The Italian company Luxottica Group SPA practically took over the whole market of optics production to its distribution and sales.
Luxottica produces about 46600000 pairs of sunglasses and frames 26100000 for the installation of medical lenses and sells them worldwide through its 7,000 retail outlets that operate under the names Sunglasses Hut, Pearle Vision b LensCrafters. The company also sells its products through a third party and: department stores, duty-free shops and sporting goods stores for its brand Oakley. This is not a bad business: the share of the total market points was estimated at 81 billion dollars in 2011 and is expected to reach 130 billion by 2018.
The band Luxottica increased net sales by 36% compared with 2008 to 9.4 billion dollars in 2012. In 2011, net sales amounted to 8.2 billion dollars. Net profit also rose sharply by 39% in 2008 to 716 million dollars in 2012. Luxottica shareholders also good money, because its shares have risen by an impressive 114% over the past five years.
How Luxottica started out? With a very small Milan company in 1961 to manufacture and sell frames and optical products. By 1971, the company was able to produce glasses already on a full cycle, then the company has released its first collection points. Today, not only is the largest producer of optics, but also carries out vertical integration, which is expressed in complete control of trade flows from the purchase of raw materials to the sale of products through their stores to the final consumer.
Luxottica Group owns a number of brands including Ray-Ban, which was acquired in 1999, the Oakley, who was acquired in 2007, as well as Vogue, Oliver Peoples, Persol, Alain Mikli, Arnette and REVO. These own brands generate 70% of total sales, and such brands as Ray-Ban and Oakley make up almost 45% of sales. In addition Luxottica Group has licensing agreements with many designer brands including Bulgari, Burberry, Chanel, Coach, Dolce & Gabbana, Donna Karan, Paul Smith, Polo Ralph Lauren, Prada, Stella McCartney, Tiffany, Tory Burch, Versace and Armani. Agreements with these brands are exclusive, which means that no other manufacturer can make the glasses under the brand name, which makes Luxottica, all such contracts the company signs a duration of three to ten years.
In his letter to shareholders, chairman and founder Leonardo Del Vecchio said that the company is making a big push in emerging markets, particularly in South Asia. The company's goals is the double-digit growth in the luxury and premium segment segment.