eyewear industry overview by luxottica - 2010
DESCRIPTION
Global Eyewear Industry Overview by Luxottica S.p.A in 2010TRANSCRIPT
June 3rd, 2010
Eyewear Industry
Overview
Eyewear
Brand celebrationTrusted relationship
A peculiar business
Need for
reassurance
Impairment
recognition
Self
expression
vs Medical
tool
In Store
Guerriglia
Medical procedure Fashion accessory
Business drivers
• Aging in developed markets
• Growth in emerging markets
• Different penetration rates in each market; in emerging
markets, penetration rates are much lower than
improvements in disposable income:
> Average eyeglasses penetration rate is 67% in the
U.S., 35% in Europe, below 20% in Asia-Pacific
Population Geography
Eyewear industry drivers
• Plenty of significant new markets opportunities:
> New Europe + Russia
> China
> India
> Gulf
> Turkey
> Mexico
> Korea
Fashion Sector-specific
• Vertical integration:
> Frames manufacturers acquiring retailers with labs
> Lens producers acquiring labs
> Eyewear retailers strengthening their lab networks
• Consolidation:
> Market share of the US top ten optical retailers from
16.5% in 1993 to 29.2% in 2004
• Product Innovation and technology:
Frames but mainly lenses: progressive, AR
Laser surgery
• Increasing importance of fashion content in developed
markets:
> Europe and Japan have long led the way
> U.S. consumers are now discovering fashion and luxury
in increasingly larger numbers
• Booming demand for fashion from emerging markets;
for example:
> China: demand for branded optical frames is expected to
> triple in the next 5 years
> Russia: already one of the fastest growing markets for
fashion goods
Eyewear evolution
• Worldwide continuous growth of premium and luxury segments
• Massive entry of designer fashion
brands and overall explosion of total
number of brands in the category
• Eyewear key strategic lever for
luxury brands
• From pure function to fashion
accessory: new game, new rules,
new retail environment
Channels of Trade
Diversified channels of trade
• Chains (Sun and Opti)
• 3O’s
• Department Stores
• Sun Chains
• Optical Chains
• 3O’s
• Sport
• Sun Specialist
• Department Stores
Mainstream independents
Luxottica: A great evolution in distribution approach
• Traditional sales
organization by brand
• Standardized point of
sale materials
• Extensive distribution
coverage
Trend-setting independents
Mainstream independents
• Selected by location and
quality of the point of sale
• Centrally-managed
relationship
• A customized, dedicated
program of brand
visibility
Luxottica: A great evolution in distribution approach
Chains and buying
groups
Trend-setting independents
Mainstream independents
• Annual planned sales
and visibility program
• Supply chain initiatives
• Central and local key
accounts-dedicated
teams
Luxottica: A great evolution in distribution approach
Travel retail
Chains and buying
groups
Trend-setting independents
Mainstream independents
• Worldwide sales channel
management approach
with a corporate-level
dedicated team
• Promoting eyewear in a
multi-category
environment
• Tailor-made marketing
and visibility activities
Luxottica: A great evolution in distribution approach
Dept.
stores
Travel retail
Chains and buying
groups
Trend-setting independents
Mainstream independents
• Dedicated sales teams in
North America, Japan,
Europe and the Middle East
• Permanent high-quality
fixture program
• Sales associates brand-
specific training program
Luxottica: A great evolution in distribution approach
Lifestyle
Number of
doors
100,000-
140,000
Luxottica: Global coverage, selective distribution
200,000 doors worldwide, with a different distribution strategy by brand
Market coverage Distribution strategy by brand
Lifestyle
Number of
doors
100,000-
140,000
200,000 doors worldwide, with a different distribution strategy by brand
Market coverage Distribution strategy by brand
Fashion60,000-
100,000
Luxottica: Global coverage, selective distribution
Lifestyle
Number of
doors
100,000-
140,000
200,000 doors worldwide, with a different distribution strategy by brand
Market coverage Distribution strategy by brand
Fashion60,000-
100,000
Premium
Fashion
15,000-
25,000
Luxottica: Global coverage, selective distribution
Lifestyle
Number of
doors
100,000-
140,000
200,000 doors worldwide, with a different distribution strategy by brand
Market coverage Distribution strategy by brand
Fashion60,000-
100,000
Premium
Fashion
15,000-
25,000
Luxury8,000-
12,000
Luxottica: Global coverage, selective distribution
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