The luxury goods sector has been virtually unscathed by the current economic slowdown and decline in spending, according to the head of the Italian eyewear giant Luxottica.
''Until now the slowdown has been minimal for the luxury sector and has had no significant effect on us,'' Leonardo Del Vecchio said on the sidelines of a board meeting on Thursday.
According to Del Vecchio, Italy's second-richest man, the ongoing economic crisis has resulted in a decline in spending by people in the medium and low-income bracket, while the rich continue to spend.
''The luxury market does not depend on those with incomes of 1,000 euros or more a month, those people who are feeling the economic crisis the most,'' he said.
Turning his attention to the high value of the euro against the American dollar, Del Vecchio observed that ''the exchange rate has been fluctuating for the past ten years and subsequently each year we make adjustments according to costs and earnings. Thus the final retail price takes into account variations in currency exchange''.
In regard to the battle in his sector to produce leading brand names under license, the Luxottica chief said ''we have always been and will always be interested in all brands. All companies in our sector are interested in winning new contracts with the leading brands and Luxottica is no different''.
Luxottica is the world's biggest eyewear producer with over 5,800 optical and sun retail stores in North America, Asia-Pacific, China and Europe.
It has a strong brand portfolio which includes Ray-Ban and under license it produces such brands as Bulgari, Burberry, Chanel, Dolce & Gabbana, Donna Karan, Polo Ralph Lauren, Prada and Versace.
The group also manages leading retail brands such as LensCrafters and Pearle Vision in North America, OPSM and Laubman & Pank in Asia-Pacific, and Sunglass Hut globally.
Founded in 1961, Luxottica has expanded both home and abroad and in the 1980s became glasses licensee for the trademarks Giorgio Armani, Genny, Byblos, Giugiaro, Yves Saint Laurent, Brooks Brothers, Emporio Armani, Sergio Tacchini and Bulgari.
The group also branched off into other fields and acquired interests in Gelati Sanson, GS-Supermarkets and Autogrill motorway restaurants.
The acquisition in 1995 of Lenscrafters, at the time the largest Italian operation abroad, and in 1996 of Optworld marked the group's shift to owning retail outlets.
Last year Luxottica bought the American sports and lifestyle accessory maker Oakley, the American sports and lifestyle accessory maker which is a global leader in sport performance optics including premium sunglasses, goggles, and prescription eyewear.
The company also offers a wide selection of Oakley-branded apparel, footwear, watches and accessories.
