Key Partners:

Luxottica obtains licenses from luxury brands such as Armani, Chanel, and Bulgari to produce
eyeglasses under those brands' names. The expansion of Luxottica's product range and access to
affluent consumers is made possible by these partnerships.
Luxottica, like high-end brands, licenses its products to mass market companies like Coach and
Moschino to produce spectacles. Thanks to these pacts, Luxottica can reach a wider audience.
To increase its presence in the retail sector, Luxottica has been buying up optical retailers like
Lens Crafters, OPSM, and Carol. These shops offer eye exams and a wide variety of frames for
their clients to choose from.
Luxottica expands its retail presence through partnerships with major U.S. retailers like Sears
and Target to offer eyewear.
Luxottica just acquired Sunglass Hut, a well-known supplier of sunglasses. This purchase
strengthens Luxottica's standing in the eyewear industry.
Google: Luxottica and Google collaborated on innovative wearable electronics for eyewear.
Key Suppliers:

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In addition to its headquarters in northern Italy, Luxottica has six frame production facilities in
Brazil, India, and China. For the raw materials and individual parts used in making frames, they
must rely on distributors.
Luxottica's Chinese factories are located in one of the world's most important markets for
eyewear components. Chinese vendors supply factories with components and services.
To the Technology Vendors: Luxottica would rely on technology vendors for components and
experience in developing wearable technology devices in conjunction with Google.

Key Resources
Key Resources Acquired from Partners and Suppliers:
The following partners supply Luxottica with vital resources:
Renowned luxury and mid-market brands.
Customer access and eyeglass store networks.
Distribution and market reach of large US retailers.
Wearable tech development with Google cooperation expertise and technology.
Luxottica acquires the following key resources from its suppliers:
Frame-making supplies.
Production facilities for frames.
Technology and expertise for wearable tech development.

Key Activities

Key Activities:
Eyewear frames are Luxottica's bread and butter. The efficiency and quality of the final product
are guaranteed via vertical integration.
Luxottica produces designer eyewear with the Armani, Chanel, and Coach licenses.
Luxottica has partnered with major US retailers including Sears and Target to distribute its
eyeglasses after the acquisition of Lens Crafters, OPSM.
In order to create innovative wearable technologies, Luxottica collaborated with Google.
Distribution Channels:
Luxottica sells its eyewear and sun wear via a number of retail outlets, such as Lens Crafters and
Sunglass Hut.
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Through its 2014 purchase of glasses.com, Luxottica forayed into online retail, giving consumers
a new option for buying eyeglasses.
Customer Relationships:
Through its retail locations, where clients may have their eyes checked, get suggestions, and buy
eyeglasses, Luxottica maintains direct interactions with its customers.
Virtual try-ons and e-commerce are only two examples of the ways in which online platforms
like glasses.com help Luxottica foster relationships with its clientele.
Revenue Streams:
Luxottica's principal source of income is the retail selling of prescription and non-prescription
eyewear.
Luxottica is able to generate income via licensing arrangements with other brands in exchange
for license fees.

Luxottica generates income from retail sales at its owned stores including Lens Crafters and
Sunglass Hut.
Eyeglasses and sunglasses may be purchased on the website glasses.com, which helps the
business make income.

Key Resources
Human Resources: Leonardo Del Vecchio, who started off making components for eyeglasses
and grew the company into what it is now, is largely responsible for Luxottica's success. It is
essential to the company's value proposition that its retail locations have optometrists and
salespeople with advanced degrees in the field of vision correction.
Luxottica's physical resources include its six plants in northern Italy and its international
activities in places like Brazil, India, and China. Sunglasses and eyeglasses frames may be
manufactured at these factories.
Luxottica's value proposition relies heavily on the company's intellectual resources. The business
has teamed up with Google to create wearable technology, and it places a premium on creativity
and originality. A company's capacity to develop cutting-edge technologies and new goods is a
priceless asset.
The ability to raise capital is essential for Luxottica to continue growing and making strategic
acquisitions. The business has bought eyewear stores, forged technological alliances, and entered
into a number of licensing deals with high-end brands. These endeavours call for a lot of money.

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Value Prepositions
What values do we deliver to the customer?
Luxottica provides excellent eyewear, including prescription glasses and sunglasses, to its
consumers. Customers may show off their sense of fashion via eyewear, since they carry a broad
variety of brands ranging from high to cheap price points.
Which one of our customer's problems are we trying to solve?
Luxottica provides customers with prescription eyewear to help them see well. Sunglasses,
whether used for practicality or style, are a popular item among their clientele. The process of
purchasing new eyeglasses is made easier by Luxottica's comprehensive services, which include
testing your eyesight and helping you choose frames.
What products and services are we offering to our customer segments?
Both prescription eyeglasses and sunglasses are available from Luxottica. They also provide eye
exams and help you pick out a nice pair of spectacles. Luxottica's brand roster includes high-end
names like Armani, Chanel, and Bulgari as well as more accessible labels like Coach and
Moschino.
Which customer needs are we satisfying?
Luxottica offers a broad variety of eyeglasses to meet the demands of its customers for both
vision correction and style. Customers who require prescription eyewear are welcome, as are
those who just choose to wear sunglasses. Their complete approach to eyeglasses purchasing
satisfies the needs of their clientele.

Customer Relationship
Type of Relationship Expected by Customers:
Many people who buy designer eyewear from companies like Armani, Chanel, Bulgari, and
others have come to anticipate a certain level of quality and style from the companies with whom
they do business.
Retailers selling eyewear, such as LensCrafters, have a responsibility to provide their customers
with a specific degree of service.
Established Relationships:
Through licensing agreements, Luxottica has partnered with high-end and mainstream labels
including Armani, Chanel, Coach, and Moschino.
LensCrafters, OPSM, and ticas Carol are just some of the eyewear stores they've bought, and
they've also worked with major US shops like Sears and Target.
Cost of Relationships:

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A number of prestigious companies have signed license deals with Luxottica. The financial
ramifications of these deals are not specified.
Luxottica's most important customers are likely to be:
People who need or want prescription eyewear or fashionable sunglasses.
Various shops, such as Lens Crafters, OPSM, Oticas Carol, and Sunglass Hut, which sell glasses
and sunglasses.
Division of Consumers Luxottica-related categories include:
Luxottica's target demographic consists of the large number of people who need some kind of
corrective eyewear, such as eyeglasses or sunglasses.
As a manufacturer of eyewear for high-end designers like Armani, Chanel, and Bulgari,
Luxottica also serves a specialized niche market.
Partnerships with major US shops like Sears and Target to sell eyeglasses show that Luxottica is
using a multi-sided platform strategy to client acquisition.

Cost structure
What are the most important costs inherent in Luxottica's business model?
Manufacturing costs, which include producing eyeglass frames and lenses; acquisition costs,
which include purchasing other eyewear-related companies like eyewear frame distributors and
eyewear retailers; operating costs, which include hiring optometrists and sales staff for their
retail stores; and brand licensing agreements, which include paying royalties to famous designer
brands.

Which key resources and activities are most expensive for Luxottica?
Luxottica spends a lot of money on the following essential resources and activities:
Luxottica makes substantial investments in producing eyeglass frames and lenses, which
necessitates operating many facilities in countries like Italy, Brazil, India, and China.
Brand licensing: Luxottica's licensing deals with high-end and mid-range brands like Armani,
Chanel, and Coach is a significant source of revenue.
Hiring skilled optometrists and salespeople is an expenditure that must be covered in order to run
a retail business, such as an eyewear shop like Lens Crafters or Sunglass Hut.
Luxottica's costs have increased as a result of its downstream acquisitions, such as its
partnerships with major US retailers (such Sears and Target) to sell eyeglasses.
Is Luxottica's business more cost-driven or value-driven?

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The numbers suggest that Luxottica is a value- and cost-oriented company. Spending heavily on
vertical integration, manufacturing efficiency, and cost control let them crank out the most goods
possible. Their approach is clearly value-driven, as seen by their focus on differentiated brands,
premium brand acquisitions, and comprehensive service. Luxottica's commitment to providing
customers with great value in-store is shown by the company's acquisition of optical boutiques
and partnerships with major retailers. Luxottica hopes to achieve synergy between efficiency and
customer value by strengthening its brand and retail partnerships.

Revenue Streams
For what value our customers are willing to pay?
Luxottica consumers' willingness to spend is tied to their view of eyewear as a style accessory.
By collaborating with high-end labels like Armani, Chanel, and Bulgari, the firm was able to
change the public's view of glasses from a need to a stylish accessory. Customers are eager to
shell out big bucks for trendy eyewear.
For what do they currently pay?

Sunglasses and prescription glasses are now Luxottica's two most popular product lines. These
consumers buy these items for a variety of reasons, including but not limited to
How are they currently paying?
Luxottica has amassed a number of optical retail chains over the years, including Lens Crafters,
OPSM, and oticas Carol, where customers make purchases directly. In addition to getting their
eyes checked, customers often purchase eyewear while there. By combining eye exams and
eyewear sales under one roof, Luxottica has provided clients with a convenient one-stop
shopping environment.
How much does the revenue stream contribute to our overall revenue?
Over the years, Luxottica has acquired many optical retail chains, including as Lens Crafters,
OPSM, and ticas Carol, from which consumers may make direct purchases. Customers not only
have their eyes tested, but also buy new eyeglasses at the same time. Luxottica has created a one-
stop shopping experience for its customers by housing both eye tests and the sale of eyeglasses.