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Look east

Luxottica makes sunglasses. It is an Italian company and 85% of its factories are in Italy. But less than 5% Luxottica’s sales are in its home country. Most of Luxottica’s shops are in the USA. The company produces glasses for Channel, Prada, Bulgari and other companies selling luxury goods. It also owns Ray-Ban.

Luxottica’s main competitor is Safilo, another Italian glasses manufacturer. The big difference between Luxottica and Safilo is that Safilo has 50 shops and Luxottica has nearly 5,500 shops.

Luxottica started as a manufacturing company. Today, they make more money from retail than from manufacturing. They specialize in glasses that cost £50 or more. This market is ten times more profitable than the market in cheap glasses. The company has two big challenges in future. The first challenge is China. At the moment, Luxottica has 250 shops there. But the company wants to double the number of shops to 500. The second challenge is the next chairperson. The company’s founder is 70-year-old Mr. Del Vecchio. At the moment, he is the chairperson and he owns 70% of the company. It is a family company, but Mr. Del Vecchio’s four children don’t work for Luxottica. A new chairperson could make changes that run Luxottica from a family company into a multinational company.

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