LensCrafters 2008 Annual Report Download - page 13

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HISTORY |11 <
RETAIL DISTRIBUTION
In the ’90s, the Company continued to develop its distribution network by opening new commercial
subsidiaries, the Japanese Mirari being the most significant during this time period.
In 1995, Del Vecchio once again broke the mold by acquiring The United States Shoe Corporation, owner
of LensCrafters, one of North America’s largest optical retail chains. Luxottica thus became the world’s first
eyewear manufacturer to enter the retail market, thereby exploiting its synergies with its production and
wholesale distribution and boosting penetration of its products through LensCrafters stores.
RAY-BAN
In 1999, Luxottica definitively claimed global status by acquiring Ray-Ban, the world’s best known
sunglasses. Previously specializing in prescription frames, the Company thus assured itself a crystal
sunglass technology, and the manufacturing capacity to go with it, and upgraded its portfolio with brands
like Arnette, REVO and Killer Loop.
A brand that had been waning for some years but still had enormous unexpressed potential, Ray-Ban was
successfully relaunched thanks to rapid integration and a powerful advertising campaign to restore its
former prestige.
A DECADE OF STRONG GROWTH
After quickly and efficiently integrating the businesses acquired from Bausch & Lomb, Luxottica resumed
its growth across its businesses and in their respective geographical regions. Helping in this growth were
new managers from the outside, especially CEO Andrea Guerra, who has led the Group since 2004,
together with Leonardo Del Vecchio, who remained as chairman.
On the retail front, the Company became a world leader in just a few years by acquiring a number of
chains, including Sunglass Hut (2001) a leading global retailer of premium sunglasses, OPSM Group (2003),
a leading optical player in the Asia-Pacific region, and finally Cole National (2004), bringing with it one of
North America’s other leading optical retail chains, Pearle Vision, and an extensive licensed brand store
business. In 2005, the Company began its retail expansion into China, where LensCrafters immediately
became a leading brand in the high-end market. In the meantime, the Group started to expand in high
potential markets like the Middle East, South Africa, Thailand and India.
In its wholesale distribution segment, prestigious new licensing agreements were supported by an
increasing commitment to research, product quality and manufacturing excellence, while distribution
developed in the direction of customer differentiation and emerging sales channels, such as large
shopping centers and travel retail.
OAKLEY
In 2007, Luxottica acquired California-based Oakley, the world’s leading performance optical brand, for
US$ 2.1 billion. The potential of this combination is enormous: Oakley is not only a brand known and
appreciated worldwide but it also brought with it an impressive portfolio including Oliver Peoples and the
Paul Smith license, not to mention its own retail network. Rapid integration of Oakley confirmed Luxottica
as a world leader and laid the foundation for a major new process of long-term growth.