LensCrafters 2010 Annual Report Download - page 15

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MISSION AND
STRATEGY
Luxottica produces and distributes sun and prescription eyewear of high technical and stylistic quality to improve the
well-being and satisfaction of its customers and at the same time create value for employees and the communities in which
the Group operates.
Every collection, every pair of glasses, is the result of an ongoing process of research and development whose aim
is to anticipate and interpret the needs, desires and aspirations of consumers all over the world. The achievement of
high standards of quality reflects the Group’s strong technical and manufacturing know-how – the fruit of 50 years of
experience – and its constant commitment to technological innovation, style and design, the study of changing lifestyles
and interpretation of fashion trends.
Quality and customer satisfaction are also the objectives of the wholesale and retail distribution networks. These structures
are organized to offer high quality after-sales service that is consistent but not standardized, being specially tailored to
specific local needs.
Manufacturing excellence and the focus on service levels form just two of the strengths that Luxottica leverages to achieve
its main corporate objectives, which are customer satisfaction, the well-being of its employees and economic and social
development wherever the Group operates.
In general, the Company’s long-term strategy is to strengthen its global position and continue to grow in all its businesses,
whether organically or through acquisitions.
VERTICAL INTEGRATION
One of the competitive advantages underpinning the Group’s past and future successes is the vertically integrated
structure that Luxottica has built over the decades.
The Group’s present structure, covering the entire chain of value, is the result of a far-sighted choice made by the Company’s
founder and current Chairman, who understood the potential of the “vertical” strategy ever since deciding to make entire
frames rather than just components. Vertical integration of manufacturing was gradually accompanied by expansion of
distribution, first wholesale and, from 1995, retail, and by a key presence in the high value-added business of lens finishing.
In terms of manufacturing, the Company has, over decades, vertically integrated all the phases of the production process
to attain a level of efficiency in line with the quality of products and services it intends to offer. Direct control of the entire
production platform makes it possible to verify the quality of products and processes, introduce innovations, discover
synergies and new operating methods, and optimize times and costs.
Direct distribution thus enables Luxottica to stay in touch with end users and understand their tastes and tendencies,
and it is also perceived as a strength by the stylists and fashion houses who come to Luxottica to produce their eyewear
collections and have access to Luxottica’s global and widespread distribution.
Luxottica’s success lies in the combination of and interaction between the following factors:
MISSION AND STRATEGY
An extensive list
of owned trade names,
patents and
technology processes
A wholesale
distribution network
spanning 130 countries
A well balanced
brand portfolio
50 years of
manufacturing
experience
Strong in-house
design and product
development
Over 6,300 retail
locations worldwide
Strong
in-house lens
fi nishing capacity