LensCrafters 2006 Annual Report Download - page 23

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|23 <
THE GROUP’S
BRANDS
Luxottica Group today has one of the strongest and most balanced brand portfolios in the industry
thanks to the ongoing development of its portfolio in recent years, through the signing of new
brands, renewal of major agreements and termination of others. With 19 licensed brands and eight
house brands, the Group offers a broad range of models capable of satisfying the most diverse
tastes and has the ability to respond to the changing demands and characteristics of each market.
The Group successfully reconciles the desire for style with complex and highly-structured
manufacturing systems, without compromising product quality. With its outstanding distribution
capacity, direct operations in many markets, marketing support and a keen understanding of the
international marketplace, Luxottica Group is the ideal partner for brands seeking to translate their
style and values into successful, high-quality eyewear collections.
The Group’s license brands, including some of the best-known fashion houses and international
designers, are under exclusive license agreements with a typical duration of nearly ten years. These
long-term relationships translate into improved investment planning and fuller realization of the
value of collections.
The exclusive license agreement entered into with Tiffany & Co. in 2006, which marked the famous
luxury brand’s debut in the eyewear market, further strengthens the Group’s portfolio. The Tiffany &
Co. agreement follows those with Burberry and Polo Ralph Lauren in 2005, Donna Karan and Dolce
&Gabbana in 2004, renewals with Chanel and Bvlgari during 2004 and agreements entered into
with Versace and Prada in 2003. In 2006 and early 2007, agreements with Sergio Tacchini, Byblos
and Moschino reached the end of their scheduled terms.
Luxottica Group continuously focuses on improving product assortments in the mid, premium and
luxury segments while systematically guarding against brand dilution.
Unique in the industry, Luxottica Group has in its portfolio eight strong house brands, including
Vogue, Persol, Arnette, Revo and Ray-Ban, the world’s best-selling eyewear brand. The house
brands, particularly Ray-Ban, have strong brand names, due to the Group’s excellent work on
promoting their brand identities. Sales of house brands have been extremely positive and provide
an important balancing effect on the overall portfolio. With its own distribution and retail sales
structures and investments in advertising, Luxottica Group is able to effectively and efficiently
develop and support collections.