Annual Review 2012 - Luxottica

62 ANNUAL REview 2012
Prospects
for development
2012 results testify to Luxottica’s growth trend with the highest net sales results recorded in
the Group’s history and a more than proportional increase in profitability. Both the wholesale
and retail divisions contributed to these results, thanks to the excellent performance of the
business in all of the countries in which the Group operates.
Luxottica’s positive performance demonstrates that it has a strong and solid business
model in an extremely challenging economic environment and it is positioned to capture
the excellent growth opportunities offered, especially in the emerging markets. The Group
is in a position to seize the opportunities of further development offered by the eyewear
industry, a sector that stands out for its dynamism, high potential and new distribution
channels.
In particular, looking at global socio-economic trends, certain fundamental drivers emerge,
including demographic changes, penetration of eyewear in both developed and emerging
markets and a shift in demand towards premium and luxury brands, especially in the socalled
“gateways” and mega-cities and urban regions, and high potential channels such
as travel retail and department stores.
Demographic
trends
In the next decade, approximately 500 million additional individuals will be characterized
as vision correction wearers and a total of 4.8 billion individuals will continue to require
some form of vision correction aid according to current industry estimates.
Luxottica is positioned to capitalize on these trends, with its vertically integrated business
model and geographic diversification, and it will continue to invest by expanding its
specialty store chains internationally in both the optical (LensCrafters and OPSM, in
particular) and sun segments (Sunglass Hut), in which it is already a leader.
Emerging
markets
Growth opportunities in emerging markets are based on the greater purchasing power of
the upper-middle class, the proliferation of luxury stores and the increased availability and
rising consumer recognition of premium and luxury brand culture.
Emerging markets made an important contribution to Luxottica’s 2012 full-year results,
with net sales up by 26% over the 2011 figures at constant exchange rates.
Luxottica believes it is on a path to continue this impressive trend through continued
investments in people and brands, as well as through acquisitions and investments aimed
at expanding existing retail channels.
In particular, Luxottica is focusing on markets in South-East Asia, specifically in Indonesia
and Thailand, where it plans to develop a direct presence.