LensCrafters 2006 Annual Report Download - page 41

MANUFACTURING |41 <
QUALITY: A KEY ASSET
Product quality has always been Luxottica’s main focus and has led to the integration of every
phase of production. Quality is the critical factor in the premium and luxury segments for both
wholesale customers and end consumers. Quality and process control teams regularly inspect
semi-finished products during various phases of production: verifying the feasibility of a prototype
in the design phase, controlling standards across the spectrum of products during the production
phase, and subsequently checking for resistance to wear and tear and reviewing optical properties
in relation to type of use. The manufacturing processes and materials used by primary suppliers are
also controlled and certified. Thanks to ongoing verification of precision and expertise in all phases
of production, the quality of the Group’s end product is always of the highest level. The
effectiveness of this quality system is reflected by both the relationship of trust that the Group enjoys
with independent optical store operators, both large and small, and the low levels of returns.
In 2006, research and development projects in both manufacturing processes and materials
continued and included collaboration with major Italian universities. In the field of materials, the focus
was on the problem of degradability (“sfogliature”) of injection molded plastic and how to significantly
reduce waste by optimizing molding parameters. Research to achieve higher uniformity in sun lens
tinting followed two paths: collaboration with suppliers and the University of Venice in order to
develop a special colorable lacquer and the use of advanced high-pressure injection molding.
COUNTERFEITING POLICY
Luxottica Group believes that the most effective strategy to counter the widespread phenomenon of
counterfeit goods is to attack it at the source. Therefore, Luxottica will concentrate its efforts on
identifying the main flows of fraudulent goods and to organize brand protection strategies accordingly.
It has been established that most counterfeit eyewear products come from China. Luxottica Group
is therefore concentrating its efforts on constant monitoring of production sites and customs offices
in collaboration with investigation agencies and market watchdogs, such as the Administration for
Industry and Commerce (AIC), the Chinese agency responsible for business registration. This has
led to the seizure of vast quantities of counterfeit eyewear in production facilities and the
identification of the major perpetrators that export them to the West. Strict controls are also in place
in the main shopping centers in Beijing, where most of the demand from European and American
counterfeit dealers is handled.
On a parallel front, Luxottica is implementing a system of customs and market surveillance in
strategic areas, using customs control services already established by law (e.g., EC 1838/2003,
Customs authority intervention against goods suspected of intellectual property rights
infringement). The Group also lobbies government entities for their support.
In cases where Luxottica believes customs control to be inadequate against particularly large flows of
counterfeit goods, it has initiated investigation programs to identify the main suppliers and distributors.
In 2006, brand protection activities as a whole led to the seizure and destruction of over a million
pairs of counterfeit eyewear compared with 430,000 in 2005. Of that total, 350,000 came from
operations involving Chinese producers, and 500,000 from a single, highly successful operation in
July 2006, when Greek customs authorities detected large shipments of fakes from the port of
Piraeus and the Athens airport.