Our Business Model
Safilo's wholesale-oriented business model incorporates the entire business cycle of product design, research and development, production, marketing and communication up to distribution and logistics.
Safilo's value chain
Design, Innovation & Product Creation
Our eyewear products are appreciated for their quality and their innovation in both materials and design. We see quality to be key to success in the market and in effectively managing its brand portfolio. Research and development mainly focuses on two types of activities, Product Creation and Design and Research and development into new materials, technologies, production processes and tools/machinery. A new Product Creation Department was created in late 2014 with the purpose of bridging the gap between Designers and Product Supply. Its mission is to drive the development of the most unique and desirable eyewear collections by combining product development, innovation and the coordination of the multifunctional process from design to manufacturing.
Research and development of materials, product and processes aims, on one hand, to improve the technical characteristics of the products and, on the other, to develop innovations of the production process which increase its effectiveness, efficiency, quality and speed to market.
“We will continue preserving and enhancing our undisputed leadership in design, product development and innovation,… to continue pursuing a high-potential multi-segment brand portfolio strategy.”
Angelo Trocchia, CEO (Group Buisness Plan 2020-2024)
Global Product Supply & Distribution
Our products are created both within our plant facilities in Italy, Slovenia, China and the U.S. and by third-party suppliers mainly located in Italy and Asia. We have a Global Sourcing Department which is mainly responsible for buying raw materials, components and equipment to feed internal production needs as well as for purchasing finished goods. In order to ensure the quality of our products, we carefully selects suppliers and evaluates them on an ongoing basis based on their delivery times and their ability to ensure certain quality standards, as well as on their available production capacity and cost competitiveness.
We leverage quality as a competitive advantage by constantly challenging the “status quo” of our products in terms of Performance, Durability, Reliability and Perceived Quality. Our Quality System is ISO 9001:2008 certified.
“…We work hard to ensure Safilo’s continued growth on a global level, facing the significant challenges that industry changes are bringing to the sector. As a consequence of the recent license portfolio changes, it is with the objective of preserving and enhancing our Italian production capacities and capabilities that we are carrying out a restructuring plan, especially in Italy, of our industrial network. Once scaled down and made more efficient, it will continue to be the center of excellence of metal production in Longarone, in the Belluno area, and of acetate and injected plastic in Santa Maria di Sala, in the Venice area. This plan of actions and measures is aimed at guaranteeing a sustainable future for our Company, today and tomorrow, laying down a new, more efficient and more competitive foundation, opening up new possibilities for investments aimed at generating and ensuring continuity at the highest levels of our manufacturing capacity, allowing the introduction of increasingly advanced innovations to optimize people’s work and training, and improve internal and external working conditions…”
Angelo Trocchia, CEO (Non-financial consolidation statement 2019)
Global Brand Building & Marketing
Marketing to support the development of our brands portfolio is one of the key factors for our Group’s present and future success. We invest a significant part of our Marketing budgets in activities directed to consumers and we are today focusing the greater part of our resources and renewed skills into digital and social marketing, which is and will continue to be the most important vehicle of communication, both because of the ability to adequately define the recipients of advertising, and because of the change in consumer habits. We also invests in trade marketing activities, with particular regard to retail points of our main customers. Such activities are of paramount importance both to direct end-consumers towards selecting our brands and products and because of customer loyalty programs.
We develop a specific marketing plan for each of the brands in our portfolio, employing diverse strategies and actions in order to achieve optimal positioning of each of the brands and prevent them from overlapping. For licensed brands, the marketing plan is developed in close coordination with licensors.
“…we are now upgrading our business model through a more decisive shift towards a digital transformation strategy, which will support and enable significant improvements of our customer-centric and consumer-oriented activities through the adoption of innovative, state of the art digital contents and services,… investing in new digital and social media skills, to successfully engage Millennials and Generation Z consumers...”
Angelo Trocchia, CEO
Go to Market
We sell our products with an extensive subsidiary network in around 40 countries in Europe, North and Latin America, Asia Pacific and China, Middle East and Africa, and a network of more than 50 independent distribution partners covering the other countries. We reach nearly 100,000 points of sale all over the world including opticians, optometrists, ophthalmologists, distribution chains, department stores, specialised retailers, licensors’ own stores, duty free shops and sports shops. Over recent years, we have opened showrooms in prestigious locations in Milan, New York, London, Paris, Barcelona, Madrid, New Delhi, Miami, Sao Paolo, Dubai and Mexico City to present our products to our retail partners.
“In August 2020, the work on our digital transformation strategy progressed with the launch of our new B2B platform in Europe and of a new Customer Relationship Managementmarket_04 system in November. These are the first two execution waves of a significant mid-term project which goes in the direction of reshaping and enhancing the relationship, the engagement and the way we do business with our many European opticians, improving after-sales-service and client satisfaction, to ultimately increase the share of our B2B business.”
Angelo Trocchia (Group Business Plan 2020-2024/Q3 and 9M 2020 Trading update)