LensCrafters 2008 Annual Report Download - page 19

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BRAND PORTFOLIO
Luxottica’s brand portfolio is one of the richest and most prestigious in the industry, as its major global
brands are backed by leading brands at a regional level and in particular segments and niche markets. It
also has an optimal balancing of house and license brands, thus combining the stability and volumes
assured by the former with the prestige and high margins of the big names in fashion and luxury.
The presence of Ray-Ban, the world’s best selling brand of sun and prescription eyewear, and Oakley, an
undisputed leader in the performance category, gives the portfolio unparalleled strength. And there is also
the potential of Persol and Oliver Peoples in the high-end of the market, the relaunching of the Arnette
and REVO sport brands now in progress, and the notoriety recognition of Vogue and K&L (formerly Killer
Loop).
Alongside the house brands, which now account for over 60% of all units sold following the acquisition of
Oakley, the portfolio has over 20 license brands, including some of the best known and most prestigious
names in the global fashion and luxury industries. With its manufacturing know-how, capillary distribution
and direct retail operations supported by well-calibrated advertising and deep understanding of
international markets, Luxottica is the ideal partner for fashion houses and stylists seeking to translate their
style and values into successful premium quality eyewear collections, all the while differentiating each
designer’s offering as much as possible, meticulously segmenting it by type of customer and geographical
market, to produce a broad range of models capable of satisfying the most diverse tastes and tendencies
and to respond to the demands and characteristics of widely differing markets. Another big priority is the
continual improvement of the product mix to guarantee coverage and differentiation of the entire
premium market and minimize the risk of brand dilution.
The Luxottica portfolio is a dynamic reality in continual evolution. Its make up is gradually modified by the
acquisition of new brands, the stipulation of new licensing agreements and the renewal of existing ones
and the withdrawal of brands no longer deemed strategic, but the long-term objectives remain the same:
to focus on leader brands, balance house and license brands, avoid brand dilution, and lengthen the
average term of licensing agreements.
In 2008, the Group renewed its important partnership with Chanel, whose eyewear has always been made
by Luxottica, ever since its first licensing agreement in 1999. The new agreement will make it possible to
take up new opportunities offered by this prestige brand, whose exclusivity and positioning in the eyewear
market are guaranteed by Luxottica’s ongoing commitment. Meanwhile, the license portfolio has been
enriched by the emerging Stella McCartney brand, whose first sun collection, manufactured and
distributed exclusively by Luxottica, will be launched onto the market in summer 2009.
The Stella McCartney license, running for six years and renewable for a further five, also helped Luxottica
extend the average term of its licenses, which is now approaching ten years. Such long-term partnerships
with maisons and stylists mean improved investment planning and fuller realization of the value of
collections.
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