LensCrafters 2013 Annual Report Download - page 31

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9. 2014 OUTLOOK
The Group operates in an industry with significant opportunities for growth. The groundwork laid in the last few years is the
foundation upon which the Group expects to continue increasing its net sales performance and improving profitability.
Looking forward, the Group’s main drivers include its strong brand portfolio, continuing investments in the optical business
(supporting growth in mature markets), global expansion of new sales channels and the continuous penetration of emerging
markets.
New way to look at the world
The urbanization process continues non-stop all over the world and is a driver in a complex international economic
environment. Today, urbanization is quick and massive. The Group is looking at so-called “megacities” as a great
opportunity for future growth. The Group has also identified 50 “getaways cities” which are scattered throughout the five
continents for expansion of our retail and wholesale channels.
Emerging markets
An increase in disposable income of the mid-upper class, an increased number of luxury stores and brand recognition
represent Group opportunities in the emerging markets. In 2013 the Group’s performance in the merging markets was strong
with an increase in net sales of more than 20% as compared to 2012 at constant exchange rates.
In 2014, the Group forecasts that this trend should continue and is seeking more favorable results through its investment in
people and brands and the expansion of the retail channel by leveraging existing market structures or acquiring new chains.
The Group is particularly focused on markets in Southeast Asia where the eyewear market is still new. Once a wholesale
subsidiary in Thailand is established, the Group will increase its presence in the region, in particular, in Indonesia and
Malaysia.
Customer-oriented organization
Becoming a customer-oriented organization means gaining a better understanding of the entire sector and concentrating more
efficiently on investments. The activity of gathering and analyzing information on consumers’ behaviors is aimed at
improving the clients’ experience and fostering long-term relationships.
New sale channels
New sales channels continue to represent an important driver for the Group’s growth. The department stores, travel retail and
the e-commerce, defined as a few of the fastest growing channels, are enhancing their presence throughout markets.
In particular, the department stores remain the landmark for consumers in the sun premium segment and offer great
opportunities for growth. Travel retail keeps growing in line with the heightened mobility of consumers and captures their
demand while laying over in airports. E-commerce offers the possibility to interact better with consumers while developing
their knowledge of the Group’s brands and responding more quickly to the needs of those customers interested in buying our
products.