STRATEGY

Over the years, Luxottica Group has consolidated its global leadership in the fashion and luxury eyewear industry by virtue of:

The vertical integration of design, manufacturing and distribution makes Luxottica’s business model unique in the industry. This is reflected in the Group’s success and its long-term partnerships with key fashion and luxury brands.

With its recent retail acquisitions, ongoing consolidation of its brand portfolio and wholesale distribution, and another year of strong growth, Luxottica finds itself well positioned for future growth. The strength of its brand portfolio, the very good positioning of its retail chains, the progress made by its optical business in Asia-Pacific (including its successful retail acquisitions in China) and the restructuring of Sunglass Hut in Asia-Pacific and the UK, enable Luxottica to focus its resources on the next stage of growth and consolidation.

STRATEGY

Over the years, Luxottica Group has refined its global leadership in the fashion and luxury eyewear industry to the following key components:

·             An extensive wholesale and retail distribution network, which increases its ability to understand and serve the market, from the viewpoint of both operators and consumers, while improving distribution and controlling costs;

·             A diverse brand portfolio, among the strongest and most balanced in the industry;

·             The impressive and ever-increasing quality of the final product, with a special focus on pre- and post-sale services; and

·             The efficiency and flexibility of its manufacturing structure, and its ability to quickly respond to changes in market demand.

The vertical integration of design, manufacturing and distribution makes Luxottica Group’s business model unique in the industry, as reflected in the Group’s success and its long-term partnerships with key fashion and luxury brands.

With its recent retail acquisitions, ongoing consolidation of its brand portfolio and wholesale distribution and another year of strong growth, Luxottica Group today finds itself well positioned for future growth. The successful integration of the businesses acquired with Cole National in 2004, particularly the improvement in the performance and profitability of Pearle Vision, the progress made by its optical business in Asia-Pacific and the restructuring of Sunglass Hut in the same region and the UK, as well as retail acquisitions in China, will allow the Group to focus its resources on the next stage of growth and consolidation. Outlined below are Luxottica Group’s key strategic objectives for the medium term.