LensCrafters 2007 Annual Report Download - page 28

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| 27 <
THE GROUP’S
BRANDS
Luxottica Group has one of the strongest and most balanced brand portfolios in the industry
thanks to focused efforts in recent years (new brands, renewal of major agreements and
termination of others no longer part of the core business). It offers a broad range of models
capable of satisfying the most diverse tastes and tendencies and is able to respond to the
demands and characteristics of widely differing markets. The Group successfully reconciles the
desire for style with complex and highly-structured manufacturing systems, without compromising
product quality. With its distribution capacity, direct operations in markets, marketing support and a
keen understanding of the international marketplace, Luxottica is the ideal partner for brands
seeking to translate their style and values into successful, high-quality eyewear collections.
The Group’s license brands, which includesome of the best-known fashion houses and
international designers, are under exclusive license agreements with a typical duration
approaching ten years. These long-term relationships translate into improved investment planning
and fuller realization of the value of collections.
The exclusive licensing agreement with Tiffany & Co., marking the famous luxury brand’s debut in
the eyewear market, was a natural next step after completing deals Polo Ralph Lauren in 2006,
Burberry in 2005, Donna Karan and Dolce & Gabbana in 2004, a renewal with Bvlgari and Chanel
in the same year and agreements with Versace and Prada in 2003.
In 2007, agreements with Byblos, Genny, Moschino, and Sergio Tacchini 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, it also
has a portfolio of house brands, balancing its license brands, including Arnette, Oakley (the
world’s best brand for performance), Persol, Ray-Ban (the world’s best-selling sun and prescription
brand), Revo, and Vogue. Due to highly effective excellent brand identity promotion, sales of house
brands have been extremely positive and provide an important balancing effect on the overall
portfolio. With its own distribution, retail organization and advertising budget, Luxottica is perfectly
placed to support and develop its collections.