You will need no partner,...........................
Originally Posted by Stanley1993
Interesting question ...................
You will need no partner, if you don't have one get a website, manage it yourself and learn all about it and direct it to your local traffic.
Keep it updated at all times, which is the most important advise I can give. Watch the ranking of the site and if it drops, correct it so it gets back into good, or top class ranking.
Chris, are you "firmoo-ing" Optiboard?
If anybody thinks internut glasses is going to put them out of business, I suggest you think of what they can't provide;
Personalized service
Truly medically needed Rx filling (Diplopia's, aniseikonia's, hemianopic's, low vision/high powers, ect.)
Unique frame selection
*Ambience*
Unique visual needs providing ( As example, Chem Clip used in unusual ways like make an occupational layer, a regressive, 3D, ect.)
The most important thing they can't provide.....You! Be your own, one of a kind brand.
There is no way anyone here can compete directly with a multi-billion dollar company online in any kind of sustainable way. It would be folly to even try. Find your niche, and be the best there is in it. And charge for your services!
I don't need new boots.
In addition to replacing the heels and soles the boots will be refit and modified if necessary. When I head back down to heavens waiting room they will be just as good as the day I bought them.
I wore them pretty much daily until 2006 and now only occasionally when we go gator hunting. A new pair today would set you back well over $750.00 but they do manufacture and sell premade boots for about $400.00.
I like to buy stuff just once if possible. I'm not cheap, I'm thrifty.
Group of an Investigation Concerning the Fairness of the Sale of the Company to .....
INVESTOR ALERT: Levi & Korsinsky, LLP Notifies Shareholders of Luxottica
Group of an Investigation Concerning the Fairness of the Sale of the Company to Essilor
January 27, 2017 11:21 AM Eastern Standard Time
NEW YORK--(BUSINESS WIRE)--The following statement is being issued by Levi & Korsinsky, LLP:
To: All Persons or Entities who purchased Luxottica Group (NYSE: LUX) stock prior to January 16, 2017.
INVESTOR ALERT: Levi & Korsinsky, LLP Notifies Shareholders of Luxottica Group of an Investigation Concerning the Fairness of the Sale of the Company to Essilor
or contact Joseph E. Levi, Esq. either via email at jlevi@zlk.com or by telephone at (212) 363-7500,toll-free: (877) 363-5972. Thereis no cost or obligation to you.
Levi & Korsinsky is a national firm withoffices in New York, New Jersey, Connecticut and Washington D.C.The firm’s attorneys have extensive expertise in prosecuting securitieslitigation involving financial fraud, representing investors throughout thenation in securities lawsuits and have recovered hundreds ofmillions of dollars for aggrieved shareholders. For more information,please feel free to contact any of the attorneys listed below. Attorneyadvertising. Prior results do not guarantee similar outcomes
Source: ==========>
http://www.businesswire.com/news/hom...s-Shareholders
I have the utmost respect for anyone who hunts gators, I thought they only did that on TV.
Where do you think TV got the idea from?
Above results have been achieved within a time period of a full 11 x 24 hour days,
Luxottica, Essilor in 46 billion euro merger deal to create eyewear giant: Sources
Started by Chris Ryser, 01-15-2017 11:32 PM
Replies: 156….Views: 9,312…Lelarep 01-27-2017, 09:44 PM
Above results have been achieved within a time period of a full 11 x 24 hour days, plus 30 minutes. If there would not have been some interest even after a few days the thread would have died soon, but reaching that number in that short time period was encouraging.
All this without any significant posts, by the general OptiBoard membership, which has mostly either just watched or not, with the exception of a few more interested parties, that participated.
For the last 2 days this thread was listed number 6 on Google under “news of the largest optical merger “.
Top 10 Consumer Trends For 2017 ...........................
Anybody interested in learning more about this whole subject on internet commerce can access a free download by:
Top 10 ConsumerTrends For 2017
Euromonitor is our most valued partner and our key strategic source of information. You provide visibility outside of our core markets ... and a comprehensive understanding of competitors’strategies.
Consumers are now more demanding of products, services and brands than ever before and are using digital tools to articulate and fulfil their needs. The 2017 consumer is harder to characterise, not least because identity is multidimensional and in flux, with shoppers more likely to have a hand in defining themselves and their needs. They want safety and perceived volatile world, particularly for their nearest and dearest, and look to tech tools as aids in this quest. They want to shop faster and secure the swiftest convenience. They want authenticity in what they buy and expect elements of personalisation in mass produced as well as upscale items. Consumers who are “beyond average” in terms of size or dietary needs, for instance, are pushing to see their needs better met.
source and download at: =========>
http://go.euromonitor.com/wp_thank-y...liId=100369206
Last edited by Chris Ryser; 01-28-2017 at 06:12 AM.
Above subject has already been picked up by he international press:
Above subject has already been picked up by he international press:
Top consumer trends of 2017 revealed
By: Annelle Tayao-Juego - Reporter / @neltayao
Philippine Daily Inquirer / 12:00 AM January 20, 2017
Read more: https://business.inquirer.net/223172...#ixzz4X3SToBQH
Follow us: @inquirerdotnet on Twitter | inquirerdotnet on Facebook
Find your niche, and be the best there is in it. And charge for your services!
optical24/7, thank you for finally agreeing to charge for services.
Only that way you will compete with the multi-billion dollar corporation as well as your earthly physical competitor around the corner if you are a better qualified and or experienced optician than him/her.
This thread contains enough material, if properly read and understood, that the world of optical dispensing is being rattled by a new consumer age group, as well as some corporations taking advantage of it, and the reason why.
these major corporations are all out to concentrate on dominance of the optical trade
No drk, ..............I am not
I have not hijacked this thread, I have started it and added periodically new fuel, I found on the web, to the subject over the last 13 days.
There have been very few meaningless posts, but the thread that has been mostly informative in its way, and has had a big reaction in the form of attendance and views, which right now is at 9665.
The news obviously has shaken the world of optics and the most interested lookers have deducted, that a public forum in the optical trade might just be the place, to find some answers and ideas on the subject.
This thread has also proven, that these major corporations are all out to concentrate on dominance of the optical retail trade on the internet, and so far already own the biggest block of them.
Last edited by Chris Ryser; 01-29-2017 at 01:10 AM.
The Essilor Group pursues a strategy of local partnerships .........................
DEPLOYING
OUR INTERNATIONAL PRESENCE
The Essilor Group pursues a strategy of local partnerships to:
– strengthen our presence in all activities (corrective lenses, sun, online…),
– improve access to visual health throughout the world,
– meet new needs for vision correction, protection and prevention,
– create technological, industrial and commercial synergies.
These partnerships range from financial investment in distributors, industry players and laboratories toprograms in collaboration with NGOS and governments. These provide a way to create or strengthen our presence on the ground, particularly in fast-growing markets.
Respect, autonomy and synergy… We benefit from the local presence and expertise of our partners. In Return, we bring them the strength of our innovation and operational excellence. Our values and principles are embodied in all our daily interactions. A partnership charter, structured around 10 principles,formalises this relationship of mutual trust and respect.
Respect, autonomy and synergy… We benefitfrom the local presence and expertise of our partners. In return, we bring them the strength of our innovation and operational excellence. Our values and principles are embodied in all our daily interactions. A partnership charter,structured around 10 principles, formalises this relationship of mutual trust and respect.
Around the world, our multidisciplinary teams– researchers, developers, patent engineers, IP lawyers and specialists in strategic marketing – work in partnership with academia and industry. We pool together our work, exchange perspectives and combine expertise and technologies with public and private sector organisations to better meet the needs of all.
The Essilor Group has forged more than twenty research partnerships with universities and public research organizations including thethe including the Vision Institute in Paris, CNRS, INSERM,Ecole Polytechnique de Montreal, Universities of Shanghai and Wenzhou In China.The Group has also established joint ventures with other manufacturers through the Nikon-Essilor International Research Center with Nikon in Japan.
Source: =============>
https://www.essilor.com/en/the-group...y/partnerships
Chris, I don't think I've ever advocated for not charging for service. There very well may come a day that ECP's will need to breakdown charges, from warranties to services, but that day hasn't arrived yet, and I'm certainly not going to be the first on my block to do so. Though, if that's the direction our industry goes I can change policies in a day. My statement simply was meant to stop giving away particularly to customer whom don't buy from us.
I won't try to speak for other locations or markets, but the opposite of itemizing works best in my locations. We include trivex or 1.60 and AR on all our lenses ( we also do CR and other materials when appropriate). Our patient base likes bottom line pricing, not that your lenses are x, AR is x extra and lighter weight materials are also x extra. It's simply easier to sell best visual options as a package. We take no insurances and can charge less that our competitors that do. We even encourage price shoppers to compare our products and services, we simply ask they compare apples to apples. Some patients even find us lower in cost that a location that takes their insurance, especially using their out of network benefits.
We also can provide the most basic for cost conscious folks, but most of our clients can afford better and demand the best visual solution for their particular needs. The economy market just isn't our market.
...the price of everything, and the value of nothing.
Science is a way of trying not to fool yourself. - Richard P. Feynman
Experience is the hardest teacher. She gives the test before the lesson.
There very well may come a day that ECP's will need to breakdown charges
optical24/7, thank you for stating your opinion on your own situation, in view of the coming threat announced by the newly formed and merged corporation.
This thread is not meant to argue who is right or who is wrong, or has a better solution to counter an attack on our professional status quo, as it has existed for the last 200 years.'
We are all being affected by the new various trends coming up in the optical retail area that can, and is starting a chain reaction.
Anybody that is comfortable with their own commercial setup and and not worried about a future negative impact by on-line competition through some of their largest suppliers, directly or indirectly, is a happy and lucky person.
...the price of everything, and the value of nothing.
Priceless: The Value of Nothing
But is it true? Analyzing a cliché is even more treacherous than using one, but Wilde scored a nice coup with his, and in the interests of a vigorous debate I’d like to join the yielding party for a moment.
For argument’s sake, let’s turn the phrase around. If a cynic knows the price of everything but the value of nothing, then a romantic must be a man who knows the value of everything but the price of nothing.
Could it be that this romantic outlook is inherently selfish? Certainly, the man who knows the value of everything is entitled to his opinion. The value of a Rembrandt may be, in his mind, “incalculable.” The value of a sunset “inestimable,” the value of open space “immeasurable.” But where do such value judgments leave the rest of us? His opinion would trump mine if he were somehow given the power of coercion, and the romantic would then gain the right to control access to this “incalculably valuable” resource. And is it really so far fetched to believe he could gain this power? Call me cynical if you will, but my memory brims with many a tale of individuals using the power of the state to deem something “worthy” of either public use or public exclusion.
see all of it: ==========>
http://www.huffingtonpost.com/paul-s...b_1209623.html
we have already witnessed many other mergers that have not changed much in our daily
Industry Leaders Respond to Essilor-Luxottica Merger.
Monday, January 30 2017 | 9 h 21 min |
Jason Kirk, Managing Director, Kirk & Kirk
“Eye Care Professionals need to make informed business decisions about what products they prescribe and what products they sell. The fact that two giants just got bigger should not affect those choices, although it does raise awareness of their dominance.
There is a very interesting challenge from which we must all learn; in general, the public know little about lenses and will be guided by their unerring confidence in the optician/optometrist, whether you recommend an Essilor product or any other. When it comes to frames, a hugely important styling decision, they have little confidence in a ‘scientist’ hiding behind a licensed ‘fashion’ brand, especially when your consumer is well-informed on products and competitive pricing. If you want to be an independent ECP, you need to be truly independent in all aspects of your work.”
January 24:
Silvano (Syl) Ghirardi, Ophthalmic industry Executive (Retired)
I have read the comments on the “Essilux” merger and I believe that all are playing it safe. There will be change and it will happen earlier than 5 years as people position themselves for the future earlier than later. The time for the OD/Opt. practice to plan is now, not later when it will result in reactive responses. It was mentioned that e-commerce market is plateauing. Nothing can be further from reality as new technology and the addition of branding will make it much easier for the consumer to order on line.
These comments will lull the optical industry into a sense of denial about the future. It is not Essilor and Luxottica that created this market shift, they are merely proactively reacting to changes in the market and are positioning themselves for the future optical market.
It is well understood that the average OD practice “loses” 50%+ of the Rxs and these are filled by competitive channels. The OD has always used a differentiation strategy by offering quality products. But now Essilux will be able to offer quality, branded and promoted product to the patient, at market attractive prices that will be available at dispensaries or on-line. The practices will be under pressure to compete to deliver the same product at a competitive price and service.
The practices need to develop a strategy that takes into consideration the market direction and the Essilux influence, now.
January 20:GrantLarsen, President, Digital ECP Inc.www.digitalecp.com
A$65 billion-dollar merger, 140,000 employees, thousands of retail locations in150 countries. Anytime two companies of this size get together, in anyindustry, the numbers make headline news, and often with negativeundertones. In Canada,it’s impossible to manage an optical store or work as an optician and not dealwith Essilor or Luxottica branded products, ever day. Luxottica’s retailbrands, LensCrafters, Sunglass Hut, Pearle Vision and even glasses.com areformidable competitors to many opticians. They also employ thousands ofCanadians and hundreds of licensed Opticians. Essilor,Transitions and Clearly.com havea media presence familiar to many consumers searching for vision solutionsonline. So why does a consolidation of these giants evoke such a negativereaction? Better yet, how will this help the optical industry in Canada?
Whentwo companies so different get together, the result is logically complementary.Consumers see lenses as functional and frames as emotional purchasedecisions. When you combine branding from both companies, the presentationat retail brings clarity and trust to consumers in an ever confusing andfragmented market. We often say “quality and brands speak forthemselves”. That being said, Essilor and Luxottica will have a lot totalk about and advertise in the coming years. Their branded clout andmarket share size will stabilize branded value and the luxury eyewearmarket. Good news as more and more price focused companies enter a veryattractive eye care industry.
How does the investment world view this merger? Although still early, both Essilor and Luxottica share values have increased post-announcement by as much as 8%. The global eye care market is forecasted to grow at more than 5% annually through 2020. Luxottica and Essilor have made significant investments into market expansion, global manufacturing, online channels and technology research. Investments and learning they undoubtable will share to capitalize and grow their current estimated market share of 27%. With the next largest company in global eye care at barely 4% (J&J), you can bet on other companies seeking alliances or mergers to gain some competitive advantage or build investor interest.
So how do small independent retailers, consumers or eye care competitors benefit? First of all, lets keep this in perspective. You will see very little change in either company in 2017. Some of the more complicated relationships between retailers, online and vision plans (EyeMed) will take longer than that. Brand availability, pricing, policy changes, sales representation will change to build the synergies between both companies, but they will appear to be separate for years to come. So, for now this is a little like when Brad Pitt and Angelina Jolie first started dating. Lots of headlines, a whole lot of speculation, plenty of fake stories and pent up anticipation for what’s next.
Sometimes we forget how big this industry is, even in Canada. Many thought online retailers would bankrupt half of the independent bricks and mortar stores when they launched 10 years ago. Yet online is less than 6% of all eyeglass sales globally and appears to be plateauing. With so many branded choices, complicated technology and eye health implications, consumers remind us, time and again, how much they rely on your expertise. Buying eyeglasses is not a transaction. Opticians are critical to selling brands, getting the most from lens technology, protecting eye health and creating better vision. That can only be done by a local, trusted, eye care professional.
January 18:
Robert Grimard, O.O.D., owner of several optical offices in Quebec, Manitoba and New Brunswick,
has kindly given us his comments on the “megafusion” that has just been announced between Essilor and Luxottica:
“In my opinion, it is in the order of things. We are witnessing a merger that was to happen between two complementary partners, lenses and frames. It was therefore very predictable especially since the company Essilor was already involved in the distribution of frames in the early 1990s and that it had abandoned it to concentrate on the lenses. All of this is normal. We live in a world of global acquisitions and mergers in all fields and optics are part of it!
As retailers, we have already witnessed many other mergers that have not changed much in our daily lives. And I do not think we see the effects of the EssilorLuxottica merger for several years. Because I understand that the two companies will continue to operate independently and I do not see how that would affect us in the immediate future. Unless Luxottica wants to return with a distribution center in Canada? That would give us better service …
To conclude, in this merger, I see only positive, but probably not before 5 years. The optical model is changing and evolving. I would say it’s very refreshing and exciting to see our industry moving! ”
January 16:
Robert Dalton: Executive Director Opticians Association of Canada
“The trend of mergers and acquisitions continues in the global economy and the Optical industry is no exception. The merger of Essilor and Luxottica will create a massive 55 billion CDN international company focused on eye wear and all that it encompasses. The workforce of 140,000 includes a large number of opticians who offer vision care services in Luxottica’s retail sector and serve as consultants and managers in the Essilor labs, lens divisions and marketing sectors.
The Opticians Association of Canada has traditionally had a great relationship with both Luxottica and Essilor. Their support of the OAC and recognition of opticians’ skills in the delivery of vision care services is a testament to that dedication. The OAC hopes this merger will solidify the relationship and deepen both companies commitment to deliver safe and effective vision care through the services of Licensed Opticians.
The merger is expected to have little effect on our independent Optician owners as the segment of the population who are requesting custom personalized services and/or alternative eyewear selections is growing and the boutique experience can offer choice to that demography. Speaking to our young entrepreneurial Opticians out there, we can only wait and see what new innovative business ideas will be created in light of this continued competition.
The OAC continues to monitor all business developments internationally and locally. We believe in collaboratively working together with all eye care professionals and industry to ensure the safe delivery of the highest quality of vision care services. ”
source: ==========>
https://infoclip.ca/en/industry-lead...xottica-merger
Luxottica Nabs Brazil's Oticas Carol In $117M Deal ................................
Luxottica Nabs Brazil's Oticas Carol In $117M Deal
By Chelsea Naso
Law360, New York (January 30, 2017, 2:07 PM EST) -- Luxottica inked a €110 million ($117 million) deal on Monday for prescription frames and sunglasses retailer Óticas Carol, paving the way for the Italian eyewear company to strengthen its position in Brazil just two weeks after unveiling a combination with France’s Essilor.
The plans to expand its footprint in Brazil come after Luxottica Group S.p.A. and France-based Essilor announced earlier this month that they planned to merge to create a $49 billion eyewear giant with strengths in both production and distribution.
The acquisition of Óticas Carol.
Source: ==========è
https://www.law360.com/articles/8860...l-in-117m-deal
Thread History at this Date .........................................
Luxottica, Essilor in 46 billion euro merger deal to create eyewear giant: Sources
Started by Chris Ryser, 01-15-2017 11:32 PM
· Replies:168
·
· Views: 10,705
Date : January 31. 2017, 5.12 am
The essilor international sa (ei) receives neutral rating
THE ESSILOR INTERNATIONAL SA (EI) RECEIVES NEUTRAL RATING FROM GOLDMAN SACHS GROUP INC.
Goldman Sachs Group Inc. reaffirmed their neutral rating on shares of Essilor International SA (EPA:EI) in a report released on Wednesday.
Several other research firms have also recently issued reports on EI. Jefferies Group set a €121.00 ($130.11) price target on Essilor International SA and gave the company a buy rating in a report on Tuesday, October 25th. S&P Global Inc. set a €118.00 ($126.88) target price on Essilor International SA and gave the stock a buy rating in a report on Monday, January 16th. Kepler Capital Markets set a €140.00 ($150.54) target price on Essilor International SA and gave the stock a buy rating in a report on Monday, January 16th. JPMorgan Chase & Co. set a €94.00 ($101.08) target price on Essilor International SA and gave the stock a neutral rating in a report on Thursday, January 5th. Finally, HSBC Holdings plc set a €125.00 ($134.41) target price on Essilor International SA and gave the stock a buy rating in a report on Friday, December 2nd. One research analyst has rated the stock with a sell rating, three have issued a hold rating and eight have given a buy rating to the company. Essilor International SA currently has a consensus rating of Buy and a consensus price target of €117.00 ($125.81).
Essilor International SA (EPA:EI) opened at 107.75 on Wednesday. The firm has a market cap of €23.19 billion and a P/E ratio of 29.76. Essilor International SA has a 12-month low of €93.41 and a 12-month high of €124.55. The company has a 50-day moving average price of €105.50 and a 200-day moving average price of €109.96.
About Essilor International SA
Essilor International SA, formerly Essilor International Compagnie Generale D’Optique SA, is an ophthalmic optics company. The Company designs, manufactures and markets a range of lenses to improve and protect eyesight. It also develops and markets equipment for prescription laboratories, and instruments and services for eye care professionals.
Essilor in China ........................................
Essilor has formed a new partnership by taking a 50% stake in Photosynthesis Group, a Hong Kong-based company that markets sunglasses and corrective lenses under a range of banners including MJS. It primarily operates through a network of franchised shopping mall stores in China and has begun expanding abroad in Southeast Asia. The partnership will help to drive faster growth in the Chinese optical industry, while enabling Essilor to broaden its footprint in the promising sunwear segment.
Separately, Essilor has also agreed to purchase a 55% equity interest in Jiangsu Creasky Optical, an ophthalmic lens manufacturer and distributor based in Danyang, China. Jiangsu Creasky Optical employs more than 300 people and primarily serves the domestic market. Its acquisition, which is subject to regulatory approval, is designed to expand Essilor’s offering in the Chinese mid-range segment.
Together, these two partnerships attest to Essilor’s strong acquisitions dynamic in 2016, which is expected to result in a scope effect of around 4% for the year.
On a like-for-like basis, revenue growth is now projected to end the year at around 3.5%, reflecting the temporary slowdown in the ophthalmic optical market in the United States – the Company’s largest market – and several other leading geographies, as well as the October revenue performance.
The solid growth anticipated therefore in full-year revenue at constant exchange rates reflects the strengthening of the Company’s positions across the global marketplace.
Lastly, contribution from operations1 is now expected to stand at around 18.5% of revenue, primarily due to the slower than expected like-for-like growth and the dilution from the sustained acquisitions dynamic.
In 2017 and the years ahead, Essilor will pursue its mission to improving visual health by strategically expanding in prescription lenses, sunwear and online sales. It remains confident in its ability to seize the wide variety of growth opportunities offered by the optical market, where demand is being driven by durable, robust fundamentals.
source ===========>
https://www.essilor.com/en/medias/pr...-expands-china
Thread History at this Date .........................................
Luxottica, Essilor in 46 billion euro merger deal to create eyewear giant: Sources
Started by Chris Ryser, 01-15-2017 11:32 PM
· Replies: 171
·
· Views: 10,978
Date : February 01. 2017, 5.40 am
What Lies Beneath Luxottica And Essilor’s €50bn Merger .............................
What Lies Beneath Luxottica And Essilor’s €50bn Merger
Francesco Bertozza January 31st, 2017
In January 2017, Luxottica Group, the world’s largest eyewear company, and the leading ophthalmic lens manufacturer Essilor announced a €50bn deal that will lead to the creation of a group with combined revenues of more than €15bn, 140,000 employees and sales in over 150 different markets. This is the second-largest cross-border M&A deal in Europe’s history and is expected to have a huge impact on the dynamics of the fast-growing eyewear industry.
The Eyewear Industry
Luxottica is the leader of the eyewear industry with a 14% market share. The Italian company owns Ray-Ban and Oakley and makes frames for brands like Armani, Prada and Chanel. According to 2015 Euromonitor International’s report, Luxottica’s closest rival was Essilor, with a 13% market share, whereas competitors were lagging behind – Johnson & Johnson’s 3.9% market share is a clear example.
The combined company, to be known as EssilorLuxottica, would be by far the largest player in the eyewear market, relying on Luxottica’s retail network, manufacturing lenses for both glasses and sunglasses, as well as designing and producing frames. Another possible issue for Luxottica’s competitors could be represented by Essilor being a supplier of lenses for most of their manufacturing.
It is believed that the agreement will deeply affect the global eyewear industry, which is worth about $121bn according to data from Euromonitor, and is considered one of the sectors with the highest growth opportunities. The prospects for the industry are positive, with a growth rate of over 2% expected in the industry by 2020.
The trend is being boosted by lifestyle changes due to urbanization, an aging population, awareness of visual impairment and ofsun-related eye damage, and a rising middle class in emerging markets(especially in Asia and Latin America). Of the 7.2 billion-strong world population, it has been noticed that 2.5 billion still need vision correction and about 5.8 billion people need UV protection for their eyes –definitely a huge market for the new giant EssilorLuxottica.
$121bn is the value of the global eyewear industry
Reasons behind the Merger
Despite the strong market power held by Luxottica and Essilor, and the positive trends in the eyewear industry, both companies have been struggling with slowing sales growth over the past few years, hit byrising competition from cheaper rivals and by the challenge posed by online distribution channels. The deal is aimed at creating an entity able to address growing eye care needs by exploiting the natural synergies between the two companies.
This takeover would allow the combined group to better addressthe growth opportunities resulting from strong demand in the eyewear market,which is being driven by increasing demand for corrective lenses and protective glasses
The merger is expected to create synergies both in revenues and in costs ranging from €400m to €600m but also to remove the uncertainty related to the Luxottica’s leadership succession plans. The governance of the company will be equally shared by Luxottica CEO Leonardo Del Vecchio and HubertSagnières, the CEO of Essilor who will take the role of vice-chairman and deputy CEO of the new entity.
A Wider Plan
Since 2014, Luxottica has gone through three different CEOs,generating investor concerns that have hit the company’s share value. The Merger with Essilor could represent an effective solution to the uncertainty created over the last two years, considering the 20-year age difference betweenMr Del Vecchio and Mr Sagnières.
The deal can also be considered a response to the change instrategy of the two large French luxury groups Kering and LVMH. Reports suggest that LVMH may be interested in buying 10% of Marcolin Group, an Italian eyewear company owned by the French private equity firm PAI Partners. The LVMH agreement could also involve investment in Marcolin operations and eventually led to the creation of a new company in order to fully internalise its eyewear business, following Kering’s example.
This decision is part of a wider trend thatis seeing luxury brands vertically integrate their suppliers in order to getmore control over their own products and brand image. Luca Solca,a luxury goods analyst at Exane BNP Paribas, said:
“If confirmed,the deal could mean that LVMH is preparing to integrate vertically in the eyewear business through the acquisition of production capacity from Marcolinas well as a distribution network similar to Kering eyewear.”tweet
Given the possible future threat represented by luxury brands taking control of their eyewear business, Luxottica-Essilor deal might be seen as a defensive move aimed at protecting Luxottica’s current unquestioned leadership in the eyewear market from these possible future scenarios.
Cultural Integration
From a strategic point of view, the merger seems quite natural: Essilor’s lens-making business goes perfectly with Luxottica’s frames manufacturing ability and retail presence. The real challenge would be to achieve a profitable cultural integration of the two companies since Essilor See itself as a high-tech medical company aimed at “improving lives byimproving sight” whereas Luxottica is more focused on the design of its frames that are almost seen as fashion items.
The biggest opportunity of the merger could be to combine these two different approaches to the eyewear business, a classic trade-off between function and aesthetics. If achieved, this cultural integration could create extraordinary value for stakeholders and differentiate Essilor Luxottica s offer from that of luxury groups such as Kering and LVMH.
source: ==========>
http://themarketmogul.com/what-lies-...s-e50bn-merger
Last edited by Chris Ryser; 02-01-2017 at 09:57 AM.
Amount of LensCrafters retail Stores now under the Flag of Essilux ..................
Amount of LensCrafters retail Stores now under the Flag of Essilux
In 2006, Luxottica began to expand the LensCrafters brand in China by acquiring and then rebranding local retail chains in Beijing, Shanghai,Guangdong and Hong Kong.
In 2015, Luxottica expanded its relationship with Macy’s with an agreement to open up to 500 LensCrafters stores in Macy’s locations around the United States By 2018.
The Group is also rolling out a new global design format aimed at creating a more modern and engaging experience for consumers. The first newly-designed and Macy’s locations will be opened in 2016.
As of December 31, 2015, the Group operated a retail network of 1,222 LensCrafters stores, of which 933 are in North America and the other 289 stores are in China and Hong Kong.
Source: ==========>
http://www.luxottica.com/en/retail-brands/lenscrafters
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