LensCrafters 2008 Annual Report Download - page 26

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Luxottica Group’s distribution structure, unparalleled in the industry, is one of the Group’s most important
competitive advantages. It is one of the most extensive and effective in the industry, embracing retail
stores and serving a wholesale distribution network of third party stores and chains.
The distribution structure covers more than 130 countries, with directly controlled operations in the main
markets. Customers are mostly retailers of mid- to premium-priced eyewear, such as independent
opticians, optical retail brands, specialty sun retailers and duty-free shops. In North America and other
areas, the main customers also include independent optometrists and ophthalmologists and premium
department stores.
Direct distribution in the key markets gives the Group a considerable competitive edge, making it possible
to maintain close contact with customers and maximize the image and visibility of the Group’s brands.
Further, the Group’s experience in direct operation of stores in certain of its more important countries has
given it a unique understanding of the world’s optical markets. All this makes it possible to achieve tight
control and strategic optimization of both house and licensed brands.
In addition to making some of the best brands, with a broad array of models tailored to the needs of each
market, Luxottica also provides its wholesale customers with the assistance and services needed to enable
their business to be successful.
One of Luxottica Group’s main strengths is its ability to offer pre- and post-sale services which have been
developed and continuously improved over decades. These high-quality services are designed to provide
customers with the best product and in a timeframe and manner that best enhance their value.
The distribution system is connected at the international level to a central production planning function
through a network linking logistics and sales functions and outlets to the manufacturing plants in Italy and
China. Through this network, global sales and inventory are monitored daily so that production resources
and inventory levels can be adjusted in response to information from the market.
This integrated logistics system is one of the most efficient and fastest in the industry. In Asia, Europe and
the United States, orders are processed by centralized centers that significantly improve distribution speed
and efficiency.
Luxottica Group is thus able to provide its customers with a highly automated order management system
that reduces delivery times and minimizes inventory.
WHOLESALE
DISTRIBUTION
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