LensCrafters 2011 Annual Report Download - page 41

412.7 DISTRIBUTION
The wholesale distribution structure covers more than 130 countries, with฀over฀40฀
directly฀ controlled฀ or฀ majority฀ owned฀ operations in the major
markets 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, na-
tional and regional accounts are generally managed by employees.
Customers of the wholesale business are mostly retailers of mid to premium-priced eye-
wear, such as independent opticians, prescription retail chains, specialty sun retailers, de-
partment stores and duty-free shops. In North America and other areas, the main custom-
ers also include independent optometrists, ophthalmologists and premium department
stores. The Group is currently seeking to further penetrate emerging markets and is explor-
ing new channels of distribution such as department stores, travel retail and E-commerce.
Certain brands, including Oakley, are also distributed to sporting goods stores and spe-
cialty sports stores, including bike, surf, snow, skate, golf and motor sports stores.
In addition to offering 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 products and in a time frame and manner that best serve the
Group’s customers’ needs.
Nearly a decade ago, Luxottica introduced STARS (Superior Turn Automatic Replen-
ishment System). This business unit, which is part of the Wholesale Division, provides third
party customers with an enhanced partnership service. Developed in 2002 with four stores,
originally under the name “Retail Service,” Luxottica’s STARS initiative provides manage-
ment directly by Luxottica of product selection activities, production and assortment plan-
ning and automatic replenishment of its products in the store - all of these activities were
previously managed directly by the third party customer.
By the end of 2011, STARS฀served฀a฀total฀of฀approximately฀1,700฀
stores in the major European markets, Latin America and emerging markets.
WHOLESALE