LensCrafters 2012 Annual Report Download - page 21

192.2 MISSION AND STRATEGY
development of its manufacturing capacity, it started to pursue a strategy of vertical
integration, with the goal of distributing frames directly to the market. The first step was
the acquisition of Scarrone S.p.A., which had marketed the Company’s products since 1971
bringing with it a vital knowledge of the Italian eyewear market.
Luxottica’s international expansion began in the 1980s with the acquisition of independent
distributors and the formation of subsidiaries and joint ventures in key international
markets.
Luxottica’s wholesale distribution expansion has focused on customer differentiation,
customized service and new sales channels, such as large department stores, travel retail
and e-commerce, as well as penetration in the emerging markets.
> EYEWEAR, A NEW FRONTIER OF FASHION: the acquisition of La Meccanoptica
Leonardo 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 instruments,
began to evolve into “eyewear.” Continual aesthetic focus on everyday objects and
designers’ interest in the emerging accessories industry led Luxottica to embark on its first
collaboration with the fashion industry in 1988 by entering into a licensing agreement with
Giorgio Armani. The Company followed up that initial collaboration with numerous others
and with the acquisition of new brands, gradually building the current world-class brand
portfolio and thereby increasing its commitment to research, innovation, product quality
and manufacturing excellence.
Over the years Luxottica has launched collections from names like Bulgari (1997), Chanel
(1999), Prada (2003), Versace (2003), Donna Karan (2005), Dolce & Gabbana (2006), Burberry
(2006), Polo Ralph Lauren (2007), Tiffany (2008), Stella McCartney (2009), Tory Burch (2009),
Coach (2012) and Armani (2013).
In addition, Luxottica acquired Ray-Ban in 1999, one of the world’s best-known sunglasses
brands. Through this acquisition, the Company obtained crystal sun lens technology as
well as the associated manufacturing capacity and added to its portfolio the Arnette,
REVO and Killer Loop brands.
In 2007, Luxottica acquired California-based Oakley, a leading sport and performance
brand, which owned the Oliver Peoples brand and a license to manufacture and distribute
eyewear under the Paul Smith name. Oakley also had its own retail network at the time of
over 160 stores.
In the first quarter of 2013, Luxottica acquired Alain Mikli International, a French luxury
and contemporary eyewear company, which owns the Alain Mikli brand and the Starck
Eyes license. As a result, Luxottica will strengthen both its luxury brand portfolio and
prescription offerings, which now include Alain Mikli’s distinctive designs.
> EXPANSION IN RETAIL DISTRIBUTION: in 1995, Luxottica acquired the United States
Shoe Corporation, which owned LensCrafters, one of North America’s largest optical retail