LensCrafters 2006 Annual Report Download - page 17

Over the years, Luxottica Group has refined its global leadership in the fashion and luxury eyewear
industry to the following key components:
• An extensive wholesale and retail distribution network, which increases its ability to understand
and serve the market, from the viewpoint of both operators and consumers, while improving
distribution and controlling costs;
• A diverse 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; and
• The efficiency and flexibility of its manufacturing structure, and its ability 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 Group’s success and its long-term partnerships with
key fashion and luxury brands.
With its recent retail acquisitions, ongoing consolidation of its brand portfolio and wholesale
distribution and another year of strong growth, Luxottica Group today finds itself well positioned for
future growth. The successful integration of the businesses acquired with Cole National in 2004,
particularly the improvement in the performance and profitability of Pearle Vision, the progress made
by its optical business in Asia-Pacific and the restructuring of Sunglass Hut in the same region and
the UK,as well as retail acquisitions in China, will allow the Group to focus its resources on the next
stage of growth and consolidation. Outlined below are Luxottica Group’s key strategic objectives for
the medium term.
RETAIL
NORTH AMERICA
Luxottica Group operates three leading optical and sun retail brands: LensCrafters, Pearle Vision
and Sunglass Hut. In order to expand the potential of these brands, the Group continues to work
on perfecting each brand’s positioning in its respective segments by emphasizing how each retail
brand is uniquely positioned in the eyes of the consumer, thus improving their ability to more
effectively serve the market. This process will be supported by continued major investments in the
store base, both to improve the network and to make store formats more appealing for customers
and the market.
LensCrafters
Further emphasis will be placed on a stylish and fashion-oriented shopping environment, where
consumers can find more premium products, fashion advice and the highest levels of service and
convenience. LensCrafters’ new store concept was launched in April 2006 and is producing
excellent results.
Pearle Vision
The longest-standing optical brand in the United States, Pearle Vision is again being perceived
by consumers as the brand of “trusted eyecare,” providing eye exams of the highest standards
and top-quality eyewear. Luxottica Group will further expand Pearle Vision’s high standard of
optical care and its relationship of trust with the consumer with the introduction of new
technology and advertising campaigns. Additional forms of communication will also be used to
enhance the appeal of the chain’s offerings in the eyes of the consumer. The Group firmly
believes that the Pearle Vision brand has significant growth opportunities in both the United
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