All the comments on the business of Rayban Sun are regarding Rayban brand and growth here is ordinary-15-20%.(so no point in Rayban going in for cheaper products which strategy met with disaster in India a few years ago)The real growth can come only from premium brands like Prada,Versace,Chanel,Ferragamo,Polo Ralph Lauren.....growing at 50 percen on a small base( but by now larger than (midpremium )Rayban sales) without any advertisements.Of late real growth has been here in the above Rs8000 category, according to the annual report.Lately,fashion and premium journals like Cosmopolitan,Men"s Health,Top Gear( Annual issue)seem to have ads and special pages devoted to high fashion eyewear.I suppose with designer outfits flying off the shelves these shades too will as I see ( in the photographs)that both go together.I also observe that most motorcyclists wear shades,perhaps unbranded but over the years a slight shift to high class,(made of really superior material) would mean that a huge market would emerge.
Luxottica has been reluctant to increase stake as required by law and has gone to court.Also in an interview CEO Harsh Chopra has said that interest of all shareholders will be taken care of.
I expect staus quo on shareholding to be maintained due to FDI restricions for retail and that is what Luxotticca is all about but I am not certain about their plans and am only guessing.
Quarterly today-July-Sep is the weakest quarter.While profits would depend on company strategy,sales turnover has to grow by at least 25 %.Whatever be the results I will be waiting for results after 2 years when
luxury malls and standalone retail fashion outlets together with fashion trends and rising disposable incomes really make a difference..
Edited by Ajith - 30/Oct/2006 at 9:19am