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Luxottica

Luxottica. Case study. Luxottica. Italian company with headquarters in Milan Largest manufacturer and wholesaler of optical products in the world Own brands such as Ray-Ban, Person and Vogue, and licenses other brands including Bvlgari, Chanel, Versace and Prada. Current capabilities.

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Luxottica

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  1. Luxottica Case study

  2. Luxottica • Italian company with headquarters in Milan • Largest manufacturer and wholesaler of optical products in the world • Own brands such as Ray-Ban, Person and Vogue, and licenses other brands including Bvlgari, Chanel, Versace and Prada

  3. Current capabilities • Owns 26 brands • Huge (under 6000 stores globally – about 4000 optical stores and nearly 2000 Sunglass Hut stores – and growing (from 150 to 220 stores in Australia in three years)) • 2006 net sales were $AUD7.8 billion)

  4. Opportunities • Opportunity for vertical integration as manufacturer, wholesaler and retailer • Move into the eyewear business in the mid ’90s, buying Lenscrafters in the US • Acquired American company Sunglass Hut around 2000 • Purchased Australian company OPSM a few years back

  5. Opportunities • Huge growth in luxury good globally

  6. Challenges • Segmentation • Fragmented market in Australia • Sunglasses sold at service stations, chemists and department stores – on the streets too • Seasonal industry • Integration

  7. Goals • Enter one country a year • Categorised emerging markets into three tiers: ready now; watching; and not quite ready • Idea based on local level of sophistication

  8. Strategy • Expand the Sunglass Hut business as quickly as they can • Currently have six stores in Hong Kong, 220 in Australia and New Zealand • By December, 10 stores in Singapore • Looking at other countries

  9. Positioning • Fashion and luxury segment

  10. Sample ads

  11. Unique value propositions • Smarter value propositions • Better store environments • Better guarantees and better service • Open sales

  12. Target market • Targets people with higher disposable income • Middle/upper end of the fashion sector • Fashionable females, aged between 25 and 35

  13. Consumer behaviour • People are buying emotions • Europeans have fashion running through their veins (Everyone wants fashion) • Australian, Hong Kong and Singaporean consumers are very sophisticated in their knowledge of brands

  14. Consumer behaviour • Asians don’t wear sunglasses as much as other Western markets • For example, in Thailand, culturally, girls don’t like to cover their eyes, because it looks like they are being too confident or forward

  15. Consumer behaviour • Young Chinese wear sunglasses exclusively on their heads

  16. ROI • Met targets in the second year and exceeded in the third

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