Annual Review 2012 - Luxottica

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ANNUAL REPORT 2012
Organizational developments
The results achieved in 2012 reflect the Group’s continued efforts in developing distinctive
capabilities and adopting innovative organizational solutions, throughout the entire value
chain.
Wholesale
During 2012 the Wholesale Division continued its focus on research for “simple and fast”
operational procedures.
Brazil and Asia-Pacific have been, in particular, two areas subject to major organizational
development projects. In Brazil, through the integration of the Tecnol group, Luxottica is
poised to take advantage of its local manufacturing, sales and distribution platforms in this
significant market for the Division.
As for Asia-Pacific, organizational investments focused on establishing of a shared service
center in Singapore that would support local markets and on the strengthening of the sales
organizations in relevant countries such as Malaysia, Indonesia, Thailand and Vietnam that
already today offer unique growth opportunities.
Retail
For the retail organizations, 2012 was a year of further expansion in the highest growth
rate geographies. In particular, the focus was on the development of the optical and
sun stores network in central and South America and their integration in the Group
distribution platform. As for the Retail optical network, during 2012 the integration
of Multiopticas Internacional into Luxottica’s organization was completed. As for the
Retail sun, again in Latin America, Luxottica completed the integration of a chain of
stores operating in Mexico acquired in 2011 and pushed for an acceleration of Sunglass
Hut entry plans in the region. Lastly, Europe saw the important acquisition in the Iberia
region of the Sun Planet store chain (120 stores) effectively integrated in the second half
of the year.
Operations
The Operations team during 2012 further strengthened its operational platform with the
full management integration of all regional organizations, both in manufacturing and
logistics, including in Brazil.
The organizational and management program launched in 2011 produced significant
results in the following areas in 2012:
• improvement of the production planning processes;
• reduction of collections development, manufacturing and distribution lead time;
• continuous improvement of product and process quality;
• commercial planning and warehouse management.