Essilor / Luxottica .....................final merger

[Chris Ryser]

It has been done......................................

Essilor and Luxottica Marriage Approved

By Daniel Feldman, October 1, 20

LUXEMBOURG and CHARENTON-LE-PONT, France—Twenty months after announcing the biggest deal in optical industry history,Delfin S.a.r.l, the majority shareholder of Luxottica Group S.p.A. and Essilor International have completed the combination of Essilor and Luxottica. The Combined holding company, EssilorLuxottica,has pro forma combined revenues in excess of € 16 billion, nearly 150,000employees and an unmatched global footprint, making it the world’s largest designer, manufacturer and distributor of ophthalmic lenses, prescription frames and sunglasses. EssilorLuxottica unveiled its new visual identity and corporate website today.

Beginning October 2, 2018, EssilorLuxottica shares will be traded on Euronext Paris, under the ticker symbol EL with the same ISIN codeFR0000121667, according to an announcement posted on the website today. They Will be part of the CAC 40 and Euro Stoxx 50 indices.
Leonardo Del Vecchio, executive chairman of EssilorLuxottica,said, “We are at the beginning of a new chapter in our history in which we strongly believe, bringing together frames and lenses under the same roof and completing our vertically integrated business model. We will enhance the excellence of Luxottica and Essilor to improve the service level and offers consumers around the world ever better products that leverage on our most beloved brands with cutting-edge lens technologies. We will expand our offering foster the development of our customers’ business and the entire industry.”

LUXEMBOURG and CHARENTON-LE-PONT, France—Twenty months after announcing the biggest deal in optical industry history,Delfin S.a.r.l, the majority shareholder of Luxottica Group S.p.A. and Essilor International have completed the combination of Essilor and Luxottica. The Combined holding company, EssilorLuxottica,has pro forma combined revenues in excess of € 16 billion, nearly 150,000employees and an unmatched global footprint, making it the world’s largest designer, manufacturer and distributor of ophthalmic lenses, prescription frames and sunglasses. EssilorLuxottica unveiled its new visual identity and corporate website today.

Beginning October 2, 2018, EssilorLuxottica shares will be traded on Euronext Paris, under the ticker symbol EL with the same ISIN codeFR0000121667, according to an announcement posted on the website today. They Will be part of the CAC 40 and Euro Stoxx 50 indices.
Leonardo Del Vecchio, executive chairman of EssilorLuxottica,said, “We are at the beginning of a new chapter in our history in which we strongly believe, bringing together frames and lenses under the same roof and completing our vertically integrated business model. We will enhance the excellence of Luxottica and Essilor to improve the service level and offers consumers around the world ever better products that leverage on our most beloved brands with cutting-edge lens technologies. We will expand our offering foster the development of our customers’ business and the entire industry.”

LUXEMBOURG and CHARENTON-LE-PONT, France—Twenty months after announcing the biggest deal in optical industry history,Delfin S.a.r.l, the majority shareholder of Luxottica Group S.p.A. and Essilor International have completed the combination of Essilor and Luxottica. The Combined holding company, EssilorLuxottica,has pro forma combined revenues in excess of € 16 billion, nearly 150,000employees and an unmatched global footprint, making it the world’s largest designer, manufacturer and distributor of ophthalmic lenses, prescription frames and sunglasses. EssilorLuxottica unveiled its new visual identity and corporate website today.


Beginning October 2, 2018, EssilorLuxottica shares will be traded on Euronext Paris, under the ticker symbol EL with the same ISIN codeFR0000121667, according to an announcement posted on the website today. They Will be part of the CAC 40 and Euro Stoxx 50 indices.


Leonardo Del Vecchio, executive chairman of EssilorLuxottica,said, “We are at the beginning of a new chapter in our history in which we strongly believe, bringing together frames and lenses under the same roof and completing our vertically integrated business model. We will enhance the excellence of Luxottica and Essilor to improve the service level and offers consumers around the world ever better products that leverage on our most beloved brands with cutting-edge lens technologies. We will expand our offering foster the development of our customers’ business and the entire industry.”


In addition to their new roles at EssilorLuxottica, Del Vecchio And Sagnieres keep their respective positions as executive chairman of Luxottica and chief executive officer of Essilor International SAS,EssilorLuxottica said. Essilor International SAS and Luxottica maintain their respective boards of directors.


Following the contribution by Delfin, the majority shareholder of Luxottica, of its 62.42 percent stake in Luxottica to Essilor on Oct.1,2018, Essilor became the parent company of Luxottica and was renamed Essilor Luxottica.


As consideration for the contribution by Delfin of its stake in Luxottica to Essilor, Essilor issued 139,703,301 new ordinary shares through a capital increase without preferential subscription rights pursuant to resolution approved by Essilor shareholders in May 2017.


Following the closing, EssilorLuxottica main shareholders are Delfin (38.93 percent of capital with voting rights capped at 31 percent) and Essilor Luxottica employees (4.9 percent). The remaining 56.8 percent of the shares are being publicly held. EssilorLuxottica said it will soon be launching a Mandatory Exchange Offer for the remaining issued and outstanding Luxottica Shares.
Essilor International and Luxottica will maintain their respective boards of directors. The board of directors of EssilorLuxottica is composed of 16 members: Leonel Ascencao Pereira, Romolo Bardin, Leonardo Del Vecchio, Juliette Favre, Giovanni Giallombardo, Bernard Hours, Annette Messemer, Francesco Milleri, Gianni Mion, Lucia Morselli, Olivier Pécoux,Sabrina Pucci 3, Hubert Sagnieres, Cristina Scocchia, Jeanette Wong and DelphineZablocki.


An integration committee, led by Leonardo Del Vecchio and Hubert Sagnieres, will ensure a smooth and successful integration of Essilor and Luxottica. The new EssilorLuxottica board of directors met today and decided on the following:
• The appointment of Hilary Halper, Essilor chief financial officer, and Stefano Grassi, Luxottica chief financial officer, as co-chief financial officers of the new combined entity.
• The Nomination and Compensation Committee will be mandated before the end of January 2019 to lead the search process for a chief executive officer.
• The approval of the new rules of procedure of the EssilorLuxottica board of directors to be published on the website of EssilorLuxottica.
• The approval of financial authorizations necessary for the combined company,Essilor International SAS and Luxottica to operate their respective businesses.


During the first part of 2019, EssilorLuxottica will present its first combined annual results and is expecting to hold a Capital Markets Day For investors and analysts.


Source:

https://theopticalvisionsite.com/ess...ision+Site+%29

[Chris Ryser]

“We are at the beginning of a new chapter in our history in which we strongly believe, bringing together frames and lenses under the same roof and completing our vertically integrated business model.

....................and here is the address of their new website:

https://www.essilor-luxottica.com

[Lab Insight]

....................and here is the address of their new website:

https://www.essilor-luxottica.com

Get your popcorn ready for the release of Braveheart 2. It is unfortunately inevitable that even more heads are gonna roll in this sequel.

Del Vecchio says "we have just completed our vertically integrated business model". Many years in the making but now a reality.

To any indy ECP out there that doesn't understand the term 'vertical integration', you are about to get schooled.

[Chris Ryser]

To any indy ECP out there that doesn't understand the term 'vertical integration', you are about to get schooled.

Vertical integration and expansion is desired because it secures the supplies needed by the firm to produce its product and the market needed to sell the product. Vertical integration and expansion can become undesirable when its actions become anti-competitive and impede free competition in an open marketplace. Vertical integration is one method of avoiding the hold-up problem. A monopoly produced through vertical integration is called a "vertical monopoly".

See all of it:

https://en.wikipedia.org/wiki/Vertical_integration

[Lab Insight]

Vertical integration and expansion is desired because it secures the supplies needed by the firm to produce its product and the market needed to sell the product. Vertical integration and expansion can become undesirable when its actions become anti-competitive and impede free competition in an open marketplace. Vertical integration is one method of avoiding the hold-up problem. A monopoly produced through vertical integration is called a "vertical monopoly".

See all of it:

https://en.wikipedia.org/wiki/Vertical_integration

Vertical integration + competitor = no ecp

Pretty simple math.

[Chris Ryser]

Vertical integration + competitor
= no ecp


Pretty simple math.

...................................well stated Lab Insight


Having followed this development since the early 1960's when big E set foot in Canada first, my predictions posted on Optiboard for the last 11 years, have become reality and will now progress at a much faster pace.

One should not forget that a manufacturer that sells retail online is making a higher gross profit than by selling through the wholesale market to professional retailers.

[mervinek]

Our office does not do business with Luxottica or Essilor. However, until recently they participated with Eyemed. Perhaps they did not realize the connection? Anyway, we dropped Eyemed and seemed to have done it at the right time now that we hear all the problems they are having. So while the merger in not good, and gives me nightmares, what more can we do?

[Chris Ryser]

You're suggesting selling at the same price as the Essi-Lux competition, and then charging for help picking out a frame, and then a charge for lens selection and then a charge for adjustment? Am I understanding this correctly?

You understand this proposal correctly.........................

However it is an idea to charge my cost at the point of sale and then add the charges for my work, time and effort spent
with the client to compensate for them.

Opticians have used a good multiplier of whatever, for the last few hundred years because in the old days of glass lenses, when there was the manual cutting and chipping of glass lenses, plus the grinding on a hand stone, and the lens which could break at any time, had to be replaced at no extra cost to the customer.

That habit of charging a higher gross profit has been continued into today's age, not counting the modernisation of techniques, materials and machineries into the finished selling prices.

However you also include also the advice time of choosing frames and everything else that go with it, the time to perfectly measure the positioning of the lenses, the discussion of the type of lenses and their materials, colors and coatings, as well as quality and warranties your patients might want.

Your patients will realize that they are paying for a really well organized craftsmanship, which is the basic need when purchasing a pair of glasses that will fit perfectly on their face with lenses that have been made for top class vision.

[Quig]

You understand this proposal correctly.........................

However it is an idea to charge my cost at the point of sale and then add the charges for my work, time and effort spent
with the client to compensate for them.

Opticians have used a good multiplier of whatever, for the last few hundred years because in the old days of glass lenses, when there was the manual cutting and chipping of glass lenses, plus the grinding on a hand stone, and the lens which could break at any time, had to be replaced at no extra cost to the customer.

That habit of charging a higher gross profit has been continued into today's age, not counting the modernisation of techniques, materials and machineries into the finished selling prices.

However you also include also the advice time of choosing frames and everything else that go with it, the time to perfectly measure the positioning of the lenses, the discussion of the type of lenses and their materials, colors and coatings, as well as quality and warranties your patients might want.

Your patients will realize that they are paying for a really well organized craftsmanship, which is the basic need when purchasing a pair of glasses that will fit perfectly on their face with lenses that have been made for top class vision.

Interesting perspective. Looks like I'm completely 180 degrees different in my approach. Ours is an industry where there is plenty of potential for profit without the 'upselling' of my time/knowledge/experience/attention to detail. My customers get that for 'free' and I make a very decent living.

I sure as heck hope ALL of my competition is of the same mindset as you though.

[Chris Ryser]

Interesting perspective. Looks like I'm completely 180 degrees different in my approach. Ours is an industry where there is plenty of potential for profit without the 'upselling' of my time/knowledge/experience/attention to detail. My customers get that for 'free' and I make a very decent living.

.......................the above is the status quo for opticians in the civilized world, for the last few hundred years.

......................because you have to sell a product that needs the producing of the raw or finished *whatever* lenses into the sold frame, where you have some extra cost through manual labour and breakage, which entitles you to charge a higher markup on the selling price, than is standard for selling finished products.

................... in many Countries, or States/Provinces the optician owning or working in, or for an optical retailer should be well trained and licensed professionals, that are making a decent salary.

My customers get that for 'free' and I make a very decent living.

There is nothing for free in this world of commerce, you can only get any goods and supplies or services for either working or paying for it.

The online sales of just about anything is forcing some large corporations to close hundreds of stores this year, as posted on Optiboard.

The world's largest newly formed optical corporation is now also by far the largest optical online retailer with the many different ones they own, and they are promoting top quality products which they produce.

[mervinek]

I'm not so sure... patients already complain that they are being nickeled and dimed. (They can get glasses cheaper at Visionworks!) God forbid an AR lens cost more than one without AR! While I don't compete with Visionworks because we carry higher end higher quality eyewear (sold by a great optician), to add on extra services can really be a turn off to patients. Don't get me wrong, some services should have a charge.

[lensmanmd]

If B&Ms try to survive with price wars, good luck. Ask any failed retailer that tried that approach when WalMart opened up shop next doors. Also, ask how Target competes, many just across the street from WalMart. They are not cheaper. They provide higher quality brands, better service and a better shopping environment. .
Nickle and diming is not the answer. Golfnut said it well "ECP's who adopt this strategy will lose volume as a result"
Bargain shoppers will shop guided by price, not quality. They do not necessarily care about quality of service, or even knowledge. They have come to view eyewear as a commodity, not a professionally serviced device. We all can thank LensCrafters under the misguided retail direction that Luxottica mismanaged. You can thank Coastal, Zenni, WP and others, as well.
ECPs need to look at their strategy and the market where they do business. What does your business model look like? What do you want it to look like? Who are your clients, and what are their needs? Then tailor your model aligned to that. That is how one survives (and flourishes) in the world of Amazon and EssiLux.
Service is not free, but consider it a part of your advertising budget. Will people take advantage? Of course they will. That is a part of doing business.
Charging for every little service will only drive prospective clients away. No clients, no business.

Chris, I applaud your thinking, but the retail world has changed drastically. Your model is destined for failure.

[Chris Ryser]

Chris, I applaud your thinking, but the retail world has changed drastically. Your model is destined for failure.

Good post lensmanmd...............................

My model would be the mathematical perfect solution, because the retailer would still come out at a similar end result and correct the online opticals pricing, were any follow up is missing.

I would be happy to see more other solutions to come up on Optiboard, maybe somebody has a much better way of fending off the avalanche that is forming visibly by now.

[lensmanmd]

My model would be the mathematical perfect solution

Mathematics have little to do with the current retail trend. There is more value by investing on EQ trends, instead.

[Chris Ryser]

ECPs need to look at their strategy and the market where they do business. What does your business model look like? What do you want it to look like? Who are your clients, and what are their needs? Then tailor your model aligned to that. That is how one survives (and flourishes) in the world of Amazon and EssiLux.

.....................excellent business advice, but restricted to the past of October 1, 2018 when the ESSILUX merger became a fact.

The merged corporation now also controls about another 400 optical related manufacturing companies worldwide that were added over the last 20 years.

One of their main goals is the further development of their online retail market, as stated in their yearly business report.

The online sales of their finished, non professionally adjusted prescription eyeglasses, is less than half the cost, than if purchased in a conventional optical store.

There is no solution offered in the post, plus there is another very possible development that is lurking behind the scenes.

Then tailor your model aligned to that. That is how one survives (and flourishes) in the world of Amazon and EssiLux.

The other three major world wide optical corporations (2 in Germany and 1 in Japan) might very well plan to jump into the aggressive behavior of Essilor-Luxottica and jump into the internet online optical retail sales market. We have not yet seen all the developments on that level.

A manufacturer cannot lose money by selling on the web by selling at prices that are a fraction higher than their wholesale prices to the retail market.

The optical retailer is better to put on his seatbelt, and plan ahead, the voyage into the future is only starting right now.
A new way of thinking is needed to adjust and save a profession that has been around a few hundred years.

[Don Gilman]

[Q
plus there is another very possible development that is lurking behind the scenes.
I get it... GE buys Essilux. another rumor just read in the WSJ. Essilux buys TOYS ARE US and gives away a barbie doll with every pair of glasses bought on line.

[lensmanmd]

A new way of thinking is needed to adjust and save a profession that has been around a few hundred years.

This is exactly my point. You keep shouting gloom and doom. You probably said that when WalMart hit Canada. Competitors are flourishing just blocks away from WalMart. How? By a new way of thinking. By understanding their market. By adjusting to their market. A new way of thinking, my friend, not just discounting everything, then jacking it up by adding "service" costs. That is so 1990's. Sheesh.

[Chris Ryser]

Mathematics have little to do with the current retail trend. There is more value by investing on EQ trends, instead.

...........................so make a better suggestion that might work against rock bottom online retail sales, by the world's largest and best top quality frame and lens manufacturer.

They will not invent lower quality products to sell cheaper.

[lensmanmd]

ECPs need to look at their strategy and the market where they do business. What does your business model look like? What do you want it to look like? Who are your clients, and what are their needs? Then tailor your model aligned to that. That is how one survives (and flourishes) in the world of Amazon and EssiLux.

[Chris Ryser]

ECPs need to look at their strategy and the market where they do business. What does your business model look like? What do you want it to look like? Who are your clients, and what are their needs? Then tailor your model aligned to that. That is how one survives (and flourishes) in the world of Amazon and EssiLux.

Please give a concrete possible example to counter the 50 to 60% discount by the major on-liners for their own brand name products ...........................and could be successful doing it.

However way you tailor your business model, you are still selling at the conventional dispensing opticians markup, while the largest block of online opticals, which is your long time heavily admired largest manufacturers, are advertising the same products at a 50 to 60% discount of store prices, on direct sales to the public.

Furthermore they also advertise their good support and donations of thousands of pairs of free glasses to the poor in the needy countries across the world.

[lensmanmd]

[QUOTE=Chris Ryser;549525]Please give a concrete possible example to counter the 50 to 60% discount by the major on-liners for their own brand name products ...........................and could be successful doing it.

However way you tailor your business model, you are still selling at the conventional dispensing opticians markup, while the largest block of online opticals, which is your long time heavily admired largest manufacturers, are advertising the same products at a 50 to 60% discount of store prices, on direct sales to the public./QUOTE]

You still don't get it Chris. Your model of deep discounting is not a sustainable model for retailers.
You want support? LensCrafters. We all know that they are one of the highest priced retailers in the market, yet people flock to them. Instead of a la carte pricing, they simplified it by bundling their pricing, then provided their customers with speed and convenience. Quality? Very debatable.
Ask Tallboy about his business, or DanLiv, or Quince, or other OptiBoarders. I'm sure they can speak of how they are thriving in this market, without the need to deep discount.
A sustainable model is to provide quality service and quality products to those willing to pay for them. Don't base your model on competing with on-line retailers and discounters. Instead, offer products that are not readily available elsewhere, then back the product with care, knowledge and skill.
Why do people shop at Nordtroms, when WalMart is so much cheaper? Service and Quality. Why do people shop at Whole Foods, Wegmans and others, instead of Shoppers? Quality and freshness. These retailers are unabashed about their pricing, but back it up in other ways.
Has online retailing changed the landscape? Certainly. Has it changed the way B&Ms operate? Yes. Those that did not survive used your "discount at all costs" business model. Those that survive, those that are thriving, took the service, knowledge and quality route.

[Quince]

A sustainable model is to provide quality service and quality products to those willing to pay for them. Don't base your model on competing with on-line retailers and discounters. Instead, offer products that are not readily available elsewhere, then back the product with care, knowledge and skill.
Why do people shop at Nordtroms, when WalMart is so much cheaper? Service and Quality. Why do people shop at Whole Foods, Wegmans and others, instead of Shoppers? Quality and freshness. These retailers are unabashed about their pricing, but back it up in other ways.
Has online retailing changed the landscape? Certainly. Has it changed the way B&Ms operate? Yes. Those that did not survive used your "discount at all costs" business model. Those that survive, those that are thriving, took the service, knowledge and quality route.

Amen!

[Quig]

[QUOTE=lensmanmd;549530]

Please give a concrete possible example to counter the 50 to 60% discount by the major on-liners for their own brand name products ...........................and could be successful doing it.

However way you tailor your business model, you are still selling at the conventional dispensing opticians markup, while the largest block of online opticals, which is your long time heavily admired largest manufacturers, are advertising the same products at a 50 to 60% discount of store prices, on direct sales to the public./QUOTE]

You still don't get it Chris. Your model of deep discounting is not a sustainable model for retailers.
You want support? LensCrafters. We all know that they are one of the highest priced retailers in the market, yet people flock to them. Instead of a la carte pricing, they simplified it by bundling their pricing, then provided their customers with speed and convenience. Quality? Very debatable.
Ask Tallboy about his business, or DanLiv, or Quince, or other OptiBoarders. I'm sure they can speak of how they are thriving in this market, without the need to deep discount.
A sustainable model is to provide quality service and quality products to those willing to pay for them. Don't base your model on competing with on-line retailers and discounters. Instead, offer products that are not readily available elsewhere, then back the product with care, knowledge and skill.
Why do people shop at Nordtroms, when WalMart is so much cheaper? Service and Quality. Why do people shop at Whole Foods, Wegmans and others, instead of Shoppers? Quality and freshness. These retailers are unabashed about their pricing, but back it up in other ways.
Has online retailing changed the landscape? Certainly. Has it changed the way B&Ms operate? Yes. Those that did not survive used your "discount at all costs" business model. Those that survive, those that are thriving, took the service, knowledge and quality route.

Very, very well said!

[Chris Ryser]

THE OTHER SHOE HAS DROPPED!

JLARC (Joint Legislative Audit and Review Commission) has recommended that OPTICIANS in VIRGINIA be DEREGULATED.

This is NO JOKE. This is the REAL DEAL.

If you are a LICENSED OPTICIAN IN VIRGINIA AND NOT A MEMBER OF OAV, WE NEED YOU NOW AND YOU NEED US TO WORK TO SAVE OUR LICENSES.

Join us at www.vaopticians.org TODAY! The legislation will come before the General Assembly in JANUARY.

no comments needed,............ the other side works hard to succeed, while we argue about charging for service, while selling at lower prices in exchange.

[Chris Ryser]

There are 11 occupations regulated by DPOR that do not appear to meet the criteria for regulation that are established in the Code of Virginia. These occupations include community managers, opticians, residential energy analysts, soil scientists, waste management facility operators, landscape architects, naturalgas automobile mechanics, and others. State statute clearly indicates that the state should not restrict access to any occupation unless it is “necessary for the protection or preservation of the health, safety, and welfare of the public” (§ 54.1-100). These occupations do not meet the criteria, and regulation of these occupations could be reduced or eliminated through legislation.

WHY WE DID THIS STUDY In 2017, the Joint Legislative Audit and Review Commission Directed staff to study the Department of Professional And Occupational Regulation (DPOR). JLARC staff reviewed the department’s staffing and organization, its processing of occupational licenses, and enforcement of occupational rules. JLARC staff also assessed the affordability of fees and processes for adjusting fees.ABOUT DPOR DPOR is charged with protecting the health, safety, and welfare of the public by licensing qualified individuals and businesses and enforcing standards of professional conduct for a wide variety of professions and occupations.DPOR is funded through the fees that it charges applicants, and has a non-general fund budget of$23 million.

See all of it at:
http://jlarc.virginia.gov/pdfs/reports/Rpt509.pdf

====================

What if the Optician’s License you worked so hard for was taken away?
What if every dispensing decision was made by the Doctor instead of by you?
What if anyone with no training was allowed to do what you do?

Would that affect you? You bet it would! Your pay would decrease and an untrained person would take your job in an instant! This nightmare could become reality at any time.

previous case, see all of it:

https://vaopticians.org/we-fought-you-won/