LensCrafters 2009 Annual Report Download - page 20

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BRAND
PORTFOLIO
Luxottica’s brand portfolio is one of the largest in the industry, with major global brands backed by leading
brands both at a regional level and in particular segments and niche markets. It is balanced between house
and license brands, combining the stability and volumes of the former with the prestige and high margins
of the latter.
The presence of Ray-Ban, one of the world’s best-selling brands of sun and prescription eyewear, and
Oakley, a leader in the sport and performance category, gives the portfolio a strong base, complemented
by Persol and Oliver Peoples in the high-end of the market, the Arnette and REVO brands in the sports
market, and Vogue in the fashion market.
Alongside the house brands, the portfolio has over 20 license brands, including some well known and
prestigious names in the global fashion and luxury industries. With its manufacturing know-how, capillary
distribution and direct retail operations supported by targeted advertising and experience in international
markets, Luxottica seeks to be the ideal partner for fashion houses and stylists seeking to translate their
style and values into successful premium quality eyewear collections. Luxottica differentiates each de-
signer’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.
The Luxottica portfolio is in continual evolution. Its make-up is gradually modifi ed 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. However, the long-term objectives remain the same: to focus on
leading brands, balance house and license brands, avoid brand dilution, and lengthen the average term
of licensing agreements.
During 2009, the Group renewed its partnerships with Salvatore Ferragamo, one of the oldest licenses,
dating back to 1998, Donna Karan, whose fi rst eyewear collection was launched by Luxottica in 2005, and
with Versace, extending the licenses from 2011 to 2013, from 2014 to 2019 and from 2012 to 2022, respec-
tively. In addition, an exclusive license agreement has been signed with Tory Burch, an emerging American
fashion and lifestyle brand, for the design, manufacture and worldwide distribution of prescription frames
and sunglasses under the brands Tory Burch and TT. The fi rst eyewear collection under the Tory Burch
name was launched in November 2009 and is currently distributed in the US through Tory Burch boutiques,
selected department stores and independent optical locations, as well as Luxottica’s retail chains in North
America. This collection will be extended across Europe and the rest of the world in 2011. The agreement,
which runs for six years and is renewable for an additional four, is consistent with the 10-year average dura-
tion of Luxottica’s licenses with fashion houses and stylists, allowing for improved investment planning and
greater realization of the value of collections.
Finally, the fi rst Stella McCartney sunglass collection was launched in November 2009 in Europe and the
United States.
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