Indo, Spain's largest eyewear manufacturer, has been using its strength on its home market to negotiate reciprocal agreements with major players in other markets. De Rigo is distributing in Italy Indo's licensed brand of children's eyewear, Chupa Chups, while Indo will distribute Givenchy and Sting in Spain. Similarly, L'Amy recently agreed to sell Indo's production of Carolina Herrera eyewear in France, in exchange for Indo's distribution in Spain of the Lacoste brand of eyewear licensed by L'Amy. Carolina Herrera will also be distributed in the USA by Viva International, a US company that recently formed a Spanish 50-50 joint venture with Indo to distribute Guess?, Gant and Harley Davidson.
Meanwhile, adopting a strategy used in other foreign markets, the Spanish group has acquired a 30 percent interest in a small Italian firm, Diamonex CB Medical, which has been distributing its lenses in the country. Within the next 3 years, Indo may increase its stake to 51 percent, rising perhaps to 100 percent at some future date. Thanks to Diamonex, Indo's sales in Italy have grown from 10,000 lenses in 2000 to a projected 100,000 in 2002. With this agreement, Indo's sales in Italy are expected to double to e3 million by 2003.