EssilorLuxottica Business

1. Company Overview

• EssilorLuxottica was formed in 2018 by merging Essilor (lenses) and Luxottica (frames & eyewear). EssilorLuxottica+2EssilorLuxottica+2

• It is a vertically integrated leader in the eyewear industry: it handles everything from R&D to manufacturing to retail. EssilorLuxottica+2EssilorLuxottica+2

• Operates in over 150 countries with a large global footprint. EssilorLuxottica+1

• Business is split into two main operating segments:

  • Professional Solutions (PS) — B2B wholesale for opticians, optical chains, laboratories. EssilorLuxottica

  • Direct-to-Consumer (DTC) — its own retail stores + e-commerce. EssilorLuxottica+1

2. Core Business Lines / Revenue Streams

1. Lenses & Optical Products

   • Produces prescription lenses, varifocals, sun lenses, specialty lenses, etc. EssilorLuxottica+1

   • Strong R&D: ~9,000 patents and ~2,000 new products each year. EssilorLuxottica

2. Frames & Sunglasses

   • Owns iconic eyewear brands like Ray-Ban, Oakley, Persol, plus licensed luxury brands (e.g. Prada, Versace). EssilorLuxottica

   • Manufactures both budget and premium frames.

3. Retail & Eyecare Services

   • Operates ~18,000 stores globally. EssilorLuxottica

   • Offers eye exams, optical labs, and services to optometrists. Dividend Strategy

   • Recently acquired Optegra eyecare clinics, expanding into eye health services (surgery, diagnostics). Reuters

4. Smart Eyewear / Wearables

   • Partnered with Meta (formerly Facebook) to produce Ray-Ban Meta smart glasses. Reuters

   • Plans to scale production significantly (target: 10 million units/year). Reuters

   • Investing in future “eyewear + med-tech + hearing” integrations. EssilorLuxottica

5. Medical Instruments & Eye-Care Technology

   • Has a “scientific solutions” business: diagnostic instruments, ophthalmic devices, med-tech for eye health. EssilorLuxottica+1

   • Innovation includes new refraction tools and devices for better eye exams. EssilorLuxottica

3. Strategy & Competitive Advantages

• Vertical Integration: Controls R&D, production, labs, and retail — this lowers costs, increases control, and helps margin. EssilorLuxottica

• Innovation Focus: Very strong R&D capabilities. EssilorLuxottica

• Brand Portfolio: Broad range from fashion to performance to luxury. EssilorLuxottica

• Distribution Reach: Huge retail footprint + wholesale network. EssilorLuxottica

• Sustainability & Ethics: Responsible sourcing, sustainability program “Eyes on the Planet.” EssilorLuxottica

• New Growth via Tech: Smart glasses and “wearable vision” are key growth bets. Reuters

• Open Business Model: They claim a “non-exclusive network company” model, working with many partners rather than locking out competition. EssilorLuxottica

4. Key Risks & Challenges

• Regulatory / Competition Risk: Very large market share in eyewear could attract regulatory scrutiny.

• Supply Chain Complexity: Managing global manufacturing, labs, and retail means high operational risk.

• Technological Risk: Smart glasses are still early; demand may not scale as expected.

• Retail Risk: Physical retail (optical stores) faces competition from direct-to-consumer and online.

• Healthcare Risk: Expanding into eye-care clinics (surgery, diagnostics) means navigating medical regulation and capital intensity.

• Sustainability Pressures: High expectations to meet ESG goals (carbon, circularity).

5. Why It Matters

• EssilorLuxottica is one of the most powerful companies in eyewear, controlling a huge part of what people wear on their faces.

• Its integration of vision care + fashion + technology positions it well for the future, especially in smart wearables.

• Because of its scale, innovation, and global reach, it is a key player in both consumer eyewear and eye health.