LensCrafters 2014 Annual Report Download - page 40

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2.6
Luxottica’s global distribution network is one of the Group’s core strengths.
It includes retail stores as well as a wholesale network of third-party
stores and chains. Luxottica operates in all the world’s major markets and
continues to expand in emerging markets, where it has made substantial
investments over the last few years and intends to broaden and strengthen
its distribution platform going forward.
Luxottica’s efficient distribution network makes it
possible to maintain close contact with customers
while maximizing the visibility of the Group’s brand
portfolio. In addition, the Group’s experience in the
retail business has given it a unique understanding of
consumer needs and tastes in certain key countries.
All of this makes it possible to achieve tight control
and strategic optimization of brand diffusion, for
both proprietary and licensed brands.
Wholesale
The wholesale distribution structure covers more than
130 countries, with approximately 50 commercial
subsidiaries in major markets and approximately 100
independent distributors in other markets.
Wholesale customers are mostly retailers of mid
to premium-priced eyewear, such as independent
opticians, optical retail chains, specialty sun retailers,
department stores and duty-free shops. The Group
is currently seeking to further exploit 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 specialty sport stores, including bike, surf, snow,
skate, golf and motor sport stores.
In addition to giving wholesale customers access
to some of the most popular brands, with a broad
array of models tailored to the needs of each market,
Luxottica also seeks to provide them with pre- and
post sale services to enhance their business. These
services are designed to provide customers with
the best products in the best possible time frame.
Luxottica also maintains close contact with its
distributors in order to monitor sales and the quality
of the points of sale that display its products.
In 2002, Luxottica introduced the STARS program
within its Wholesale division, to provide third-party
customers with an enhanced service that leverages
Luxottica’s knowledge of local markets and brands
to deliver fresh, high-turnover products and maintain
optimal inventory levels at each point of sale. By
strengthening the partnership between Luxottica
and its customers, this program directly manages
product selection activities, assortment planning
and automatic replenishment of Luxottica’s products
in the store on behalf of the third-party customer,
utilizing ad hoc systems, tools and state-of-the-art
planning techniques. At the end of 2014, STARS
served a total of over 4,000 stores in the major
European markets, United States, Middle East and
emerging markets.
Distribution
2014 ANNUAL REVIEW
38