LensCrafters 2005 Annual Report Download - page 52

Download and view the complete annual report

Please find page 52 of the 2005 LensCrafters annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 158

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128
  • 129
  • 130
  • 131
  • 132
  • 133
  • 134
  • 135
  • 136
  • 137
  • 138
  • 139
  • 140
  • 141
  • 142
  • 143
  • 144
  • 145
  • 146
  • 147
  • 148
  • 149
  • 150
  • 151
  • 152
  • 153
  • 154
  • 155
  • 156
  • 157
  • 158

| 51 <
Over the years, Luxottica Group has consolidated its global leadership in the premium and luxury
eyewear industry mainly thanks to the following factors:
• An extensive wholesale and retail distribution network, which increases its ability to best understand
and serve the market, from the viewpoint of both operators and consumers, while controlling
distribution times and costs;
• A brand portfolio among the strongest and most balanced in the industry;
• The impressive and ever-increasing quality of the final product, with a special focus on pre- and post-
sale services;
• The efficiency and flexibility of the manufacturing structure, able to quickly respond to changes in
market demand.
The vertical integration of design, manufacturing and distribution makes Luxottica Group’s business
model unique in the industry, as reflected in the Company’s results and long-term partnerships with key
fashion and luxury brands.
Today, following its retail acquisitions, with ongoing consolidation of its brand portfolio and wholesale
distribution and after two years of strong growth in 2004 and 2005, Luxottica Group finds itself well
positioned to continue growing. Successful integration of the businesses acquired with Cole National
and the progress made in Asia-Pacific after attaining full control of OPSM Group will allow Luxottica
Group to focus all its resources on the opportunities ahead. Outlined below are Luxottica Group’s key
strategic objectives for the medium term.
RETAIL
NORTH AMERICA
Luxottica Group operates three of the top four optical and sun retail brands in the North American
market: LensCrafters, Pearle Vision and Sunglass Hut. In order to more fully realize the potential of these
brands, it intends to perfect their positioning in the respective segments, emphasizing the
characteristics that differentiate one from another in the eyes of the consumer, thus improving its ability
to more efficiently serve the market.
LensCrafters
Further emphasis will be placed on style and a fashion-oriented shopping environment, where
consumers can find premium products, fashion advice and the highest levels of service and speed. A
new store concept was launched in April 2006 for this purpose.
Pearle Vision
The most recognized brand in optical retail in the U.S., perceived by consumers as the brand of “trusted
eyecare”, providing eye exams of the highest standards as well as top quality eyewear. Luxottica Group
will further reinforce this exceptional level in optical care and the relationship of trust with the consumer.
Through franchising, Luxottica Group will be able to count on a network of franchise stores and work
together with franchisees to perfect a franchising model that combines the experience and expertise of
this historic U.S. optical retail brand with Luxottica Group’s unique retail know-how and quality products
and services. The Group firmly believes that the Pearle Vision brand has significant growth opportunities
in both the United States and Canada.
Sunglass Hut
Luxottica Group will continue down the same path followed in recent years, increasing the percentage
STRATEGY