Application of the International Sales Accelerator for Business Development in the Eyewear Business

Abstract

The aim of this thesis is to compare the International Sales Accelerator with the entry mode of Luxottica Group S.p.A. in Germany, France, China and India. The work analysed the French, Chinese and Indian spectacles market, and its changes, especially on the distribution side. The analysis points out that Luxottica adopted very similar strategies within two different groups of countries, one formed by Germany and France and the other one formed by China and India. However, Luxottica followed very different strategies in these two different groups. In entering France, Luxottica followed a systemically process similar to the one adopted for Germany, and almost fully suitable with steps of International Sales Accelerator, with the exception of the seventh step. The path of development followed the aim to increase partnerships with distributors. This has led today to strong relationships and agreements with its clients, and the introduction of the STARS platform. The findings of the work underlined how partnerships with distributors are an essential key point in order to penetrate in particular the German and French spectacle market. In entering China, Luxottica acquired three optical retailer chains in three of the most important Chinese markets, namely Beijing, Shanghai and Guangdong. These three acquisitions allowed Luxottica to enter directly the retail distribution. As a result, Luxottica started to operate through its optical retail chain LensCrafters since the beginning. In entering India, Luxottica took advantage of the acquisition of Ray-Ban International and its subsidiary in the Indian market, and thus entered the Indian spectacles market. Luxottica operates indirectly its Sunglass Hut stores through a franchising agreement. In both countries, China and India, Luxottica relies on the Distributor Channel for the distribution of spectacles on rural areas. Overall, it has been possible to highlight how Luxottica entered the German, French, Indian and Chinese spectacles market, how Luxottica developed in the past years and how Luxottica has planned to develop in the following years. As a result, it is possible to state that the International Sales Accelerator is a valid tool for the explanation of Luxottica strategy in these four countries. However, further researches are necessary to study the future steps of suppliers and the next stage of development of Luxottica in Germany, France, China and India.