Business Model


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vertical integration

Product development (Design & Engineering)
Distribution Wholesale | retail
DESIGN AND PRODUCT DEVELOPMENT Design is the focal point where vision, creative inspiration and technology converge. Beginning wth the first style sketches, the idea quickly takes shape in the design and development stages. Prototype makers transform designs into one-off pieces, crafted by hand with meticulous precision and later, the mold workshop designs and assembles the equipment needed to make the components for the new model. Designers use 3D technology to print very unique objects and complex shapes, which were previously difficult to produce using traditional techniques.   At every phase of the process – from design to industrialization – Luxottica performs rigorous and accurate quality tests. Every year the Group adds approximately 1,800 new styles to its eyewear collections, each frame an expression of Luxottica’s DNA: product excellence, commitment to innovation in technologies, styles and materials and unparalleled craftsmanship.
Read more: Innovation
MANUFACTURING Luxottica’s manufacturing operations are located in Italy, China, the United States, Brazil, Japan and India. Italy, with its six Italian plants – five in the Northeastern region and one near Turin, is at the center of Luxottica’s luxury eyewear production, combining the tradition of Italian craftsmanship with the speed and efficiency of modern automation. These factories represent 43% of global production output. Over the years, the Group has consolidated its manufacturing processes and allocated specific production roles and technologies to each plant. This has enabled Luxottica to improve both the productivity and quality of its manufacturing operations. Since 1997 Luxottica has had a presence in China through the Dongguan plant in Guangdong province. In 2006, Luxottica increased local manufacturing capacity through the construction of an entirely new facility; in 2010, it began producing plastic sun lenses to be paired with frames that are manufactured in the same location. Soon after, the Company integrated a new state-of-the-art plant, primarily dedicated to frame details and decorations. The Foothill Ranch facility in California manufactures high-performance sunglasses, prescription frames and lenses and assembles most of Oakley’s eyewear products. Oakley apparel, footwear and certain goggles are produced by third-party manufacturers. Luxottica’s Campinas plant in Brazil and two small plants in Japan and India serve the local markets. Luxottica is constantly investing in R&D to improve quality, efficiency and productivity. Over the years Luxottica has progressively diversified its technology mix from traditional metal, plastic injection and acetate slabs to include aluminum, wood, die casting, fabrics, the innovative LiteForce material coming from the aerospace industry and graphene, the revolutionary material that Luxottica first introduced in the eyewear industry.
Read more: The making of eyewear
GLOBAL QUALITY To assure the same “Made in Luxottica” quality standards worldwide and continually improving every phase of the production and distribution cycles, Luxottica applies a single quality system across the Group, based on four main labs, one in Italy, one in China, one in the United States and one in Brazil. Each lab is responsible for establishing and maintaining the quality standards in the region where it is located and supports activities in engineering, production and market feedback management. All of these labs conduct the same tests using the same equipment and procedures which are developed and approved in the central Italian lab. Quality and process control teams regularly inspect semi-finished products, verifying the feasibility of prototypes in the design phase, controlling standards in both the product development and production phases, subsequently checking for resistance to wear and tear and reviewing optical properties in relation to type of use. Throughout the development process, eyewear products undergo extensive testing against standards established specifically for eyewear. These standards relate to product safety and performance and provide quantitative measures of optical quality, UV protection, light transmission and impact resistance. The manufacturing processes and materials used by primary suppliers are also controlled and certified.
LOGISTICS The Group’s distribution system, comprised of 13 distribution centers, is one of the most advanced and efficient in the industry. Globally integrated, it serves both the retail and wholesale businesses and links them to the production facilities. The system is fed by a centralized manufacturing platform that provides daily monitoring of global sales performance and inventory levels to meet local market demand. There are four main distribution hubs in strategic locations serving the Group’s major markets: Sedico (Italy) for Europe, the Middle East, Africa, select US markets and to the Group’s distribution centers in the rest of the world; Atlanta (US) for the North American market; Dongguan (China) for the Asia Pacific region and Jundiaí (Brazil) for the local market. In addition, the Sedico hub manages customized services, such as Ray-Ban Remix, providing direct global deliveries. The overall structures operate as centralized facilities under a highly automated order management system, which services other Group distribution centers and, in some markets, ships products directly to customers, thereby further reducing delivery times and keeping stock levels low.
WHOLESALE DISTRIBUTION The wholesale distribution network covers more than 150 countries, with approximately 50 commercial subsidiaries in major markets and approximately 50 independent distributors in other less developed markets. Wholesale customers are mostly retailers of mid to premium-priced eyewear, such as independent opticians, optical retail chains, specialty sun retailers, department stores, duty-free shops and online players. Certain brands, including Oakley, are also distributed to sporting goods stores and specialty sports locations. In addition to giving wholesale customers access to some of the most popular brands and models, Luxottica provides them with pre- and post-sale services to enhance their business and maintains close contact with distributors in order to monitor sales and the quality of the points of sale. RETAIL DISTRIBUTION With a strong portfolio of retail brands, Luxottica is well positioned to serve every segment of the market with a variety of differentiation points, including the latest designer and high-performance frames, innovative lens options, advanced eye care, everyday value and high-quality vision care health benefits. As of December 31, 2018, Luxottica’s retail business consisted of 7,164 stores and 1,963 franchised locations. E-COMMERCE Luxottica offers consumers around the globe a premium online shopping experience that lives up to the same high standards found at its brick and mortar locations. Oakley, Ray-Ban, Sunglass Hut, Oliver Peoples and recently added Persol and Vogue Eyewear e-commerce websites serve as important sales channels that complement Luxottica’s retail operations and wholesale distribution. The websites drive brand awareness and allow consumers to purchase products efficiently, extending superior customer service into the digital space. was launched in the United States in 2009 and is home to the most extensive assortment of premium Ray-Ban, exclusive offerings and a consumer experience that is unique to the brand. Currently, operates in 26 countries. Ray-Ban Remix, the online customization platform first launched in Europe in 2013, is a key driver of the brand's e-commerce expansion and its growing connection with millennials. Its success in allowing customers to personalize the style, material, lens color, engraving and other aspects of their Ray-Ban frames led to Remix launches in the United States, Canada and China in 2014, in Australia, Brazil, Japan and Hong Kong in 2015 and in Mexico in 2016. Recently, introduced in the U.S. a search-by-image capability, which allows fans to upload a picture of any pair of Ray-Ban frames and then search for them on the extensive Ray-Ban. com catalogue. provides a digital window into the Oakley brand, presenting the most comprehensive assortment of Oakley products globally and an e-commerce channel across multiple markets including the United States, Canada, Australia, Japan, Brazil and 16 countries in Europe. Its online custom eyewear experience gives Oakley fans the ability to customize their favorite models from Jawbreaker to Frogskins, selecting frame color, lens tint, personalized etching and other features seamlessly. Launched in 2008, has become the digital destination for consumers looking to find the latest trends and hottest premium sunglasses. Over the years, the United Kingdom, Brazil, New Zealand and Mexico joined the United States, Canada and Australia in offering online shopping on their local Sunglass Hut websites. Additionally, Sunglass Hut redesigned its mobile and desktop sites across all countries to enhance customer experiences, storytelling and business performance. Specific focus has been given to the implementation of omnichannel experiences that allow the Company to seamlessly engage consumers across more than 3,000 Sunglass Hut stores and the website. Luxottica introduced the new Persol and Vogue Eyewear e-commerce platforms at the end of 2017 in Italy, the United Kingdom, France, Germany and Spain, followed by the U.S. and Canada in 2018. Oliver Peoples is also operating in these same countries. Luxottica plans to bring its e-commerce strategy to additional markets as the business matures. For example, the Group formed strategic partnerships in China to open both Ray-Ban and “O” stores within Tmall, the world’s largest local online mall. Luxottica is also investing in increasing its optical e-commerce footprint, with a wide portfolio of brands and solutions that cover vision correction needs, including clear and sun prescription frames and contact lenses.

our business model

One of the competitive advantages underpinning Luxottica’s past and future successes is the vertically-integrated business model that the Group has built over the decades. Luxottica’s Founder and Executive Chairman, Leonardo Del Vecchio, understood the potential of vertical integration early on. He made a visionary choice to begin producing entire frames rather than just components. Vertical integration of manufacturing was gradually accompanied by the expansion of distribution, starting with wholesale and later on, with retail and a key presence in the high value-added business of lens finishing.

Oversight of the entire production process makes it possible for Luxottica to guarantee and verify the highest level of quality across its products and processes – this is the “Made in Luxottica” standard you will find at every one of the company’s facilities around the world.  This 360 degree view of everything from design to distribution gives the company a unique understanding of consumer trends and tastes, welcomes synergies and encourages cross-functional innovation. These advantages of a vertically-integrated model have been key in attracting the most prestigious fashion houses to Luxottica’s portfolio.

Last updated: Mar 16 2021