entire chain of value, is the result of a far-sighted choice made by the Company’s founder and current Chairman, who understood the potential of the “vertical” strategy ever since deciding to make entire frames rather than just components. Vertical integration of manufacturing was gradually accompanied by expansion of distribution, first wholesale and, from 1995, retail, and by a key presence in the high value-added business of lens finishing.

In terms of manufacturing, the Company has, over decades, vertically integrated all the phases of the production process to attain a level of efficiency in line with the quality of products and services it intends to offer. Direct control of the entire production platform makes it possible to verify the quality of products and processes, introduce innovations, discover synergies and new operating methods, and optimize times and costs.

Direct distribution thus enables Luxottica to stay in touch with end users and understand their tastes and tendencies, and it is also perceived as a strength by the stylists and fashion houses who come to Luxottica to produce their eyewear collections and have access to Luxottica’s global and widespread distribution.