Luxottica has started the integration of Oakley, the Californian brand that it bought in 2007, by merging its wholesale team into its own operations. The move, which we had already mentioned in our last issue, is the first of a “series of integration moves” scheduled in the coming weeks to turn Oakley into a “very strong” global brand, according to Luxottica's co-chief executive in charge of markets, Adil Mehboob-Khan.
The integration is expected to generate synergies of about €100 million when completed, equally split between additional sales and cost savings. Mehboob-Khan denied that the two organizations were being kept separate because of different corporate cultures and put it down to the fact that the Italian group was “too busy growing” to integrate Oakley.
Luxottica stressed that the integration will focus on the commercial organization and procurement and that Oakley's peculiar company culture will be protected.
Oakley's retail and apparel business is being placed under a new leadership with the aim of doubling revenues and the number of “O” stores over the next three years.
Luxottica said that it has no plans to downsize Oakley's apparel business, which on the contrary it wants to expand. Khan estimates that Oakley has the “ability to travel across different products and different forms.”
The group's management has noted that Ray-Ban has become much bigger under the umbrella of Luxottica.