ANNUAL REPORT 2004 - Luxottica Group

DISTRIBUTION
Today, Luxottica Group’s wholesale division distributes
in 120 countries. In the 28 most important markets it
operates through a direct presence with a local
subsidiary. In most of the countries where the Group
operates distribution subsidiaries, its main customers
are retailers of mid- to premium-price eyewear, such
as independent opticians, retail optical chains, stores
specializing in sunglasses and duty-free shops. In
other countries, mainly in North America, customers
also include independent optometrists and
ophthalmologists as well as major department stores.
Direct distribution operations in the key markets offer
an important competitive advantage by allowing for
consistent, close contact with retailers, maximizing the
image and visibility of Luxottica Group’s products,
closer monitoring and optimizing distribution.
Luxottica Group’s wholesale division provides
thorough marketing support, reinforcing brand image
and coordinating the presentation of its brand portfolio
at the international level.
Luxottica Group plans to further expand its distribution
network by opening new subsidiaries. In countries
where the market size does not justify the costs of a
traditional subsidiary, the prospects of opening “light”
subsidiaries or branch offices to directly control
business will be evaluated. This would in any case
ensure closer control of distribution in these markets.
DISTRIBUTION
Services and logistics
One of Luxottica Group’s greatest strengths is its
ability to offer the best pre- and post-sale service,
through a system which has been continuously
developed and perfected over time to provide its
customers with the best product, in a timeframe and
manner that best enhances its value.
The distribution system is connected at the
international level to a central production planning
function, thanks to a network that links logistics and
sales functions/outlets to the manufacturing plants.
This network allows Luxottica Group to monitor global
sales and inventory on a daily basis, adjusting the
allocation of production resources and inventory levels
based on specific market information.
This integrated system is among the fastest, most
efficient in the world. In Asia, Europe and the U.S.
centralized distribution centers have over the years
significantly improved distribution speed and
efficiency.
Luxottica Group is therefore able to provide its clients
with a highly automated system for order management
that reduces delivery times and minimizes the
inventory.
Luxottica Group is committed to continue to help its
wholesale customers grow their business, also by
focusing on manufacturing products of the highest
quality and design. The common objective is to
maximize growth opportunities for all and expand the
overall optical market.
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