the eyewear World sees the group Kering (www.kering.com, Gucci, YSL, Puma) to start his own production and distribution of eyewear
The news came on Wednesday night, with a note of Kering, in which the French luxury giant led by François Pinault announced the start of the project to bring in home designing and selling its own brands so far licensed.
This information allows us to see an aspect of the world of luxury goods, as widespread as little known, the production and sale of licensed
If one produces bags and clothes start producing glasses can be complicated and expensive, so who has the expertise bears the cost of production and distribution, with all the commercial risks involved, and grants the licensee a fee of around 15%.
There are cases of licenses the production, distribution as well as geographically which take load of entire markets, we have a classic case in Japan, Korea and China, where many brands deliver directly to distributors rather than letting produce its own brand, with product lines that can be developed directly from the distributor all for a payment of a fee in respect of turnover.
The economic model of distribution, in the meantime has evolved following the approach of top brands such as LVMH (www.lvmh.com) rather than Hermes (www.hermes.com) based on a retail model (ie ownership of single-brand stores ), a model that offers the following competitive elements:
- maximum level of supply control, image, customer approach
- margin maximization, not having to pass through intermediaries
- can do without the sales campaign in showrooms, with a lead of at least 1 month in the placement of the product in stores
- Here, regardless of the “revenge” of the former CEO of Safilo, the point is that 350 million of revenue that make only 50 million fee, generating the desire not to give the edge to third parties.
it is also clear that there is invented manufacturers of spectacles, that the structure should be created that will cost and above all, irrespective of its distribution network , you will have to deal with the fact that the major glasses selling networks are in hand the producers themselves.
It will be a good challenge …