LensCrafters 2009 Annual Report Download - page 25

Download and view the complete annual report

Please find page 25 of the 2009 LensCrafters annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 128

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128

23 <
DISTRIBUTION
Luxottica operates in all the world’s major eyewear markets and continues to expand in emerging markets,
where it has made substantial investments in the last few years and intends to expand and strengthen its
distribution platform.
Direct distribution makes it possible to maintain close contact with clients and maximize the image and
visibility of Luxottica 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 eyewear markets. All this
makes it possible, among other things, to achieve tight control and strategic optimization of brand diffu-
sion, both house and license.
Luxottica’s distribution structure is one of the Group’s main strengths. It is global, embracing retail stores
and serving a wholesale distribution network of third party stores and chains.
WHOLESALE
The distribution structure covers more than 130 countries, with over 40 direct operations in the major mar-
kets and approximately 100 independent distributors in other markets. Each wholesale subsidiary operates
its own network of sales representatives who are normally retained on a commission basis. Relationships
with large international, national and regional accounts are generally managed by employees.
Customers of the wholesale business are mostly retailers of mid- to premium-priced eyewear, such as
independent opticians, optical retail chains, specialty sun retailers and duty-free shops. In North America
and some other areas, the main customers also include independent optometrists, ophthalmologists and
premium department stores.
Certain brands including Oakley are distributed also to sporting goods stores and specialty sports stores,
including bike, surf, snow, skate, golf and motor sports stores.
In addition to making some of the best brands, with a broad array of models tailored to the needs of each
market, Luxottica also seeks to provide its wholesale customers with pre- and post-sale services to enhance
their business. These services are designed to provide customers with the best product and in a time frame
and manner that best serve the Group's customers’ needs.