I don't give Applebee's my money. I suspect there are others - mabye even for eyeglasses.
I don't give Applebee's my money. I suspect there are others - mabye even for eyeglasses.
What should one say about the Ukrainian optical market..?
It's still in the Stone Age, I think. We don't have such things like VPS and so on.
We are a country that only is reselling not producing own product. So i think we will not feel the difference too much.
But globally it's not the finest news to hear, m-m-yeah.
As much as I don't like the increased interest in creating exam kiosks and apps I try to be realistic about the future. That is definitely the direction we are heading in. I also see 3D printing creating problems but not for a long time. They need to be more common to be a threat.
My personal experience- there are a lot of threats ahead of us, but they are not currently hurting our numbers. 90% of people that come to us from LC or whatever online retailer have recognized the difference in service, selection, and education. That is why they stay.
Have I told you today how much I hate poly?
Don't know that I would think of Sagnières as a Canadian or have any Canadian loyalty with or without citizenship. I guess that isn't really the point though. I did like the background this article covered. There is definitely some interesting history here and Del Vecchio seems quite the character. There is a lot of power at stake and though this shuffle took a few years for them to learn, there is a lot of opportunity for changes in the near future. It will probably take Del Vecchio's retirement to see any real progress though.Originally Posted by Chris Ryser
Have I told you today how much I hate poly?
Well, I didn't know they were so damn philanthropic.
Essilor will now have its fingers at a chain with over 1000 stores ..................
Nothing to do with Canadian citizenship or loyalty. The person has spent several years on this Continent and knows what is different and what it is all about. so he is not a novice.
Do not underestimate the other side. Just think that Essilor will now have its fingers at a chain with over 1000 stores on this continent, located in the USA and Canada.
Hi Chris,
I have spent much time reading this board for years, since my apprenticeship.
Interestingly enough there is not a lot of difference. In Austria and Germany there needs to be one guy with the needed certifications in the company to account for all future possible liabilities. Wich basically means hat any big chain needs just one optician per company (basically). In reality the big chains operate with about 10% opticians - trained in sale, lab and basic optics, and 90% sales personel.
Due to a wierd set of Laws Optiker - the term optician is not regulated, any sales personel can use that on their nametags. Augenoptiker - eye optician is, but try to explain that to the regular public.
The first upheaval was when Essel and Silor merged ages ago to create Essilor, they were a frames and glasses manufacturer respectively - as you sure know way better then i do. ;) It's all just a little bit of history repeating. We know their antics well - fortunately, due to the very fertile multinational economy a lot of small businesses flourish. A lot of eyewear brands are in that category.
Unfortunately most small european glass labs (meaning manufacturers, central labs for edging as you have are very rare) have quality issues, so in that regard we are screwed as well. Essilor, zeiss and in a lesser degree rodenstock control the market.
The one big difference: Due to the original economic map with lots of small countries there are a lot of former national chains and only 2 really big international players. One of wich is run by a certain family.
So the big E (or EL) can't just buy retail in one swoop. Yet.
I wish you all the best!
network of over 7,200 stores worldwide that accounts for ca. 60% of its revenue
Attractive Valuation Or Is Luxottica's Business Model At Risk?
Luxottica (NYSE:LUX) is the largest eyewear company in the world with a market capitalization of ca. €20B. The company primarily designs, manufactures and distributes mid to high-end eyewear products. It also directly sells those to the end customer through online sales and a strong retail net work.
Sustainable Competitive Advantages:
* Vertical Integration - Luxottica achieved its quasi-monopoly power over the years through excellent integration of acquisitions and execution of its vertically integrated business model. The company is involved in all parts of the value chain. It creates and designs the products after which these get manufactured in their production facilities and distributed through its logistics network in over 150 countries. About 20 years ago, the company also entered the retail space and now has a network of over 7,200 stores worldwide that accounts for ca. 60% of its revenue. Its retailing experience is also vertically integrated as in some stores the customer can purchase his glasses after having had an eye exam in-store. To complete its vertical integration, Luxottica also owns the second largest vision benefits company in the U.S. (EyeMed). The only space in which Luxottica is not a dominant player is the production of lenses.
* Non-cyclical industry - Luxottica's revenues are primarily derived from the sales of prescription glasses and sunglasses. Except in underdeveloped countries, almost every single person has a pair of sunglasses. Other than giving you protection from the sun, sunglasses are also largely considered a fashion accessory. Given that this is very likely to stay in place, it is a very sustainable product and solid business to be in. Prescription glasses are also very sustainable products as vision correction is a necessity. With approximately 2.5 billion people in the world who need glasses or eye improvement measures, it is very likely the most common flaw of the human body. With people spending less time outdoors and staring at screens more than ever before, it is unlikely that this will improve. On top of an aging and growing population, about 1 billion people do not have access to the eyewear they need. Consequently, this market has plenty of room for growth especially in emerging markets. Alternatives such as contact lenses and surgery are taking away some market share but the market for glasses is expected to remain strong. This is because most people who wear contact lenses also own a pair of glasses and surgery remains an expensive alternative with risks involved.
Source: =============è
http://seekingalpha.com/article/4012...ess-model-risk
Last edited by Chris Ryser; 01-17-2017 at 01:50 PM.
Those stock reports are bush league.
Thank you drk...................I did delete them to not get accused of anything, the rest is still ok and valid.
I would like to remind everyone that there are plenty of things going against Luxottica as well.
Maui Jim has already ended their partnership with Lenscrafters, so that will probably get more MJ frames into any independents that want it. Also, Lux bought out Oakley, laid off a bunch of folks and now there are people from another country answering phones for Oakley that do not understand the products that Oakley sells. There has been a decline in quality from Oakley already and one can only assume that consumers will soon realize this.
Ray Bans are still extremely popular but some of their new sun frames are just MJ knockoffs and I don't think they are very impressive at all. Maybe consumers will flock to the new RB frames but I wouldn't count on it.
The level of "service" in a lot of Lux stores is BAD. LC, Target, Sears, etc... they are just hiring people with retail sales skills and these people know very, very little about optics. How many times would you go back to a place if they couldn't accurately diagnose any issues you have, or failed to take accurate measurements and needed to remake your eyewear?
This merger is not good for independents but Lux already has plenty of problems they need to deal with.
So do expect some major changes in the way ...........................
As far as I understand is, that Essilor will be in charge, and will run the whole thing. So do expect some major changes in the way Essilor is doing business with the added Luxottica.
However it still might not be good for independents as Essilor has added the on-line opticals and might use the LC as a contact point for them.
Would love to see this happen ASAP!!!!
Why would it be a problem???
both stock prices rose on the news(NOT usual when mergers are announced)
this means the both shareholders think this is a good deal-
share holders and lawyers rule the world,ya know
I have a question. I pulled up a eyemed plan today. It has a portion that says Frame & Contact lens must me from selection. It talked about the Luxottica Vision Care portal. Has anyone else had this happen? I don't even know what it is.
Not you, of course. The reportage.
At this point, there's as much chance of people not buying Ray Ban as there is of people not drinking Coca-Cola.
Completely agree about Lux b&m customer service, though.
deal also removes — for now at least — uncertainty over succession at Luxottica
Jan 17, 2017 7:55am
Luxottica and Essilor seal 46 bln euro eyewear merger
Italy’s Luxottica and France’s Essilor have signed a 46 billion euro (US$49 billion) merger to create a global eyewear powerhouse with annual revenue of more than 15 billion euros.
The all-share deal is one of Europe’s largest cross-border tie-ups and brings together Luxottica, the world’s top spectacles maker with brands such as Ray-Ban and Oakley, with leading lens manufacturer Essilor, Reuters reports.
“Finally … two products which are naturally complementary — namely frames and lenses — will be designed, manufactured and distributed under the same roof,” Luxottica’s 81-year-old founder Leonardo Del Vecchio said in a statement on Monday.
The merger between the top players in the 95 billion eyewear market is aimed at helping the businesses to take full advantage of expected strong demand for prescription spectacles and sunglasses due to an aging global population and increasing awareness about eye care.
Jefferies Analysts estimate that the market is growing at between 2 percent and 4 percent a year, while Luxottica and Essilor say that at least 2.5 billion people in the world still suffer from uncorrected vision problems.
The dealalso removes — for now at least — uncertainty over succession at Luxottica,which has lost three CEOs since 2014 because of rifts with Del Vecchio.
Both companies have been grappling with slowing sales growth, hit by weakness in North America, and face rising competition from cheaper rivals and the challenge of online distribution.
While Asia and Latin America are seen by the companies as potential growth markets, e-commerce will also be a top priority.
Source: =================>
http://www.ejinsight.com/20170117-lu...eyewear-merger
We should see some action very soon, with a priority in on-line sales ...............
With the new merger going into active status very soon, my guess is that the Lens Crafters organization is in for a big revamp.
They will be also used as refueling stations for the newly to be expanded online sales as the new organization has mentioned as per above post. There you have already over 1,000 stores in the USA and Canada, to not only sell glasses, but also to service their online sales, for free or at a minimum charge.
We should see some action very soon, with a priority in on-line sales as far as it looks right now.
With Luxottica’s marriage with Essilor, Leonardo Del Vecchio has dealt with the issue of his succession
by Marigia Mangano
The marriage of Italian eyewear company Luxottica and French lens manufacturer Essilor Is a big industrial bet. With almost €50 billion of combined capitalization andtotal revenues of more than €15 billion, the numbers involved are impressive.
But beyond the future value creation that will come from the merger of the two groups, according to the most attentive observers the deal seems to meet Luxottica founder Leonardo Del Vecchio’s needs to sort out the question of succession once and for all.
And his dynasty is quite extensive. As well as his wife Nicoletta Zampillo, who entered just recently in the circle of future inheritors, there are his numerous children, stemming from three marriages, whose share allocation has already been sealed in Delfin, the controlling holding of Luxottica.
The subject of succession
The impression is that the choice to lay the foundations for this jump in size responds not just to evident industrial motives but also to the desire of Luxottica’s 81-year-old founder to slowly move the role of the family from shareholder-business manager to purely an investor.
continue reading the whole story at: ========>
http://www.italy24.ilsole24ore.com/a...p?uuid=AEIUKzB
While Asia and Latin America are seen by the companies as potential growth markets, e-commerce will also be a top priority.
Above we can see what their top priority will be to start with.
Expansion of the e-commerce.
Essilor has 15, and Lux has 2, which presently come to 17 on-line selling websites selling frames and prescriptions directly to the public.
Upping the amount of websites would probably mean that they also want to use their LensCrafter stores also as servicing units for the glasses sold on the web, which puts them at a very big advantage to start with.
Dispensing opticians should serious start thinking about what could be coming in the near future, and adapt to it before it gets here.
The merger is the latest chapter in Del Vecchio's rags-to-riches story...............
From the small factory he founded in 1961 near Venice, Leonardo Del Vecchio created an eyeglasses empire, and at 81 is invading the corrective lenses market by merging his Luxottica firm with Essilor.
The merger is the latest chapter in Del Vecchio's rags-to-riches story.
Born in 1935 in Milan, Del Vecchio was sent to an orphanage at a young age after his father died.
At 15, he began working in a factory where the owner encouraged him to take night classes at the Brera Fine Arts Academy, in particular for design.
In 1958, Del Vecchio struck out on his own, opening his own eyeglasses workshop in the Venice region, the home of Italy's eyeglasses industry. Three years later, he founded Luxottica, which specialized in making pieces for eyeglasses manufacturers.
The business began to take off in the early 1970s when Luxottica shifted focus to making its own eyeglasses frames, and then boomed in the 1980s when the company went after the US market.
The group is today a giant quoted on both the Milan and New York stock exchanges that generated more than 9 billion euros ($9.5 billion) in sales in 2015 and counts some 80,000 employees throughout the world.
It has a stable of top brands including Ray-Ban and Oakley sunglasses, while also manufacturing frames for luxury brands such as Chanel, Prada and Versace.
Luxottica also owns the Sunglass Hut chain of retail shops.
'Big vision'
Thesuccess of Luxottica has made Del Vecchio Italy's second-richest person afterMaria Franca Fissolo, the widow of Michele Ferrero, who transformed Ferrerointo one of the world's leading sweets companies.
Forbes magazine has estimated Del Vecchio fortune at $18.8 billion (17.75billion euros).
"He owes his success to his own abilities. He was an orphan, he didn'tbenefit from privilege. And despite that, he built an empire," said AndreaSianesi, dean of the business school at the Milan Polytechnic University.
"He's someone who has a big vision," said Sianesi, pointing out thatDel Vecchio had the smarts to develop everything from "the factories,distribution networks to retail chains".
Del Vecchio "has a love for products and a deep knowledge of all thedetails. He knows all the elements of the cycle, from production todistribution," said Sianesi, adding "he acquired all this experienceon the ground".
Having worked his way up himself, Del Vecchio has forged a strong bond with hisemployees.
On his 80th birthday, he gave the firm's 8,000 employees in Italy sharesworth a total of around nine million euros.
"Luxottica has always been a very innovative company in terms of humanresources management, for example allowing employees the possibility of settingtheir work hours depending on their personal obligations," said Sianesi.
Succession turmoil
The issue of succession and the future of the company had raised concern and occasionally sparked turmoil in recent years.
In September 2014, Andrea Guerra quit after a decade as Del Vecchio's right-hand man in charge of managing Luxottica, after falling out with the company's founder.
Guerra's replacement lasted just 40 days.
After a year with two chief executives, Del Vecchio finally took over direct control of the firm in January 2016, along with the sales.
With the merger of Essilor, the world leader in corrective lenses, "...my dream to create a major global player in the eyewear industry, fully integrated and excellent in all its parts, comes finally true," Del Vecchio said in the merger announcement.
Del Vecchio will be the chief executive of the new Essilor Luxottica
The merger "is very coherent with the history of Luxottica's development" as it will create a completely integrated group, said Sianesi at the Milan Polytechnic University.
source: ==============>
http://www.thelocal.it/20170118/ital...is-own-success
Both companies' future plans were leading to a major battleground,...................
Blog Coverage Italy's Luxottica Group and France's Essilor Unite Set to Dominate the Optical World
The merger will combine the strengths of the two companies creating an eyewear company that deals in everything from lenses to frames to eyewear.
Luxottica's brand portfolio includes popular brands like Ray-Ban, Oakley, Vogue Eyewear, Persol, Oliver Peoples, and Alain Mikli. It also has licences to manufacture frames for luxury brands like Giorgio Armani, Burberry, Bulgari, Chanel, Dolce & Gabbana, Michael Kors, Prada, Ralph Lauren, Tiffany & Co., Versace and Valentino. Its business model covers the whole gamut in eyewear from design and production to logistics and distribution.
Essilor, on the other hand, caters to the customized prescription lenses and its brands include Varilux, Crizal, Transitions, Eyezen, Xperio, Foster Grant, Costa, and Bolon. Its business model also covers the entire process in prescription lenses from design to, manufacturing to marketing and distribution. It also manufactures and sells specialized equipment and instruments for eyecare professionals.
Commenting on the merger Chairman and CEO of Essilor, Hubert Sagnières said:
"By joining forces today, these two international players can now accelerate their global expansion to the benefit of customers, employees and shareholders as well as the industry as a whole."
Chairman of Delfin and Executive Chairman of Luxottica, Leonardo Del Vecchio added:
"Finally, after fifty years, two products which are naturally complementary, namely frames and lenses, will be designed, manufactured and distributed under the same roof."
Terms of the merger
The transaction is between Essilor and Delfin Sarl, the holding company of of the Del Vecchio Family which owns a majority stake in Luxottica. Delfin currently holds approximately 62% stake in Luxottica and will sell its complete stake to Essilor. In exchange Delfin will receive newly issued shares of Essilor. For each Luxottica's share, it will receive 0.461 share of Essilor. Following the exchange, Essilor will acquire the remaining outstanding shares of Luxottica from the market at the same exchange value as per the provisions of the Italian Laws. Once the shares of Luxottica are acquired, the Company will be delisted and will be merged with Essilor.
Following the merger, the new merged company will be named EssilorLuxottica and will be wholly owned subsidiary of Essilor. EssilorLuxottica is expected to be headquartered in Paris and listed at the Paris Stock Exchange. Essilor will become the holding company of EssilorLuxottica and will operate as Essilor International. It is estimated that Delfin will end up owning 31%-38% in the new company and will be one of the largest shareholders. Voting rights of any shareholders of EssilorLuxottica will be capped at 31%.
The current Executive Chairman of Luxottica, Leonardo Del Vecchio, will be the Executive Chairman and CEO of EssilorLuxottica whereas the current Chairman and CEO of Essilor, Hubert Sagnières will be appointed as the Executive Vice-Chairman and Deputy CEO of EssilorLuxottica. Both Leonardo Del Vecchio and Hubert Sagnières will hold equal powers as Chairman and CEO in EssilorLuxottica, they will jointly continue with their current roles in Luxottica and Essilor International. The new company's Board of Directors will have 16 members and also have equal representation with eight members each from Luxottica and Essilor.
The merger is expected to be completed in the second half of 2017. The transaction is subject to Essilor's Works Councils' information and consultation procedure according to French law, clearance from relevant anti-trust authorities, and completion of all closing conditions.
Joint Synergies and Benefits
The merger will create an eyewear behemoth that will bring frames and lenses under a single umbrella. Both companies own the best production facilities, R&D culture and a global distribution network. The merger will allow them to leverage their capabilities to capture the market opportunities and become a dominant player in the eyewear market.
The merger will also integrate over 140,000 employees and presence in over 150 countries. The merged company will have combined revenue of €15 billion and a combined EBITDA of approximately €3.5 billion, based on both companies' 2015 performance. Both companies have a healthy balance sheet and strong cash flows. The merger will thus create a financially stable and fit organisation with strong growth prospects. It is well equipped to take on the challenges of the growing competition in the sector.
The merger is also expected to generate cost and revenue synergies of over €400 million-€500 million in the mid- to long-term period.
Background
Leonardo Del Vecchio had founded Luxottica in 1961 and grew the company to its current avatar. He is now 81 years old has been looking for a merger with Essilor since 2014. He has clearly stated that none of his six children will succeed him and he is looking to retire soon. He has been having trouble managing the turmoil in the top management of his business. The current transaction is tailor made to solve his issues.
Both companies' future plans were leading to a major battleground, as Essilor had plans to enter into the manufacturing of frames and Luxottica had plans to enter the lenses market. This merger brings an amicable solution to a potentially explosive situation.
Stock Performance
Luxottica Group's share price finished yesterday's trading session at $56.73, jumping 8.22%. A total volume of 461.55 thousand shares exchanged hands, which was higher than the 3 months average volume of 98.55 thousand shares. The stock has advanced 23.51% and 16.37% in the last three months and past six months, respectively. The stock is trading at a PE ratio of 33.25 and has a dividend yield of 1.75%. The stock currently has a market cap of $27.10 billion.
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See more at source: ==============>
http://finance.yahoo.com/news/blog-c...131500519.html
I doubt that.
A big fat mall rent pricetag for an online support center?
No. Retail will still be king. Otherwise they'll be in the strip malls where the rent is cheap.
While I'd bet that first-worlders are the most comfortable doing the online shopping thing, the rest of the underdeveloped world would be a great market, as they all get little mini-stores in their grubby cellphone-grasping mitts.
From what I understand, Essilux is not a monopoly because it now claims around 33% of the global market. If it acquired VSP the percentage would change to a level in which antitrust laws would apply. (?) Anyone care to verify or clarify?
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