Eyeglass cheap ray bans uk giant shuts city plant
The planet's dominant eyeglass manufacturer, luxottica, is closing its winnipeg lens manufacturing operation that serviced a substantial portion of the canadian market, throwing about 200 people out of work.
Luxottica was operating in the former stewart n.King building at sargent avenue and st.James street.
In 2006, it acquired that former winnipeg based company, which owned the national shoppers optical chain, for a reported $67 million.Those stores became the pearle vision chain.
Martinetti confirmed the winnipeg plant is closing thursday.
"As a result of the most recent review, luxottica has made the difficult decision to close its winnipeg manufacturing facility in canada,"She said in an email exchange. "In addition, luxottica has made the separate decision to reduce the staffing levels in the cincinnati optical village facility.Luxottica is providing support programs to help impacted employees through this transition. "
One source said the winnipeg plant, which had been operating around the clock, made about 12, 000 glasses a week or more than 600, 000 a year.
A 2013 study by euro monitor international said luxottica controlled 50 per cent of the canadian market, including sunglasses.
The same study reported there were about 28.3 million pairs of all types of glasses sold in Canada ray bans sunglasses in 2013.
Robert dalton, executive director of the opticians association of canada, which is based in winnipeg, said the industry is already fully engaged in a global supply chain, with many opticians in canada regularly ordering glasses from overseas suppliers and receiving prompt delivery within days.
He said perhaps the most noteworthy effect the luxottica closure might have on the local market would be on the labour pool side.
He said about 30 per cent of independent opticians operate some kind of lens lab on their own.
"The impact to this market might be that 200 people with optical related training will soon be looking for work,"He said. "Any optician in winnipeg who may be on the fence about starting their own lab might not have to worry about whether the human resource aspect should be available to them. "
Luxottica has become one of the most dominant, most vertically integrated global players in any sector.
Last year, it generated global revenue of $10.3 billion.Including its canadian chains, it also owns a number of brands, including oakley and ray ban, and makes glasses for a number of designer labels, including chanel, ralph lauren and prada.
Greg dandewich, vice president of economic development winnipeg, said the global marketplace is in play across all key economic sectors.
"Companies have the opportunity of viewing where there may be opportunities to consolidate their operations in order to bring them the best value,"He said.
He said the consolidation play does not necessarily put communities such as winnipeg at a disadvantage. "It's an open playing field in terms of where the best opportunities lie. "
Recent consolidation of new flyer industries' after market parts operation and price industries' expansion are examples of winnipeg benefiting from that dynamic.
Just what is luxottica, and why does it control almost half the north american eyeglass market?
You might never have heard of luxottica, a 50 year old italian company, but you surely have heard of the brands it owns or licenses:Oakley, ray ban, persol, chanel, brooks brothers, bulgari, ralph lauren, prada, paul smith, coach, dkny, oliver peoples and versace.All these brands of frames and sunglasses are designed and manufactured by luxottica, which by some estimates controls 40 to 50 per cent of the north american eyeglasses and sunglasses market.
With net sales exceeding $10.8 billion in 2013 and more than 73, 000 employees worldwide, Luxottica, based in Milan, Italy, has more than 7, 000 optical and sunglasses retail stores.
Luxottica group spa recently signed a deal to make the frames for google's new internet connected eyewear, the google glass.Ceo andrea guerra told the italian daily la repubblica the push to market will be in 2015 and the google partnership should help guarantee the eyewear maker annual growth of five to 10 per cent.Guerra said luxottica should soon achieve revenues of 10 billion euros($14.8 billion).
Luxottica generates an operating profit of 20 per cent a healthy number indicating this is an industry not characterized by robust price competition.Perhaps that's why luxottica shares have nearly quadrupled in price over the past five years.
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