DLF Set to Enter Luxury Eyeware Retail with Luxottica Tie-Up
In a significant move, India's largest real estate developer, DLF, is poised to sign a franchisee agreement with the Italian luxury eyeware giant, Luxottica. This partnership will enable DLF to retail Luxottica's array of premium and luxury eyeware brands, including Oakley, Ray-Ban, Chanel, Dolce & Gabbana, Donna Karan, Prada, Versace, and Polo Ralph Lauren.
About Luxottica
With a valuation of Euro 15 billion, Luxottica is a world-leading designer, manufacturer, and distributor of prescription frames and sunglasses in the premium and luxury segments. The group boasts ownership of 10 premium eyeware brands, including Ray-Ban, Oakley, Vogue, and Revo, alongside licence agreements with 20 top brands such as Burberry, Prada, Tiffany, and Salvatore Ferragamo.
Expansion Plans
Under the terms of the franchisee agreement, which is initially valid for seven years, DLF plans to launch over 100 Sunglass Hut stores across India over the next five years. The first store is anticipated to open in New Delhi as early as next month. This move aligns with Luxottica's global footprint, which includes over 2,000 Sunglass Hut retail stores and a total of 6,000 optical and sun retail stores spanning Asia, China, South Africa, Europe, and America.
Luxottica's India Presence
Having operated in India since 1999, following its acquisition of Ray-Ban from Baush & Lomb, Luxottica has recently begun distributing its other eyeware brands through a wholly-owned Indian subsidiary. The company also operates a local manufacturing facility in the country. However, with this new partnership, DLF will assume responsibility for the entire distribution and retail operations of Luxottica's products in India.
Growing Eyeware Market in India
The Indian eyeware market has witnessed rapid growth, with several global brands and domestic makers competing to capture various market segments.
Significance for DLF
This tie-up with Luxottica is crucial for DLF, as it marks the realty firm's entry into the accessory space and reinforces its strategy to build a robust retail portfolio. DLF has already partnered with premium fashion brands like Armani, Dolce & Gabbana, and Salvatore Ferragamo. The company is also exploring multi-brand retail, engaging in discussions with major foreign retailers for potential partnerships, although no deal has been finalized to date.