LensCrafters 2005 Annual Report Download - page 46

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DISTRIBUTION | 45 <
DISTRIBUTION
Today, Luxottica Group’s wholesale division distributes in 130 countries. In the 38 most important
markets it operates through a directly controlled subsidiary. In most of the countries where the Group
operates distribution subsidiaries, its main clients are retailers of mid- to premium-price eyewear:
independent opticians, optical retail brands, specialty sun retailers and duty-free shops. In other
countries, and particularly in North America, main clients also include independent optometrists and
ophthalmologists and high-end and other major department stores. Direct distribution operations in the
most important markets bring a considerable competitive edge by allowing close contact with retailers,
maximizing the image and visibility of Luxottica Group products, and improved, more closely monitored
distribution. The Group provides its wholesale division with thorough marketing and PR support,
reinforcing brand image and coordinating the presentation of its brand portfolio at the international level.
Luxottica Group plans to expand its distribution network over time by opening new subsidiaries. In
countries in which the market is not big enough to justify the costs of a traditional subsidiary, the
prospects of opening a representative office capable of directly and efficiently overseeing the business
will be evaluated.
Another of Luxottica Group’s main strengths is its ability to offer top pre- and post-sales service through
a system which has been continuously developed and perfected over decades to provide customers
with the best product and in a timeframe and manner that best enhances its value. The distribution
system is connected at the international level to a central production planning function through a network
linking logistics and sales functions/outlets to the manufacturing plants in Italy and China. This network
provides daily monitoring of global sales and inventory for the purpose of adjusting production
resources and inventory levels on the basis of specific information from the market. This integrated
logistics system is one of the most efficient and among the fastest in the industry. In Asia, Europe and
the United States centralized distribution centers have over the years significantly improved distribution
speed and efficiency.
Luxottica Group is thus able to provide its clients with a highly automated system for order management
that reduces delivery times and minimizes inventory. The Group is committed to continuously helping its
clients grow their business, also by focusing on products of the highest quality and design, the
common aim being to maximize growth opportunities and expand the overall size of the eyewear market
for mid- and premium-price products.