By jerry on January 9, 2014

Luxottica’s annual report shows the cost of designing and manufacturing those frames at its factories in China and Italy accounts for only about a third of what it charges retailers for them. There are also the royalties it must pay to those big name designers, estimated at 10 to 15 per cent. But even after those and other expenses, Luxottica generates an operating profit of 20 per cent a healthy number that indicates this is an industry not characterized by robust price competition.

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