Lux in China..........................

**Chris Ryser** · 11-05-2005, 03:39 AM

MILAN--After acquiring two optical retail chains in China in recent months, Luxottica Group (NYSE: LUX) plans to unify them under a singleretail brand name. Luxottica operates 278 optical stores in mainland China and Hong Kong under the names The Optical Shop, Xueliang Optical (acquired in July) and Ming Long Optical (acquired in October).

**JERRY HUANG** · 11-06-2005, 02:41 PM

Bad mistakes from Luxs!

**DocInChina** · 11-06-2005, 05:24 PM

Originally Posted by JERRY HUANG

Bad mistakes from Luxs!

I would tend to agree if they were planning on running the mainland Chinese shops with their personnel. Lux has been conducting business in China (manufacturing) and I think they have experienced what it is like here. Their purchase of Ming Long Optical was interesting to me. I was under the impression that most of Ming Long shops were franchises. In anycase mainland China is very brand conscious so Lux will have a good opportunity to sell alot of its product. Since their is a 45% import duty for eyewear brought into China I suspect that they will be manufacturing more of their brands in the mainland that will be sold in the mainland.

DocInChina

**walleye** · 11-06-2005, 06:23 PM

45% import duty on frames into China? And here in the US we give them "most favored nation" status with 0% duty and ruin the American frame industry-go figure. (It used to be 0% years ago that ruined the industry-not sure what the duty is today if any).

**JERRY HUANG** · 11-06-2005, 06:29 PM

8 to 12% of custom duty for plastic frames imported from China. 4% of duty for metals.

**JERRY HUANG** · 11-06-2005, 07:11 PM

I really disagree with the word "ruin" here!

Most US frame manufacturers don't make frames here because they cannot compete the price from cheaper labor countries. However, frames made by overseas do benefit thousands of optical business and opticians in this country becuase they do offer products in better price to end users. I am sure majority of optical retail business will need to close their business if they are only allowed to sell 100% American made products and end up nothing is affordable!

American are still the biggest winner in the world because you swap the title from "manufacturer" to "wholesaler". A $5 cheapie made in China jumps up to double digit number easliy by adding up an American created image(logo)/trade mark. Why bother to invest millions of dollars of equipment and hire thousands of labor?? Even the closed out products from this country are still worth more money compare to fresh made ones from China! To me, none of the Chinese frame manufacturers have ever been smart....:D Never!