Luxottica Case Study
1. Executive Summary
The eyewear industry is both a medical device industry meant to cure vision, and a high fashion industry revolving around design and fashion trends. Spectacles as we know them were invented in the early 1300s. Since then, functional tools have become much more ornate and design oriented, employing cutting edge manufacturing techniques.
Luxottica has been at the forefront of the high fashion eyewear revolution. In more than 130 countries, Luxottica is the largest eyewear manufacturer, with presence in wholesale as well as retail. In this report we analyze the company’s evolution into a leading player in the eyewear market even as others struggled. We shall try to understand how the competitive landscape is changing and how the company is coping with it. We also look at how the company has endured the economic recession and how is it positioned to take on the emerging markets such as India and China.
The Optical & Ophthalmic Industry in North America is a highly competitive industry, with a total estimated value of $26b. It is broken down into three key …show more content…
As a result, Luxottica became the world’s first significant eyewear manufacturer to enter the retail market, thereby maximizing synergies with its production and wholesale distribution and increasing penetration of its products through LensCrafters stores.
In 1999, Luxottica acquired Ray-Ban, one of the world’s best-known sunglasses brand. Through this acquisition, the Company obtained crystal sunglass lens technology and the associated manufacturing capacity, and upgraded its portfolio with brands like Arnette, REVO and Killer Loop.
After the acquisition of Ray-Ban, Luxottica engaged in powerful advertising campaigns to re-launch the brand and restore its prestige, which had waned in the 1990s.
A DECADE OF GROWTH
After quickly and efficiently integrating the businesses acquired from Bausch & Lomb, Luxottica resumed its growth across its businesses and in their respective geographical regions. Helping in this growth were new managers from the outside, especially CEO Andrea Guerra, who has led the Group since 2004, together with Leonardo Del Vecchio, who remained as