Low Cost Many Models Flood Strategy

“Here the Del Vecchios prepare briefcases for the representatives, choose collections and models. Leonardo mainly follows his own intuition, and it works. While in Cadore they specialize in plastic, Luxottica focuses on metal glasses. In a very rigid sector, where competitors produce a limited range of products, Luxottica bets on "low cost and many models." Three sample collections are prepared each year, two prescription and one sunglasses.”

“Even they had not realized the quality of the dozen or so models they had prepared, which were essentially the sum of all the know-how Del Vecchio had accumulated in the first ten years of Luxottica's life. The company was already a specialized third-party manufacturer, one of the best in the field, producing all the components, from the temples to the fronts for others. When they decide to assemble their own product, they become their own suppliers, skipping a stage in the value chain, and thus they can offer it at a lower price than anyone else. They become super competitive. The explanation of such a disruptive success by the owner of Luxottica is, as usual, simple, almost banal, somehow expected: "We had made a truly innovative product."”