Oddly, the strong increase in demand for Luxottica's eyewear is not putting pressure on its manufacturing capacity but on the logistics. According to Massimo Vian, the group's joint chief executive in charge of product and operations, productivity gains are enabling the company to gain physical space in its existing production sites. But distribution centers are where he sees “bottlenecks for our future development.”
The group has decided to build a new distribution center in China that should come on stream in 2017. It will have the additional advantage of freeing up space in local factories. It will also more than double the capacity of its distribution center in Atlanta.
With an increase in direct shipments from manufacturing sites to clients, Vian sees improving distribution in Italy as the “real next challenge” due to a planned increase in first-level inventories in the country.