Luxottica’s global distribution network is one of the Group’s core strengths. It includes retail stores as well as a wholesale network of third-party stores and chains. Luxottica operates in all the world’s major markets and continues to expand in emerging markets, where it has made substantial investments over the last few years and intends to broaden and strengthen its distribution platform going forward.
|(of which 380 are franchises)|
|(of which 1 is franchise)|
|The Optical Shop of Aspen||13|
|Sunglass Hut, Sunglass Icon||1,918|
|(of which 17 are franchises)|
|“O” Stores and Vaults||178|
|GMO (including Econópticas)||474|
|“O” Stores and Vaults||8|
|(all are franchises)|
|(of which 3 are franchises)|
|(of which 2 are franchises)|
|“O” Stores and Vaults||12|
|(of which 3 are franchises)|
Africa and Middle East
|(of which 43 are franchises)|
|“O” Stores and Vaults||3|
|(of which 49 are franchises)|
|Laubman & Pank||46|
|(of which 16 are franchises)|
|(all are franchises)|
|(of which 66 are franchises)|
|“O” Stores and Vaults||47|
|(of which 19 are franchises)|
With a strong portfolio of retail brands, Luxottica is well positioned to reach every segment of the market. The Retail portfolio offers a variety of differentiation points for consumers, including the latest designer and high-performance sun frames, advanced lens options, advanced eye care, everyday value and high-quality vision care health benefits. As of December 31, 2014, Luxottica’s Retail business consisted of 6,471 stores and 613 franchised locations.
Luxottica’s retail stores sell not only prescription frames and sunglasses that the Group manufactures but also a wide range of prescription frames, lenses and ophthalmic products manufactured by other companies. In 2014, net sales comprising Luxottica’s proprietary and licensed brands represented approximately 89% of the total net sales of frames by the Retail division.
RETAIL 2014 - NET SALES BY GEOGRAPHIC AREA
Nearly 50 Countries
MIDDLE EAST AND AFRICA
United Arab Emirates
The Wholesale distribution structure covers more than 130 countries, with approximately 50 commercial subsidiaries in major markets and approximately 100 independent distributors in other markets.
Wholesale customers are mostly retailers of mid to premium-priced eyewear, such as independent opticians, optical retail chains, specialty sun retailers, department stores and duty-free shops. The Group is currently seeking to further exploit new channels of distribution, such as department stores, travel retail and e-commerce. Certain brands, including Oakley, are also distributed to sporting goods stores and specialty sport stores, including bike, surf, snow, skate, golf and motor sport stores.
In addition to giving wholesale customers access to some of the most popular brands, with a broad array of models tailored to the needs of each market, Luxottica also seeks to provide them with pre- and post sale services to enhance their business. These services are designed to provide customers with the best products in the best possible time frame.
Luxottica also maintains close contact with its distributors in order to monitor sales and the quality of the points of sale that display its products.
In 2002, Luxottica introduced the STARS program within its Wholesale division, to provide third-party customers with an enhanced service that leverages Luxottica’s knowledge of local markets and brands to deliver fresh, high-turnover products and maintain optimal inventory levels at each point of sale. By strengthening the partnership between Luxottica and its customers, this program directly manages product selection activities, assortment planning and automatic replenishment of Luxottica’s products in the store on behalf of the third-party customer, utilizing ad hoc systems, tools and state-of-the-art planning techniques. At the end of 2014, STARS served a total of over 4,000 stores in the major European markets, United States, Middle East and emerging markets.
WHOLESALE 2014 - NET SALES BY GEOGRAPHIC AREA
Oakley, Ray-Ban and Sunglass Hut 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.
Ray-Ban.com was launched in the United States in 2009 and is the place to go for a premium Ray-Ban assortment, exclusive services and a consumer experience that is unique to the brand. The path of international e-commerce expansion for the Ray-Ban brand is closely tied to Ray-Ban Remix, the online customization service which was initially launched in Europe in 2013. The success of the service led to Remix launches in the United States, Canada and China in 2014.
Oakley.com provides an e-commerce channel across multiple markets including the United States, Canada, Australia, Japan and 16 countries in Europe.
Launched in 2008, SunglassHut.com has become the digital destination for consumers looking to find the latest trends and hottest products in premium sunwear. In 2014, the UK and Brazil 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.
In 2014, Luxottica acquired glasses.com, an advanced digital player in North America’s eyewear industry. Glasses.com developed an exclusive virtual mirroring technology, accessible through smartphones or tablets, that uses a 3D image of the user’s face to allow for multiple try-on options with real likeness.
Luxottica’s e-commerce strategy is to enter 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 largest local online mall.