LensCrafters 2006 Annual Report Download - page 18

>18 | ANNUAL REPORT 2006
States and Canada, where the brand was strengthened in 2006 and is now the only optical chain
represented throughout Canada.
Sunglass Hut
Luxottica Group will continue along the path it has followed in recent years. The strategy will be to
increase the percentage of fashion frames sold in stores, as such frames carry higher profit margins
and stronger appeal for female consumers who typically exhibit higher frequency purchase cycles.
The brand’s positioning will also be supported through the careful location of new stores and the
ongoing store remodeling plan that will have updated approximately 85% of in-line stores by the end
of 2008.
Licensed Brands (Sears Optical, Target Optical, BJ’s Optical)
The Group recently entered this segment and immediately became its most important operator. The
segment shows significant growth potential in both quality and volume. Luxottica Group is well
positioned to serve this market with its distribution and manufacturing structures.
Lens finishing labs
Combining its broad presence in the market with additional capacity for handling lens finishing work,
Luxottica Group anticipates increasing availability of its higher-margin lens treatments to consumers
at its stores. Lens finishing labs are also expected to contribute to a reduction of the time and cost
of finishing work provided by third parties.
Managed Vision Care: EyeMed Vision Care
EyeMed Vision Care is now the one of the largest managed vision care operator in the United States.
Its ability to serve the market has increased both from a geographical standpoint and in terms of
product offerings, making EyeMed Vision Care services even more appealing for corporations and
their employees, and resulting in an increase in the number of consumers using vision benefits both
at independent and Group stores.
ASIA-PACIFIC
In this increasingly important geographical region, the Group plans to:
• Improve results through continued optimization of the retail brand positioning in the Australia and
New Zealand region, which over the last two years has reported significant growth;
• Build on the successful restructuring of Sunglass Hut’s business in the region and also explore
entry into new markets;
•Build on the successful launch in September 2006 of the LensCrafters brand in China and further
strengthen its business structure to achieve profitability in 2007; and
•Monitor markets in the region to identify further opportunities, including the Chinese market in the
medium term.
OTHER MARKETS
The Group believes it has excellent opportunities in the sun segment, where it has the advantage of
operating the only truly global brand, Sunglass Hut. In 2006, Luxottica Group announced Sunglass
Hut stores (under franchise) would open in the Persian Gulf region. It plans to continue this
expansion.