LensCrafters 2011 Annual Report Download - page 21

192.2 MISSION AND STRATEGY
> EYEWEAR, A NEW FRONTIER OF FASHION: the acquisition of La Meccanoptica Leon-
ardo, in 1981, the owner of the Sferoflex brand and an important flexible hinge patent,
enabled the company to enhance the image and quality of its products and increase its
market share.
From the late 1980s, eyeglasses, previously perceived as mere sight-correcting instru-
ments, began to evolve into “eyewear.” Continual aesthetic focus on everyday objects
and interest on the part of designers in the emerging accessories industry led Luxottica to
embark on its first collaboration with the fashion industry in 1988 by entering into a licens-
ing agreement with Giorgio Armani. The Company followed up that initial collaboration
with numerous others, gradually building the current world-class brand portfolio.
In addition, Luxottica acquired Ray-Ban in 1999, one of the world’s best-known sunglass
brands. Through this acquisition, the Company obtained crystal sunglass lens technol-
ogy and associated manufacturing capacity and enhanced its portfolio with brands like
Arnette, REVO and Killer Loop.
In 2007, Luxottica acquired California-based Oakley, a leading sport and performance
brand, with the Oliver Peoples brand and a license to manufacture and distribute eyewear
under the Paul Smith name. Oakley also had its own retail network of over 160 stores.
> EXPANSION IN RETAIL DISTRIBUTION: in 1995, Luxottica acquired the United States
Shoe Corporation, which owned LensCrafters, one of North America’s largest optical retail
chains. As a result, Luxottica became the world’s first significant eyewear manufacturer to
enter the retail market.
Since 2000, Luxottica has strengthened its retail business by acquiring a number of chains,
including Sunglass Hut (2001), a leading retailer of premium sunglasses, OPSM Group
(2003), a leading optical retailer in Australia and New Zealand and Cole National (2004),
which brought with it another leading optical retail chain in North America, Pearle Vision,
and an extensive Licensed Brands store business (Target Optical and Sears Optical). In
2005, the Company began its retail expansion into China, where LensCrafters has since
become a leading brand in the country’s high-end market. In the same year the Group also
started to expand Sunglass Hut globally in high-potential markets like the Middle East,
South Africa, Thailand, India, Philippines and Latin America. In 2011 Luxottica strength-
ened its presence in Latin America by acquiring the remaining stake it did not already own
of Multiopticas Internacional and expanding Sunglass Hut in Mexico and Brazil.
During this time, the Group entered into new licensing agreements and supported the
brands it had acquired with an increasing commitment to research, innovation, product
quality and manufacturing excellence, while continuing to focus distribution expansion on
customer differentiation and emerging sales channels, such as large department stores,
travel retail and E-commerce.