This excerpt taken from the LUX 6-K filed Jun 4, 2008.
(**) The licence agreement ends in March 2008.
The Groups wholesale distribution network covers more than 130 countries, with directly controlled operations in its key 44 markets, where clients are mostly retailers of mid- to premium-price eyewear, such as independent opticians, optical retail brands, specialty sun retailers and duty-free shops. In North America and other areas, key clients also include independent optometrists and ophthalmologists and premium department stores. Direct distribution in the key markets gives Luxottica Group a considerable competitive edge, making it possible to maintain close contact with clients, maximize the image and visibility of the Groups brands and optimize distribution.
In addition to making some of the best brands, with a broad array of models tailored to the needs of each market, Luxottica also provides its wholesale clients with the assistance and services needed to enable their business to be successful.
One of Luxottica Groups main strengths is its ability to offer pre- and post-sale services which have been developed and continuously improved over decades. These high-quality services are designed to provide customers with the best product and in a timeframe and manner that most enhance their value. The distribution system is connected at the international level to a central production planning function through a network linking logistics and sales functions and outlets to the manufacturing plants in Italy and China. Through this network, global sales and inventory are monitored daily and, based on the information from the market, production resources and inventory levels are adjusted. This integrated logistics system is one of the most efficient and fastest in the industry. In Asia, Europe and the United States, centralized distribution centers have over the years significantly improved distribution speed and efficiency. Luxottica Group is thus able to provide its clients with a highly automated system for order management that reduces delivery times and minimizes inventory, while providing high-quality products.